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Madras High Court in the case of CIT v. Abhinitha Foundation Pvt. Ltd. in Appeal No. 811 of 2016 dated 06.06.2017

·            Assessee filed its return of income declaring certain taxable income. Assessee had not made a claim of deduction u/s 80-IB of the Act in the return originally filed. However, during the course of assessment, assessee filed complete details with regard to same along with Form No. 10CCB.

·            Assessment u/s 143(3) was completed, whereby the income as returned by assessee was accepted and the claim of deduction u/s 80-IB was bypassed.

·            CIT(A) took note of the fact that the claim of deduction u/s 80-IB was allowed to the assessee in the preceeding as well as succeeding years. However, CIT(A) dismissed the appeal of assessee on the ground that the said claim did not form part of the original return filed by assessee for the year under consideration.

·            Tribunal ruled that the appellate authorities had the power to consider the revised claim made by assessee, if it was entitled to, even if no claim qua the same had been made in the return originally filed.

·            High Court was of the view that the power of appellate authorities to consider claims made, based on material already on record, is co-terminus with the power of AO.High Court further was of the view that failure to make the claim in the original return or revised return cannot deprive the appellate authorities of their power to consider the claim, if, relevant material is available on record and is otherwise tenable in law.

·            High Court took note of the fact that Tribunal, on perusal of the record, found that relevant material qua the claim made by assessee u/s 80-IB was placed on record by assessee during the assessment proceedings, and thus deemed it fit to direct its re-examination by the AO.

·            Therefore, High Court concluded that the view taken by Tribunal did not require any interference.

 

For further reading, refer the attachment. 

  Further Reading
Posted on: 12-07-2017