9911796707
TMI Blog2010 (1) TMI 887X X X X Extracts X X X X X X X X Extracts X X X X ..... ase arrived at the conclusion that assessee is not entitled for deduction under sec. 80-I rather it is entitled to claim deduction under sec.80-IB of the Act. When this fact was confronted to the assessee then assessee wrote a letter to the Assessing Officer on 24.11.2008 demanding the deduction under sec.80-IB. It was contended by the assessee that due to, a typing mistake at the end of the auditor, claim was made under sec. 80-I instead of 80-IB. The requisite condition of both the sections for claiming deduction are similar. Assessing Officer rejected the contentions of the assessee on the ground that assessee could not file revised income tax return after 31.3.2008 hence its claim cannot be entertained. Referring to the decision of Hon'ble Supreme Court in the case of Goetze (India) Ltd. vs. CIT 284 ITR 323, learned Assessing Officer has observed that Hon'ble Supreme Court has held in this decision that Assessing Officer has no power to entertain a claim made by the assessee after filing of original return otherwise then by filing a revised return. Thus, according to him assessee cannot claim a deduction under sec. 80IB. He also observed that as far as argument of assessee cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details have already been furnished vide their replies dated 13.11.2008 and 5.12.2008 filed during the course of the assessment proceeding and letter dated 25.3.2009 filed in the remand proceedings, copies of which have been placed on record. No further report has been received from the Assessing Officer in this regard. The matter has, therefore, been duly examined during the course of the appellate proceedings. 6.17 It has been submitted that the appellant satisfies the conditions specified u/s.80-IB(2) of the Act as under: It is not formed by spitting up or the reconstruction of a business already in existence, i.e., this is a new firm which starts functioning in August 2005. It is not formed by the transfer to a new business of machinery or plant previously used for any purpose; details of all the additions to fixed assets were filed during the assessment proceeding 13.11.2008. It manufactures or produces the goods which is allowable as per Notification/Circular dated 24.12.1997. No. EA/1/2/96-IPD issued by Government of India, Ministry of Industries, copy of which was filed along with the return. Further, it was engaged -in processing of Essenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T has observed that it is the duty of the Assessing Officer to assess the correct income of an assessee and for this purpose, the Assessing Officer may grant relief/refund suo-moto to an assessee. The findings of the ITAT in paragraph 49 wherein ITAT has reproduced the Boards Circular read as under:- 49. The assessee claimed deduction in the original return of income: Though the assessee revised its original return, however, claim under sections 80HH and 80-I was not revised. Subsequently, during the course of assessment proceedings, the assessee revised its claim, which the Assessing Officer did not take into cognisance as the assessee had not filed revised return to this effect, The learned CIT(A) also confirmed the action of Assessing Officer. Prima facie, the ratio of the decision of the Hon'ble Supreme Court in the case of Goetze (India) Ltd. (supra) is squarely applicable to the facts of the case because as per the law, the onus lies on the assessee to make right claim and such claim must be made within the framework of provisions of Act. However, this situation, though, it is perfectly in consonance with the position of law may result into genuine hardship to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings or other particulars before them indicate that some refund or relief is due to him. This attitude would, in the long run, benefit the department for it would inspire confidence in him that he may be sure of getting a square deal from the department. Although, therefore, the responsibility for claiming refunds and reliefs rests with assessees on whom it is imposed by law, officers should:- (a) draw their attention to any refunds or reliefs to which they appear to be clearly entitled but which they have omitted to claim for some reason or other; (b) freely advise them when approached by them as to their rights and liabilities and as to the procedure to be adopted for claiming refunds and reliefs; (c) Public Relation Officers have been appointed at important centres, but by the very nature of their duties, their field of activity is bound to be limited." The following examples (which are: by no means exhaustive) indicate the attitude which officers should adopt:- "(a) Section 17(1): While dealing with the assessment of a non-resident assessee the officer should bring to his notice that he may exercise the option to pay tax on his Indian, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late 1980s, the Government has focussed as voluntary compliance by the assessees and, therefore, Government has reduced the number cases selected for compulsory scrutiny and has also reduced the tax rates. This policy of the Government has resulted into higher tax revenues and simplification of laws. It is a settled position that the Circulars issued by the Board are binding on the subordinate income-tax authorities and if C.B.D.T. issues directions which arc beneficial to the assessees although the same may not be directly in consonance with the provisions of law, even then these instructions have to be given effect and adhered to by the concerned authorities. Thus, there is a strong case for reciprocity to be shown by the Revenue Authorities while completing assessments and to avoid administrative hardships to the assessee. As far as the decision of the Hon'ble Apex Court in the case of Goetze (India) Ltd (supra) is concerned, there is no dispute that the same is binding on everybody concerned. In the said decision, the Hon'ble Apex Court has also ruled that Appellate Tribunal may adjudicate the issue if a claim is made by any party subject to satisfaction of prescribed rules, h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
