Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2009 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (8) TMI 763 - AT - Income TaxNon-taxability of sales-tax incentives - Sales-tax incentives is a capital receipt not liable to tax –Assessment or Reassessment - Notices under s. 153A(a) of the Act were issued - assessees claimed deduction of sales-tax incentive on the premise that the incentive so received being granted with an object to promote industrial growth or expansion, will be a capital receipt - The reassessment proceedings, an assessee can neither claim nor be allowed a deduction that was not claimed in the original return – Held that: - According to mandate of s. 139(5) of the Act, the assessee has a statutory right to revise its return of income in the manner provided therein. An assessee filing return in response to notice under s. 153A shall also be eligible to make new claim of deduction or allowance in the case of pending assessments where time to revise returns has not expired. After the expiry of time available under s. 139(5) no such new claim of deduction or allowance can be made in such returns. It is apparent that s. 234B of the Act also mandates only the 'increase' in amount of interest pursuant to assessment under s. 153A of the Act. Sec. 240 of the Act does not entitle an assessee to claim refund of the tax paid in excess of the tax chargeable on the total income returned by the assessee in cases where assessments have already been completed but stand annulled. Sec. 139(5) of the Act stipulates time for revising return within one year from the end of the relevant assessment year or before the completion of the assessment whichever is earlier. Furthermore the original returns filed under s. 139 of the Act are relevant for imposing penalty in such cases. This all goes to show that the assessment or reassessment made pursuant to notice under s. 153A of the Act are not de novo assessments. - Assessee is not entitled to claim new claim in pursuance of notice u/s 153A if otherwise is not eligible.
|