TMI Blog2023 (7) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... entire proceedings to determine the tax liability of the assessee. No infirmity in the order of the CIT(A) in considering the claim of the assessee for deduction u/s 80IA in the set aside proceedings, even if the same was more than the originally claimed in the return of income. Computation of deduction - We find force in the contention of the ld. DR that as per the provisions of section 80A(2) of the Act, the claim of deduction under Chapter VIA shall not in any case exceed the gross total income of the assessee. As directed that the claim of deduction u/s 80IA will be allowed to the assessee to the extent of gross total income of the assessee and the assessee will not be entitled to any claim of carry forward of loss resulting from the allowance of claim of deduction u/s 80IA of the Act by the CIT(A) more than the originally claimed. With the above observation, the appeal of the assessee is treated as partly allowed. - I.T.A Nos. 2543&2544/Kol/2018 - - - Dated:- 1-5-2023 - SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. MANISH BORAD, ACCOUNTANT MEMBER Appearances by: For the Appellant : Shri P. P Barman, Addl. CIT-DR, appeared on behalf of. For the Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, to the file of the Ld. CIT(A) for determination of such claim afresh, in accordance with law, with all issues thereon left open. Needless to mention that the assessee be given reasonable opportunity of being heard. Since, this appeal pertains to old assessment years, we deem it fit to fix a time frame for the ld. CIT(A) to dispose of these appeals. The Ld. CIT(A) is accordingly directed to dispose off these appeals within a period of 6 months from the date of receipt of this order. The assessee is directed to cooperate with the Ld. CIT(A) in disposing of these appeals expeditiously. Since we have decided to set-aside this issue to the file of the Ld. CIT(A) to decide the issue afresh, the various case laws relied upon by the Ld. A.R are not discussed herein. The Ld. CIT(A) ids directed to dispose of this issue in all the appeals uninfluenced by decision taken earlier in this regard. The decision rendered by us herein would apply with equal force for other assessment years also as far as the issue of claims of deduction u/s 80IA of the Act is concerned. Accordingly, the grounds raised on the claim of deduction u/s 80IA of the Act are allowed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, there was no restriction to the CIT(A) to restrict the deduction to the extent it was originally claimed in the return of income. The ld. CIT(A) was justified to examine all the details furnished by the assessee to determine the eligible claim of deduction to the assessee. 5. The full bench of the Hon ble Bombay High Court in the cases of Ahmedabad Electricity Company Ltd. vs. CIT and Godavari Sugar Mills Ltd. vs. CIT by way of a common order dated 30.04.1992 (1993) 199 ITR 351 has observed that the basic purpose of an appeal procedure in an income tax matter is to ascertain the correct tax liability of the assessee in accordance with law. Therefore, at both the stages, either by the Appellate Assistant Commissioner or before the Appellate Tribunal, the appellate authority can consider the proceedings before it and the material on record before it for the purpose of determining the correct tax liability of the assessee. The appellate authorities, of course, cannot travel beyond the proceedings and examine new source of income, for that purpose other separate remedies are provided to the department under the Income Tax Act. The Hon ble full bench of the Bombay Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unctions. It was further held that the AO, while exercising his quasi-judicial powers, was not bound by the said circular and should have exercised his powers independently. The Hon ble High Court, therefore, directed the AO to make the assessment without keeping in mind the said circular. It may be further observed that the Hon ble Bombay High Court in the case of Pruthvi Brokers Shareholders Pvt. Ltd. ITA No. 3908 of 2010 decided on 21.06.12, while relying upon the various decisions of the Hon ble Supreme Court and other Hon ble High Courts has held that even if a claim is not made before the AO, it can be made before the appellate authorities. The jurisdiction of the appellate authorities to entertain such a claim is not barred. The Hon ble High Court has further observed that the decision of the Hon ble Supreme Court in the case of Goetze (India) Limited v. CIT (2006) 157 Taxman 1, relating to the restriction of making the claim through a revised return was limited to the powers of the Assessing Authority and the said judgment does not impinge on the power or negate the powers of the appellate authorities to entertain such claim by way of additional ground. Even otherwi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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