TMI Blog2011 (8) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... d u/s 143(3) and the impugned order dated 4.2.2010 are without jurisdiction and therefore bad in law - The crux of arguments on behalf of the assessee is that the TRO, framing the assessment, was not authorised to make assessment as the TRO cannot assume the jurisdiction of the Assessing Officer. - Held that:- a specific order was passed by the ld. JCIT authorising the TRO to work as Assessing Officer by virtue of powers vested in her by sec. 120(5) of the Act, therefore, these judicial pronouncements may not help the assessee, consequently, find no merit in the cross-objection of the assessee. - 293 (IND.) OF 2010 - - - Dated:- 18-8-2011 - JOGINDER SINGH, R.C. SHARMA, JJ. Arun Dewan for the Appellant. H.P. Verma and Girish Agrawal for the Respondent. ORDER Joginder Singh, Judicial Member. This appeal Cross-objection are by the Revenue the assessee, respectively, against the order of the learned CIT(A)-II, Indore, dated 4.2.2010. The Revenue has raised the ground that on the facts and in the circumstances of the case, the ld. first appellate authority erred in directing the Assessing Officer to grant 100% deduction on total profits of industrial undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest 99,377 Net profit 27,50,769 43,14,730 43,14,730 The main grievance of the Revenue/Assessing Officer is that the claimed deduction u/s 80IB includes interest income of Rs. 5,71,828/- on FDR with S.B. of India and Rs. 51,825/-, deposit with Shivam Cotton Corpn., consequently, the interest income are not qualified to be treated as income derived from industrial undertaking. Before the ld. CIT as mentioned in para 3.4, the revised computation of income was filed wherein the assessee himself gave effect to interest from FDR and Shivam Cotton Corpn. and proportionate interest on the funds deployed from the borrowers, resulting into the amount of Rs. 24,83,387/-u/s 80IB against Rs. 32,82,040/-, originally claimed. In view of these facts, there is no justification either including the interest income in the profit side, as appearing in investment side or considering the interest income paid on borrowed funds in investment side in recasted profit loss account. The assessee himself excluded the amount of Rs. 1,75,000/-, being proportionate interest of the funds invested by the proprietor out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein the Assessing Officer has been defined. (7A) "Assessing Officer" means the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of section 120 or any other provision of this Act, and the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director who is directed under clause (b) of sub-section (4) of that section to exercise or perform all or any of the powers and functions conferred on, or assigned to, an Assessing Officer under this Act ; We are also reproducing hereunder sec. 120 of the Act which defines jurisdiction of Income Tax Authorities. 120. Jurisdiction of income-tax authorities. (1) Income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or, as the case may be, assigned to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities. Explanation. For the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er management of the work, require two or more Assessing Officers (whether or not of the same class) to exercise and perform, concurrently, the powers and functions in respect of any area or persons or classes of persons or incomes or classes of income or cases or classes of cases; and, where such powers and functions are exercised and performed concurrently by the Assessing Officers of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct, and, further, references in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such higher authority and any provision of this Act requiring approval or sanction of any such authority shall not apply. (6) Notwithstanding anything contained in any direction or order issued under this section, or in section 124, the Board may, by notification in the Official Gazette, direct that for the purpose of furnishing of the return of income or the doing of any other act or thing under this Act or any rule made thereunder by any person or class of persons, the income-tax authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons or classes of persons or income or classes of income or cases or classes of cases and where such powers and functions are exercises and performed concurrently by the Assessing Officer of different classes, any authority lower in rank amongst them shall exercise the powers and perform the functions as any higher authority amongst them may direct. Sec.124 further describes the jurisdiction of Assessing Officer where by virtue of any direction or order issued under sub-sec (1) or sub-sec. (2) of sec. 120, the Assessing Officer has been vested with jurisdiction or any area, within the limits of such area, he shall have jurisdiction. Sub-sec. (2) has further clarified the position whether an Assessing Officer has jurisdiction to assess any person. Sub-sec. (3) clearly says that no person shall be entitled to call any question the jurisdiction of an Assessing Officer. Sub-sec. (5) further elaborates the jurisdiction by virtue of directions/orders issued under sub-sec. (1) or sub-sec. (2) of sec. 120 of the Act. The contention of the Ld. Counsel for assessee would have merit if the TRO would have acted without the order passed u/s 120 (5) of the Act, therefore, we are of the view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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