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2020 (10) TMI 611 - AT - Income TaxDeduction u/s 43B - “Provision for diminution in the value of Investments” - year of creation of provision - Claim rejected by the A.O on the ground that he had no authority to allow any relief or deduction which had not been claimed in the return - HELD THAT:- CIT(A) was not justified in declining to consider the assessee’s claim that as the “Provision for diminution in the value of Investments” was disallowed/added back by the assessee while computing its income for the year in which it was created i.e A.Y 2013-14, the same thus could not have been included in its income for the year in question i.e A.Y 2017-18 in which it was reversed. As observed we are of a strong conviction that as no deduction for the aforesaid provision was claimed by the assessee while computing its income for the year in which it was created i.e A.Y 2013-14, the inclusion of the same on its reversal in the books of account during the year in question i.e A.Y 2017-18 would undoubtedly lead to a double taxation in its hands. Such extraction of tax from an assessee without the authority of law is prohibited as per Article 265 of the Constitution of India. See M/S. DILIP KUMAR AND COMPANY & ORS. [2018 (7) TMI 1826 - SUPREME COURT] We find ourselves to be in agreement with the claim of the assessee that as the “Provision for diminution in the value of Investments” was disallowed/added back by the assessee while computing its income for the year in which it was created i.e A.Y 2013-14, the same thus could not have been included in its income for the year under consideration i.e A.Y 2017-18 in which it was reversed. We thus in terms of our aforesaid observations ‘set aside’ the order of the CIT(A) who as observed by us hereinabove had declined to deal with the aforesaid claim of the assessee, and direct the A.O to vacate the impugned addition - Decided in favour of assessee.
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