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Issues Involved:
The judgment involves challenges against the order of the ld. CIT(A)-III, Lucknow dated 09.08.2010 for the assessment year 2006-07. The issues include the denial of deduction u/s. 80P(2)(a)(iii) of the IT Act, additions made by the Assessing Officer, acceptance of additional grounds and evidences, rectification order u/s. 154, and the subsequent withdrawal of appeals. Additions Made by Assessing Officer: The Assessing Officer passed an exparte assessment order u/s. 144, determining the total income of the assessee at Rs.99,69,050/- due to non-appearance of the assessee. Various additions were made, including amounts payable for stock, cane price, other dues, other expenses, and management expenses. The assessee claimed exemption u/s. 80P(2)(a)(iii) of the IT Act, which was rejected by the Assessing Officer. The ld. CIT(A) admitted additional grounds and evidences, ultimately deleting all five additions based on reasons such as proper record maintenance and lack of disallowed purchases. The ld. CIT(A) found the addition of other dues unjustified due to heavy closing balance and deleted the addition of other expenses considering the cooperative society's principles of mutuality. The addition of Rs.1,00,000/- was also deleted as not excessive compared to the previous year. Rectification Order u/s. 154 and Withdrawal of Appeals: The assessee filed a rectification application u/s. 154, which was accepted by the Assessing Officer, allowing the returned loss of Rs.8,77,130/-. Consequently, the appeal of both the assessee and the department became infructuous. The ld. Counsel for the assessee requested to withdraw the appeal, which was supported by the rectification order dated 30.03.2012. The claim of the assessee for deduction u/s. 80P(2)(a)(iii) was not allowed as the return was filed at a loss, which was accepted by the Assessing Officer. Decision and Dismissal of Appeals: The Tribunal dismissed the appeal of the assessee as withdrawn, as the rectification order satisfied all grounds raised in the appeal. The departmental appeal was also dismissed as infructuous, as the Assessing Officer accepted the claim of the assessee in the rectification order. The ld. CIT(A)'s deletion of additions on merits was upheld, and no justification was found to interfere with the order. The departmental appeal had no merit in light of the rectification order and the reasons provided by the ld. CIT(A) for deleting the additions. Consequently, both the appeal of the assessee and the departmental appeal were dismissed. *Order pronounced in the open court.*
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