2009 (10) TMI 572 - HC - Income Tax

Appeal industrial undertaking power of Tribunal to remand - assessee in her return filed for the assessment year 2003-04 had claimed deduction under section 80-IB of the Income-tax Act, 1961 in respect of Business started in the year 1997-98 . It could not be disputed by the learned counsel for the appellant that even when no claim was made for the assessment year 1997-98 in order to become eligible for such a claim for the assessment year 2003-04, it is necessary for the asses-see to establish that the assessee was entitled to such a claim for the assessment year 1997-98. What comes out from the aforesaid facts is that there should have been some finding by the authorities below that the conditions contained in section 80-IB were satisfied even in respect of 1997-98 especially when the Tribunal found that no such finding was arrived at either by the Assessing Officer or by the Commissioner of Income-tax (Appeals). - the approach of the Tribunal in remitting the case back to the Assessing Officer for determination of the question is without blemish and perfectly justified

Summary

Issues:
Claim for deduction under section 80-IB for assessment year 2003-04, Remittance of case back to Assessing Officer for determination of eligibility for deduction under section 80-IB for assessment year 1997-98, Dismissal of application under section 254(2) for correction in order by Tribunal, Challenge to Tribunal's decision to remit case back to Assessing Officer for determination.

Analysis:

1. Claim for deduction under section 80-IB for assessment year 2003-04:
The appellant claimed deduction under section 80-IB for the assessment year 2003-04, stating that she had started businesses in 1997-98 but claimed the deduction for the first time in 2003-04 due to ignorance of the law. The Commissioner of Income-tax (Appeals) allowed the deduction, but the Tribunal remitted the case back to the Assessing Officer to determine eligibility for the deduction for the assessment year 1997-98. The appellant challenged this decision, arguing that the Commissioner of Income-tax (Appeals) had already allowed the deduction based on the records provided. However, the Court found that specific findings regarding eligibility for the deduction in 1997-98 were lacking, leading to the Tribunal's decision being justified.

2. Remittance of case back to Assessing Officer for determination of eligibility for deduction under section 80-IB for assessment year 1997-98:
The Tribunal remitted the case back to the Assessing Officer to determine if the appellant was eligible for the deduction under section 80-IB for the assessment year 1997-98. The appellant argued that the Commissioner of Income-tax (Appeals) had already allowed the deduction based on the records, and the Tribunal's decision was unjustified. However, the Court observed that specific findings regarding eligibility for the deduction in 1997-98 were necessary, and the Tribunal's decision to remit the case was deemed appropriate.

3. Dismissal of application under section 254(2) for correction in order by Tribunal:
The appellant's application under section 254(2) for correction in the order was dismissed by the Tribunal. The appellant contended that the Assessing Officer should not sit over the Commissioner of Income-tax (Appeals)'s findings, as the deduction claim was found to be in order. However, the Court noted that the Commissioner of Income-tax (Appeals) did not provide specific findings on eligibility for the deduction in 1997-98, justifying the Tribunal's decision to remit the case for further examination.

4. Challenge to Tribunal's decision to remit case back to Assessing Officer for determination:
The appellant challenged the Tribunal's decision to remit the case back to the Assessing Officer for determination of eligibility for the deduction under section 80-IB for the assessment year 1997-98. The appellant argued that the Commissioner of Income-tax (Appeals) had already allowed the deduction based on the records, and the Tribunal's decision was unwarranted. However, the Court found that specific findings on eligibility for the deduction in 1997-98 were essential, supporting the Tribunal's decision to remit the case for further assessment.

In conclusion, the Court dismissed both appeals, finding no substantial question of law requiring consideration. The decision to remit the case back to the Assessing Officer for determination of eligibility for the deduction under section 80-IB for the assessment year 1997-98 was upheld, emphasizing the importance of specific findings to support the deduction claim.