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2012 (10) TMI 1200 - AT - Income TaxRectification of mistake u/s 254(2) - Assessee-company has opined that certain mistakes were apparent from record in the assessment order and such mistakes should be accordingly rectified. (i) Development Expenses - Assessee- company's portion of the expenditure was allowed as revenue expenditure by AO in previous year. It is requesting for allowing the similar deduction this year also - HELD THAT:- Details of total expenditure incurred towards new product development were mentioned in assessee's books but it has not filed any details of revenue expenditure, hence same could not be allowed. Thus, AO is directed to verify the claim made by the assessee in this regard and if any portion of the expenditure is found to be revenue-nature, same may be allowed. ii) Disallowance u/s 40(a)(ia) - (i) Assessee submitted that amount involved was ₹ 9.42 crores not ₹ 9.42 lakhs as mentioned in the order - HELD THAT:- Submission made by the AR is factually correct. It is directed that operative part should be read as ₹ 9.42 Crores. - Decision in favour of Assessee. (ii) Order of the CIT(A) Nasik was not considered while deciding the disallowance u/s 40a(ia) . During the assessment proceedings AO found that in the case of Nasik Unit there was a default with regard to provisions of TDS. He observed that TDS AO had passed an order u/s 194C r.w.s.20(1) and 201(1)A. It was further mentioned that the CIT(A) had confirmed the order of the TDS AO. The assessee approached the Tribunal. The ITAT in its order remitted the matter back to the file of the CIT(A) - HELD THAT:- Claim made by the assessee is factually correct- CIT(A) Nasik had vide its order had accepted the claim of the assessee-company. Thus, such claim should be considered. Decision in favour of Assessee. iii) TDS on Service Coupon Commission - As per the assessee that issue with regard to section 194 C of the Act was not adjudicated upon and matter was remitted back to AO - HELD THAT:- As far as s. 194C is concerned, full facts about the service coupon commission were not available on the file and hence matter should be restored back to the file of the AO. Decision given with regard to dealers Incentive Scheme (194H) cannot be imported for deciding the issue of service coupon commission (194C). Both do not operate in the same fields. There is no mistake apparent from record with regard to remitting back the matter to the file of the AO. Submissions made by the assessee-company about service coupons stand rejected. Matter restored back. iv) Acceptance of New Claim not made before AO - Assessee forget to claim deduction u/s 35 and such claim was not made before AO - HELD THAT:- AO directed to allow the claim made for deduction u/s. 35 of the Act after verification of the evidences produced by the assessee-company. Assessee is directed to file the details of expenditure before the AO. Decision in the case of COMMISSIONER OF INCOME TAX. CENTRAL-I VERSUS M/S. PRUTHVI BROKERS & SHAREHOLDERS PVT. LTD. [2012 (7) TMI 158 - BOMBAY HIGH COURT], relied upon where it was held that the "Assessee is entitled to raise not merely additional legal submissions before the appellate authorities, but is also entitled to raise additional claims before them. The appellate authorities have the discretion whether or not to permit such additional claims to be raised. It cannot, however, be said that they have no jurisdiction to consider the same. They have the jurisdiction to entertain the new claim. The exercise of discretion is entirely different from the existence of jurisdiction”.
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