TMI Blog2006 (4) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... held that Tribunal is right in directing the Income-tax Officer to allow depreciation and investment allowance on the cost of the assets without deducting the amount of subsidy - - - - - Dated:- 27-4-2006 - Judge(s) : J. M. PANCHAL., BANKIM N. MEHTA. JUDGMENT The judgment of the court was delivered by J.M. Panchal J.- The Income-tax Appellate Tribunal, Ahmedabad Bench "A" has referred the following two questions for the opinion of this court under section 256(1) of the Income-tax Act, 1961: "(1) Whether, the Appellate Tribunal is right in law and on facts in directing the Income-tax Officer to allow to carry forward business loss, though time was not extended by the Income-tax Officer for filing of return? (2) Whether, the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time prayed for was extended by the Department. In view of the said conclusion, the Commissioner of Income-tax (Appeals) directed that the business loss be allowed to be carried forward. In appeal by the Income-tax Officer, Ahmedabad, the Tribunal has confirmed the view taken by the Commissioner of Income-tax (Appeals), which has given rise to the instant reference. This court has heard Ms. Monaben M. Bhatt, learned counsel for the Department, at length and in great detail, and also considered the facts of the case. It may be stated that though the assessee is duly served, it has neither appeared through its constituted agent, nor through a lawyer. In so far as question No. 1 is concerned, it is not in dispute that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by making inquiry whether the Department proposes to grant the assessee's application or not. If the Department does not desire to grant the assessee's application for extension of time, it is the duty of the Department to inform the assessee accordingly, well in advance, so that the assessee is put on his guard that unless he files his return within the prescribed period, penal consequences are liable to follow. If the Department chooses not to reply to the assessee's application within the time applied for by the assessee, time is deemed to be extended as prayed for by the assessee, and he would be justified in assuming that his application has been granted by the Department. Under the circumstances, this court is of the opinion that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
