9911796707
TMI Blog2018 (11) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... on 154 of the Income Tax Act, 1961 (hereinafter the Act) had no jurisdiction over the case of the Assessee inter alia because: a) The Id. ACIT had no territorial jurisdiction, b) On 21-08-2013, the date of issuing the notice as well as on 29-11-2013, the date of order under section 154 of the Act, the jurisdiction over the case of the Assessee was with the Id. Joint Commissioner of Income Tax, Range -39, New Delhi vide order dated 14-08-2013 of the Id. Commissioner of Income Tax, c) The assessment order being rectified by the Id. AC ITis null and void ab-initio because the same is in pursuance of the notice u/s 143(2) of the Act issued by the Id. Income Tax Officer, Ward - 39(3), New Delhi who had neither pecuniary nor territorial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing deduction u/s. 80IB of the Act in respect of interest from debtors and interest on FDR. 4. The Ld. ACIT erred in charging interest u/s 234D of the Act and in withdrawing interest u/s. 244A of the Act; and without prejudice the same are excessive. 5. The order passed by the Ld. ACIT as well as Ld. CIT(A) is against the facts of the case as well as law. 3. The brief facts of the case are that the assessment in this case was completed u/s. 143(3) of the Income Tax Act, 1961 (in short "Act") at an income of Rs. 2,27,25,710/- on 29.3.2013. Subsequently, it revealed by the AO that the assessee claimed excess deduction of Rs. 22,70,984/- u/s. 80IB of the Act. Accordingly, notice u/s. 154/155 of the I.T. Act, 1961 issued on 21.8.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013, in response to the query by the AO and the deduction u/s. 80IB of the Act in respect of income from interest received from debtors and on fixed deposits with banks was allowed in preceding years i.e. AY 2005- 06 to 2008-09. It was further submitted that provisions of section 154 of the Act are applicable to the mistake, which is apparent, glaring, obvious, self evident or ex facie that it is un-capable of argument or proof; and are not applicable to debatable issues or when two view are possible. It was further submitted that the proceedings under the provisions of section 154 of the Act cannot be initiated on the directions of the Audit Note, and also submitted that AO have not concluded anything in the assessment order regarding ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim for deduction u/s. 80IB of the Act has been examined in light of the submissions made and details/documents filed. The assessee firm is engaged in manufacturing activities and fulfils all the conditions prescribed by section 80IB of the Income Tax Act, 1961 for the deduction. The submission of the Assessee firm regarding allowability of deduction u/s. 80IB of the Act in respect of interest from debtors and fixed deposit with bank has been considered and examined vis-vis books of accounts. In view of the above detailed discussion, it is established that the industrial undertaking of the firm fulfils all the conditions specified for deduction u/s. 80IB and consequently is eligible for deduction u/s. 80IB of the Act. The deduction under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason or logic to arrive at a conclusion that deduction allowed u/s. 80IB of the Act is mistake apparent from record much less patent and glaring; the assessment order does not point any mistake of fact or application of any law. Hence, in our view there is no mistake apparent on record rectifiable u/s. 154 of the Act, therefore, we quash the orders of the authorities below and allow the deduction in dispute u/s. 80IB of the Act in respect of the interest received from debtors and on fixed deposit with banks. Accordingly, the grounds no. 2 & 3 raised by the assessee are allowed. Our aforesaid view is fortified by the decision of the Hon'ble Delhi High Court in the case of CIT vs. Krishak Bharti Co-operative Ltd. (2004) 266 ITR 208 (Del.) w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
