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2019 (5) TMI 108 - HC - Income TaxEligible for deduction u/s 80HH/80IA - Delay of filing the cross objection 496 days - alternate prayer seeking relief under Section 80 IA - HELD THAT - We find that the claim of the Appellant for deduction under Section 80 IA had not been properly considered and consequently, we hold that it would only be just and proper that the matter is remitted back to the Tribunal for fresh consideration on that aspect alone. We are keeping the issue of grant or otherwise of benefit under Section 80 HH open. It will be permissible for any of the parties to approach the High Court again to raise the issue of claim for benefit under Section 80 HH if deemed necessary, on order being passed by the Tribunal on this remand order and on the claim under Section 80 IA. Consequently, keeping the issue relating to Claim of benefit under Section 80 HH open,the matter is remitted back to the Tribunal to decide the claim for benefit under Section 80IA of the Act.
Issues involved:
1. Challenge to the order of the Tribunal regarding deduction under Section 80HH of the Income Tax Act for Assessment Years 1995-1998. 2. Challenge to the dismissal of applications to condone the delay in filing cross objections. Issue 1: Challenge to deduction under Section 80HH: The Assessee filed Tax Case Appeals challenging the Tribunal's order denying deduction under Section 80HH for the Assessment Years 1995-1998. The Assessee had set up an Industrial unit in a backward area and claimed deduction under Section 80HH. Despite the area being denotified later, Circular No.484 stated that existing undertakings would continue to receive benefits. The Assessee shifted its factory to a new location within the same backward area and claimed extension of benefits. The Tribunal rejected the claim, leading to the appeal. The CIT (Appeals) rejected the claim under Section 80HH but did not address the alternate claim under Section 80IA. The Tribunal dismissed the Assessee's cross objections filed after a delay of 496 days, citing lack of satisfactory reasons for the delay. The High Court noted the failure to address the claim under Section 80IA and remitted the matter back to the Tribunal for fresh consideration. Issue 2: Delay in filing cross objections: The Assessee filed cross objections after a delay of 496 days, explaining the reasons for the delay in an affidavit. The Tribunal dismissed the cross objections as time-barred, finding the reasons provided unsatisfactory. The High Court observed that the Tribunal did not adequately address the alternate claim under Section 80IA and remitted the matter back for reconsideration. The delay in filing cross objections was attributed to the Assessee's belief that the issue could be raised during the appeal by the Department, leading to the delay. The High Court emphasized the need for proper consideration of the Assessee's claim under Section 80IA and directed the Tribunal to decide on this aspect within six months. Conclusion: The High Court's judgment addressed the challenges related to deduction under Section 80HH and the delay in filing cross objections. It highlighted the importance of considering the Assessee's alternate claim under Section 80IA and remitted the matter back to the Tribunal for fresh consideration. The Court emphasized the need for a thorough examination of all relevant claims and directed the Tribunal to decide on the issues within a specified timeframe.
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