Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 524 - ITAT HYDERABAD

2015 (6) TMI 524 - ITAT HYDERABAD - TMI - Assessment under section 153A/153C - whether CIT(A) has erred in allowing the enhanced claims of interest on loans and depreciation in the proceedings initiated under section 142(1) of the I.T. Act. Held that:- A perusal of the impugned order of the Ld. CIT(A) also shows that neither the Ld. CIT(A) has given any specific finding on the merit of the assessee’s claim nor has he directed the A.O. to verify the same on merit and this position is not disputed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Shri P. M. Jagtap and Shri V. Durga Rao,JJ. For the Petitioner : Mr. P. Raviseshagiri Rao For the Respondent : Mr. D. Sudhakar Rao ORDER PER P.M. JAGTAP, A.M. These two appeals are preferred by the Revenue are directed against the common order of the Ld. CIT(A)-VI, Hyderabad dated 10.01.2014 passed for A.Ys. 2008-2009 and 2009-2010. 2. The relevant facts of the case giving rise to these appeals are as follows. The assessee in the present case is a partnership firm which is engaged in the busines .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. on 16.04.2010 calling inter alia for the return of income for A.Y. 2008-09. In response to the said notice, the return of income for A.Y. 2008-09 was filed by the assessee on 10.11.2010 declaring total income of ₹ 27,55,824. In the said return, additional claim for depreciation on building and interest paid on loan availed for the purpose of building was made by the assessee and thereby, lower income was declared. This additional claim of the assessee was not entertained by the A.O. Acco .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing total income of ₹ 28,07,290. Subsequent to the search action in the case of M/s. Midwest Granites P. Ltd., a notice under section 142(1) was issued by the A.O. on 16.04.2010 calling for the return of income for A.Y. 2009-2010. In response to the said notice, the return of income was filed by the assessee on 14.10.2010 declaring a loss of ₹ 15,72,020 after making additional/new claim for deduction on account of depreciation on building and interest paid on loan availed for the pur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

10, appeals were preferred by the assessee before the Ld. CIT(A). During course of appeallate proceedings before the Ld. CIT(A), it was contended on behalf of the assessee that the assessment under section 153C/153A is completely a fresh assessment and there is no embargo placed by law on declaration of correct amounts of income by making correct claims for expenses/depreciation. It was contended that the A.O. therefore was not justified in law in not entertaining the additional/new claim of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ere not claimed in the original return/assessment could be claimed in the assessment under section 153A/153C. 5. The Ld. CIT(A) found merit in the contention raised by the assessee and directed the A.O. to adopt the income as declared by the assessee in the return of income filed in response to the notice under section 153C for A.Y. 2008-2009 for the following reasons given in his impugned order. As regard to the A.Y. 2008-09, the fact reveals that original return of income was filed on 31.03.20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he provisions of Sec. 153C are to assess the additional income of assessee or to beneficial of revenue only. The 'appellant's objection on the said Proposition is validly justified, for the reason that there is a fundamental difference between assessment under section 147 and assessment as per provisions of Sec. 153A/153C, with assessment u/s. 153A/153C are completely a set of fresh assessment and the return of income furnished u/s. 153A/153C, treated as if such return were a return requ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rough the seized material to indicate that the income of the appellant is more than income indicated in the return filed in response to notice u/s. 153C. Thus on facts, the claims made in revised return for the year under reference, which has been treated as return filed as per provisions of Sec. 139, could not have been rejected without giving any finding or With help of cogent evidence to show that such claims are wrong and the income of the .assessee is more than what has been shown in return .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iginal returns, can be claimed in return of income filed u/s.153A. It was further held that once the return of income filed u/s.153A/153C is deemed to be a return of income filed u/s.139 and all other provisions would apply. 6. As regards A.Y. 2009-2010, the Ld. CIT(A) also found merit in the contention of the assessee that the additional/new claim made for deduction on account of interest and depreciation by way of the revised return validly filed in response to the notice under section 142(1) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vised return is considered to be within the limits prescribed by law and since the revised return is accompanied by the relevant statements/information, it may not be correct on the part of the A.O. to conclude that the appellant/assessee not furnished the reasons for admitting the lower income, in the subsequent return of income furnished in response to the notice u/s. 142(1). There is no law, that withhold the assessee firm furnishing the revised return, as per the law and it is for the A.O. t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

opinion that A.O. is not justified in ignoring the returned income as per Revised Return and adopting the income in original Return of income, without bringing material facts on record and without holding that revised returns is not valid. Hence, the ground of appeal for AY 2009-10 is treated as allowed. 7. Aggrieved by the orders of the Ld. CIT(A) for A.Ys. 2008-2009 and 2009-2010, the Revenue has preferred these appeals before the Tribunal on the following grounds : GROUNDS IN A.Y. 2008-2009 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

me filed originally. 4. The CIT(A) ought to have appreciated the fact that the assessment or reassessment made pursuant to notice under section 153C is not denovo assessment; and therefore, there is no merit in the ground to make a new claim of deduction or allowance during assessment/reassessment under section 153C, where admittedly the regular assessments are shown as completed assessments on the date of initiation of action under section 132. GROUNDS IN A.Y. 2009-2010 : 1. The impugned order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version