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2014 (1) TMI 1635 - AT - Income TaxDeduction u.s 80IA - profit of power plant -revised return - CIT (A) rejected the claim of the assessee by holding that claim u/s 80IA cannot be allowed by filing a letter during the assessment proceedings - Held that - Commissioner of Income Tax Vs. Jai Parabolic Springs Ltd. 2008 (4) TMI 3 - HIGH COURT OF DELHI , Jute Corporation of India Ltd. Vs. CIT 1990 (9) TMI 6 - SUPREME Court , Commissioner of Income Tax Vs. Rose Services Apartment India P. Ltd. 2009 (2) TMI 483 - Delhi High Court and CIT Vs. Jindal Saw Pipes Ltd. 2010 (9) TMI 45 - DELHI HIGH COURT - Matter remanded back - Decided in favour of assessee.
Issues:
1. Disallowance of deduction under section 80IA for profit of power plant. 2. Claiming deduction during assessment proceedings without filing revised return. 3. Reasonable opportunity of hearing not granted to the assessee. Issue 1: Disallowance of deduction under section 80IA for profit of power plant: The appeal challenges the disallowance of a deduction under section 80IA for the profit of the power plant. The CIT (A) upheld the disallowance, stating that the claim should have been made through a revised return under section 139(5) of the Act. The issue revolves around whether the claim can be allowed during assessment proceedings without filing a revised return. The Tribunal referred to a similar case decided by the jurisdictional High Court, where it was held that such claims can be reconsidered on merits by the Assessing Officer. The Tribunal, in line with the High Court decision, accepted the plea of the assessee and remanded the issue to the Assessing Officer for a decision on merits regarding the claim under section 80IA. Issue 2: Claiming deduction during assessment proceedings without filing revised return: The main contention here is whether the assessee can claim deductions, like under section 80IA, during assessment proceedings without filing a revised return under section 139(5) of the Act. The Tribunal referred to various legal precedents and emphasized that the power of the Tribunal in dealing with appeals is extensive. It highlighted that the Tribunal has the discretion to allow new grounds to be raised and consider questions of law arising in assessment proceedings, even if not raised earlier. The Tribunal distinguished a Supreme Court decision related to the power of the assessing authority from its own power to entertain claims for deduction. Ultimately, the Tribunal dismissed the appeal, maintaining that the Tribunal's jurisdiction is comprehensive and assimilates issues from lower authorities. Issue 3: Reasonable opportunity of hearing not granted to the assessee: The appeal also raised concerns about the reasonable opportunity of hearing not being granted to the assessee. However, the judgment primarily focuses on the substantive issues related to the disallowance of the deduction under section 80IA and the procedural aspect of claiming deductions during assessment proceedings without filing a revised return. The Tribunal's decision to remand the issue to the Assessing Officer for a decision on merits implies that the procedural aspect of the hearing may be addressed during the reassessment process. In conclusion, the judgment addresses the disallowance of a deduction under section 80IA for the profit of the power plant and the procedural question of claiming deductions during assessment proceedings without filing a revised return. It emphasizes the Tribunal's broad powers in dealing with appeals and the need to consider questions of law arising in assessment proceedings. The decision ultimately remands the issue to the Assessing Officer for a decision on merits, aligning with a similar decision by the jurisdictional High Court.
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