2013 (6) TMI 161 - HC - Income Tax

Assessment in pursuance of research u/s 153A - claim of deduction which were not claimed earlier - Sales tax incentive - Capital receipt or revenue receipt - Held that:- It has been observed by the Hon'ble Supreme Court in K.P. Varghese v. Income Tax Officer : [1981 (9) TMI 1 - SUPREME Court] that “it is well recognized rule of construction that a statutory provision must be so construed, if possible that absurdity and mischief may be avoided.”

The argument of the counsel for the appellant if taken to its logical end would mean that even in cases where the appeal arising out of the completed assessment has been decided by the CIT(A), ITAT and the High Court, on a notice issued under Section 153A of the Act, the AO would have power to undo what has been concluded upto the High Court. Any interpretation which leads to such conclusion has to be repelled and/or avoided as held by the Hon'ble Supreme Court in the case of K.P. Varghese [1981 (9) TMI 1 - SUPREME Court].

It is not open for the assessee to seek deduction or claim expenditure which has not been claimed in the original assessment, which assessment already stands completed, only because a assessment under Section 153A of the Act in pursuance of search or requisition is required to be made. - Decided against the assessee.