TMI Blog2014 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... giving notice of enhancement, which has apparently not been given in this case - the AO has not rightly construed the order of the ITAT because as per ITAT, the assessee was entitled to deduction u/s 80-O but not on interest income – there was no justification to interfere with the order of CIT(A) – Decided against Revenue. - ITA No. 4001/Del/2010 - - - Dated:- 30-4-2014 - Shri G. D. Agrawal And Shri I. C. Sudhir,JJ. For the Appellant : Shri Gagan Sood, Sr. DR. For the Respondent : Shri V. K. Sabharwal, Advocate. ORDER Per G. D. Agrawal, VP : This appeal by the Revenue is directed against the order of learned CIT(A)-XXIII, New Delhi dated 18th June, 2010 for the AY 2000- 01. 2. The facts of the case in chron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e file of the CIT(A) vide order dated 14th March, 2005 in ITA No.377/Del/2005. Again, the CIT(A), vide order dated 10th November, 2005, reiterated that the assessee is not entitled to deduction under Section 80-O. The assessee again filed appeal before the ITAT vide ITA No.4785/Del/2005. In this order, the ITAT partly set aside the matter to the file of the Assessing Officer. The relevant finding of the ITAT reads as under:- 9. The assessee has again filed the appeal before the Tribunal on the two issues. One is the deduction under section 80-O with respect to interest income and the other on withdrawal of the deduction under section 80-O in full. In so far as interest received is concerned, we agree with the CIT(Appeals) that the recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als), she in an order issued on 24.11.2004 has held that the assessee was not eligible to deduction under section 80-O, at all. At that point of time, the ITAT in I.T. Act, 1961 No.977/Del/05, in an order issued on 14.3.2005 restored the matter to the file of CIT(A) who in an order issued on 10.11.2005 reiterated that the assessee was not eligible for deduction under section 80-O. Subsequently, the ITAT in an order issued on 5.9.2008 has restored the matter to the file of the Assessing Officer with his comments, details of which have already been produced in para 3 above. 7. From a bare reading, of the said order of the Hon ble ITAT, the assessee is not entitled for deduction under section 80-O with respect to the interest income. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawal of deduction under Section 80-O, the ITAT observed that it is a case of reassessment under section 148 and the issue as to the allowability of the deduction under section 80-O was not in dispute or subject matter of reopening and, therefore, the CIT(Appeals) cannot exercise the power of enhancement that too without giving notice of enhancement, which has apparently not been given in this case . Thereafter, the ITAT set aside and restored the matter to the file of the Assessing Officer. However, the Assessing Officer, while giving effect to the order of the ITAT, has disallowed the deduction under Section 80-O in totality. In our opinion, the Assessing Officer has not rightly construed the order of the ITAT because as per ITAT, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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