TMI Blog2014 (6) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be taxed. Tribunal committed a serious error in holding that the assessment order is passed on the basis of the invalid return filed beyond time. Therefore, it is a clear case of misreading. The order passed by the tribunal is ex-facie illegal and therefore the said order requires to be set aside and accordingly it is set aside. The return was filed for the assessment year 2001-02. The previous year begins from 1-4-2000 to 31-3-2001 and end of the assessment year is 31-3-2002. In view of Section 153(1)(a), two years period is prescribed for passing of the assessment order which ends on 31-3-2004. The assessment order was passed on 31-3-2004 and therefore, the order passed by the Assessing Authority on the basis of the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee claimed deduction ₹ 85,25,899/- on its Tumkur Unit, under Section 80IA of the Income Tax Act, 1961 (for short the Act ). A survey was conducted on 09-03-2004 at the Tumkur Unit of the company. Statements of the employees of the assessee were recorded. The departmental officials were convinced that the assessee was not entitled to the benefit of deduction under Section 80IA of the Act.According to the assessee, there was an understanding between the Survey Team and the assessee that if the claim of Section 80IA is withdrawn by the assessee since financial years 1997-98, no penalty would be levied. The assessee on such understanding submitted a letter dated 16-3-2004 before the Assessing Officer. Consequently he filed a rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revised return had been taken into account in the course of assessment? 2.Whether the Tribunal was correct in holding that the order of assessment is time barred u/s.153 of the Act, though the assessment order was passed on 31.3.2004, which is last date for completion of the assessment for the assessment year 2001-02 and consequently recorded a perverse finding without taking into account the correct dates? 5. Learned counsel appearing for the Revenue contended that the assessment order passed by the Assessing Authority is not on the basis of the revised return and it is based on the original return filed by the assessee. Merely because in the assessment order he had noticed the filing of the revised return, the conduct of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee under Section 143(2) of the Act on 9-8-2002. Survey was conducted under Section 133 of the Act on 9-3-2004. In the course of survey, statement of the employees of theassessee were recorded and it was pointed out to them that the deduction claimed under Section 80IA is not permissible in law. The material on record suggests that the officials of the Income Tax department suggested to the assessee that if the deduction under Section 80IA is given up and the tax is paid, therewould not be any penalty proceedings. It appears, on such assurance given, a revised return was filed on 26-3-2004 showing the income as ₹ 2,27,14,450/- without claiming deduction. Thereafter, the assessment order was passed on 31-3-2004. A reading of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less than 20% of the total installed plant and machinery. Therefore it was held that the assessee was not liable to deduction underSection 80IA of the Act to begin with in the assessment year 1998-99 itself. Thereafter, the Assessing Authority had observed that when once correct position was explained to the assessee, he came forward and filed a revised return withdrawing the claim made under Section 80IA for all the assessment years beginningfrom assessment year 1998-99 to 2003-04. He also observed that the assessee has also paid the due taxes on the basis of the revised returns. Therefore, heproceeded to pass an order taking the total income of ₹ 2,27,14,450/- as declared in the original return of income as well as in the revised r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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