TMI Blog2004 (9) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... ming of set off of unabsorbed brought forward depreciation. The total income returned by the assessee was nil . The unabsorbed depreciation claimed by the assessee for the assessment year 1995-96 was Rs. 21,47,206. This amount has been set off by the assessee against the income of the impugned assessment year 1996-97. The return filed by the assessee-company was processed under section 143(1)( a ). 3. Later on the Assessing Officer found that the correct amount of unabsorbed depreciation attributable to the assessment year 1995-96 was Rs. 15,06,390. In order to rectify the above mistake, the Assessing Officer issued a notice proposing to rectify the assessment order under section 154. The assessee-company did not object to the correct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the above context that the present appeal has been filed before the Tribunal. We heard both sides in detail. There is no dispute regarding the amount of unabsorbed depreciation considered by the Assessing Officer in the course of rectification proceedings. The only issue raised in this appeal is whether the assessee is entitled to claim the deductions available under sections 80-IA and 80HHD, for the first time, before the Assessing Officer in the course of rectification proceedings under section 154. 6. When the assessee filed its return of income, it had adopted Rs. 21,47,206 as the unabsorbed depreciation pertaining to the assessment year 1995-96. When the said amount was adopted by the assessee-company, no profit was left over so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t claims at the first available opportunity itself. The assessee-company could have claimed the deductions only in the course of rectification proceedings. The assessee-company has filed the Audit Report as required by the statute and has furnished all the relevant details before the Assessing Officer in the course of rectification proceedings. 8. Therefore, we find that it is the right of the assessee-company to put forward the claims pertaining to sections 80-IA and 80HHD at the time of rectification proceedings.The Assessing Officer is not justified in negativating the claim of the assessee-company on the ground that the claim was not made along with the return of income. It is to be seen that the assessee had no such occasion to cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time of hearing, if needed. The assessment resulted in positive income and the assessee made claim for under section 80HHC deduction, through a petition filed under section 154. The claim was not allowed by the Assessing Officer. In first appeal, the CIT(A) held that the assessee was entitled to make the claim and the Assessing Officer was directed to rectify the assessment order and allow the claim made by the assessee. The matter was taken in appeal before the Tribunal. The Tribunal held that the assessee could not have furnished the return in Form No. 10CCAC, it had no occasion to claim the deduction under section 80HHC. The assessee was not anticipating any addition thereby the assessee was not anticipating the conversion of nil i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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