TMI Blog2014 (4) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... s [2000 (3) TMI 3 - SUPREME Court] it has been held that the Department should not take advantage of ignorance of an assessee and every assessee should be made known of his/its tax liability as well as benefits, reliefs and deduction available under the statute - also in Goetze (India) Limited Versus Commissioner of Income-Tax [2006 (3) TMI 75 - SUPREME Court] – the provision of Income Tax Act, 1962 restricted the power of the assessing authority to entertain a claim of deduction otherwise than by way of filing a revised return - such restriction did not extend/impinge on the power of the Appellate Tribunal u/s 254 of the Act – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee. - ITA No. 52 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly entitled for deduction u/s 80P(2)(d) of the Act and further grossly erred in holding that the computation filed before him is non-est in law . 3. Brief facts of the case are as follows. The assessee is a co-operative society. For the assessment year 2009-10, the assessee filed the return of income on 29.09.2009 declaring Nil income. The case was selected for scrutiny. During the course of scrutiny assessment, the Assessing Officer noticed that the interest income amounting to Rs.1,51,31,155/- was not credited to P L A/c, however same was reflected in balance sheet filed for the said assessment year. The assessee in the course of assessment proceedings, prepared the revised return on 29.11.2012 adding interest income of Rs.1,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition Rs.1,51,31,155/- Assessed Income Rs.1,51,31,155/- Tax thereon Rs. 45,39,347/- Add: Surcharge Rs. 4,53,934/- Add: Education Cess Rs. 1,49,800/- Total Rs. 49,93,282/- Add: Interest u/s 234B Rs. 16,97,217/- Total payable Rs. 66,90,499/- 4. Against the order of the Assessing Officer, the assessee preferred an appeal before the CIT (A). The CIT (A) originally allowed the appeal of the assessee vide his order dated 29.12.2012. The CIT (A) allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h income and claiming deduction u/s 80P(2)(d), the tax cannot be levied. In this connection assessee drew our attention to the Bangalore Bench decision in the case of Jamkandi Urban Cooperative Bank Ltd vs. ACIT Circle-1, Bijapur in ITA No.809/Bang/2011 wherein it was held that the Tribunal can direct the Assessing Officer to examine a claim of deduction, though the same was not claimed in the return of income nor in the revised return. It was submitted that the judgment of the Hon'ble Supreme Court in the case of Gotze India Ltd reported in 284 ITR 323 (S.C) restricted only the power of the assessing authority to entertain a new claim for deduction otherwise than by way of filing a revised return. However, this restriction does not imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able under the statute. 7.2 The CBDT vide circular dated 11th April, 1955 has directed the Assessing Officer not to take advantage of the assessee's ignorance and/or mistake. The relevant extract of the circular is reproduced below: 3. Officers of the Department must not take advantage of ignorance of an assessee as to his rights. It is one of their duties to assist a taxpayer in every reasonable way, particularly in the matter of claiming and securing reliefs and in this regard the Officers should take the initiative in guiding a taxpayer where proceedings 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 confidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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