9911796707
|
Home
Issues:
Appeal against order under section 263 of the Income-tax Act for AY 2003-04 regarding deduction under section 80HHC for quota sales as export incentives. Analysis: The appeal was against the order of the Commissioner of Income-tax under section 263 of the Income-tax Act for the assessment year 2003-04. The assessee claimed deduction under section 80HHC, including a sum for quota sales as export incentives. The Commissioner found the assessment order erroneous and set it aside for a de novo assessment. The assessee argued that the Central Board of Direct Taxes Circular supported their claim for deduction. The Departmental representative contended that the Assessing Officer did not apply his mind to the deduction issue. The ITAT Chennai Bench, after reviewing the submissions and the Circular, held that the assessment order was not erroneous. They reasoned that since the Circular was available and the deduction was accepted, it cannot be said that the Assessing Officer did not apply his mind. They emphasized that non-application of mind to income items would be an error, but in this case, the Circular guided the claim. The ITAT agreed with the Departmental representative that the Circular's existence made further details unnecessary from the assessee. Consequently, they set aside the Commissioner's order under section 263 and reinstated that of the Assessing Officer. In conclusion, the ITAT Chennai allowed the appeal filed by the assessee, finding no error in the assessment order and emphasizing the relevance of the Central Board of Direct Taxes Circular supporting the deduction claim. The judgment was delivered on January 19, 2010.
|
