2006 (3) TMI 75 - SC - Income Tax

Whether the appellant assessee could make a claim for deduction other than by filing a revised return - held that the power of the Tribunal under section 254 is to entertain for the first time a point of law provided the fact on the basis of which the issue of law can be raised before the Tribunal. The decision does not in any way relate to the power of the AO to entertain a claim for deduction otherwise than by filing a revised return - appeal is dismissed

Summary

The Supreme Court addressed whether an appellant assessee could claim a deduction without filing a revised return for the assessment year 1995-96. The appellant filed the original return on November 30, 1995, and later sought to claim a deduction via a letter to the Assessing Officer on January 12, 1998. The Assessing Officer disallowed the deduction, holding that the Income-tax Act does not permit amendment of a return at the assessment stage without filing a revised return.The Commissioner of Income-tax (Appeals) allowed the appellant's claim, but the Income-tax Appellate Tribunal reversed this decision, upholding the Assessing Officer's order. The appellant challenged this before the Supreme Court, relying on National Thermal Power Company Ltd. v. CIT [1998] 229 ITR 383, arguing that the Tribunal could entertain points of law even if raised for the first time there.The Court clarified that the cited decision pertains to the Tribunal's power under section 254 of the Income-tax Act, 1961, to entertain points of law based on existing facts, and does not extend to permitting the Assessing Officer to accept deduction claims without a revised return. Consequently, the Court dismissed the appeal, emphasizing that the issue concerns the Assessing Officer's powers and does not affect the Tribunal's powers under section 254. No costs were awarded.