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2016 (1) TMI 604 - AT - Income TaxSection 14A disallowance - suo moto disallowance - Held that:- We are of the view that purpose of scrutiny assessment is to determine correct taxable income as per law and not to rely on such technicalities. The same principle applies even in appellate proceedings being in the nature of continuity of original proceedings. Therefore, we follow consistency and hold that the impugned disallowance of ₹ 36.68 crores made in the course of assessment partly sustained in lower appellate proceedings; suo moto or the one computed by the lower authorities, is not liable to be sustained. The Revenue’s reliance placed on case law Goetze India Ltd vs. CIT (2006 (3) TMI 75 - SUPREME Court) that the assessee ought to have file a revised return for deleting this suo moto addition also stands decided in assessee’s favour by hon’ble jurisdictional high court in case of Mitesh Impex (2014 (4) TMI 484 - GUJARAT HIGH COURT ) for holding that if a claim though available in law is not made either inadvertently or on account of erroneous of belief of complex legal position, such claim cannot be shut out for all times to come merely because it is raised for the first time before the appellate authority without resorting to revising the return before the assessing authority. We draw support from this decision for accepting the assessee’s additional ground leading to our adjudication in its favour on merits. The entire disallowance of ₹ 36.68 crores made by the Assessing Officer including that added suo moto at assessee’s behest of ₹ 6.23 crores is deleted by placing reliance on the hon’ble jurisdictional high court decision for succeeding assessment year. The assessee’s arguments on merits are accepted. - Decided in favour of assessee
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