TMI Blog2013 (9) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... it was partner. The firm was not a domestic company as defined in the Act. The assessee company therefore was not entitled to any deduction under Section 80M of the Act. This was permissible adjustment under Section 143 (1) (a) of the Act – Decided in favor of Revenue. - Income Tax Reference No. -112 of 1995 - - - Dated:- 9-9-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Applicant : S. C.,A. Kumar,A. N. Mahajan,B. Agarwal, D. Awasthi, G. Krishna,S. Chopra ORDER We have heard Sri Shambhu Chopra for the department. No one appears for the respondent-assessee. In this reference application No. 173 (Alld) of 1994, arising out of the order dated 26.07.1994 in I.T.A. No. 1036 ((Alld) of 1993 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 13,800 and the claim of deduction under Section 80M with reference to the amount of Rs. 1,38,34,695 was not allowed with the remarks to the effect that it was assessee's share of profit from the firm M/s. Raj Kumar Singh and company and not its dividend income. The adjusted total income was thus determined at Rs. 71,52,250. The assessee company moved an application under Section 154 of the Income Tax Act, 1961 on 6.5.1991 contending that the prima facie adjustment made in the intimation was not legally justified. In order under Section 154 dated 22.6.1992, the Assessing Officer held that dividend income was received by the firm and not the assessee company and hence there was no mistake apparent from records which could be rectified un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer did not fall in the category of ?prima facie admissible?. The contention of the department was that the type of adjustment carried out by the Assessing Officer was permissible under Section 143(1) (a) of the Income Tax Act, 1961". In the referring order dated 12.10.1994, to the High Court, the Commissioner of Income tax has stated:- "The view of the department is that, if a provision, which is inapplicable to the facts has been applied by the assessee for claiming a relief, then it is a mistake which is covered by a prima facie adjustment that could be made under 143(1) (a) of I.T.Act, 1961. In view of the above, the order of the ITAT gives rise to an important question of law which is stated as per form no. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
