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2022 (1) TMI 96 - CALCUTTA HIGH COURTExemption u/s 80IB(10) - HELD THAT:- The assessee is a Government of West Bengal undertaking and is engaged in the development of housing projects which was initially done by the housing Department of the Government of West Bengal and in the year 1972 the respondent was established and projects were developed by the respondent by constructing LIG/MIG and HIG flats for sale to the general public. The CIT(A) on going through the facts found that the income of the respondent/assessee is only from sale of flats. CIT(A) also examined as to whether the observation of the assessing officer that the assessee did not make such a claim in the original return but only in the revised return was considered for its correctness as to whether the same could have been a ground to reject the revised return and deny the claim for exemption. CIT(A) noted that the earning of interest was not from the 'first degree source' and the same could not be shown by the assessee as 'income from other sources' in the original computation and hence revised computation was filed by the assessee during the course of assessment proceedings and that the reason for rejecting the same as assigned by the assessing officer was incorrect. CIT(A) rightly noted the decision in CIT vs. Calcutta National Bank Ltd. [1959 (4) TMI 2 - SUPREME COURT] wherein held that "business" is a word of very wide connotation and applying the said decision to the facts of the case it was held that the income should be treated as business income. The tribunal on its part, examined the correctness of finding recorded by the CIT(A) and approved by same. More importantly, the tribunal noted that the assessing officer himself has allowed deduction under similar circumstances while completing the assessment for the assessment year 2006-07 u/s 143(3) of the Act - Tribunal was right in rejecting the revenue's appeal.
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