9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 255 - AT - Income TaxReopening of assessment u/s 147 - carbon credits sales addition and Section 43B disallowance of provisions of gratuity and leave encashment payments - HELD THAT - This tribunal s first round order dealing with the Revenue s appeal in Section 143(3) proceedings 2015 (9) TMI 642 - ITAT HYDERABAD has already decided the issue in Revenue s favour holding that such receipt is capital in nature as As legislature has inserted Section 115BBG in the Act vide Finance Act, 2017 w.e.f.01-04-2018 treating the said carbon credits as taxable income. We make it clear that we are in AY.2008-09 only. This is not in Revenue s case that the said statutory provision carries any retrospective effect. We thus hold that both the lower authorities have erred in law and on facts in treating the assessee s carbon credits receipts as taxable income. The impugned addition is directed to be deleted therefore. Whether the impugned re-opening is liable to be sustained in the facts of the instant case or not? - Assessing Officer s sole re-opening reason recorded to this effect dt.30-03-2013 goes contrary to the tribunal s landmark decision in My Home Power Ltd., Vs. DCIT 2012 (11) TMI 288 - ITAT HYDERABAD deciding the issue in assessee s favour as upheld in hon ble jurisdictional high court in CIT Vs. My Home Power Ltd., 2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT . The assessee s case in the light of hon ble apex court s landmark decision in GKN Driveshafts (India) Ltd., Vs. ITO, 2002 (11) TMI 7 - SUPREME COURT that all the facts invalidate the impugned re-opening as well since their lordships have made it clear that there are twin stages of posing challenge to correctness thereof i.e., by filing objections before the Assessing Officer at the threshold stage as well as during the course of scrutiny assessment s appeals. We follow the foregoing reason mutatis mutandis and hold that the impugned reasoning is also not sustainable as per law. The same stands quashed therefore. The assessee s third substantive ground raising the issue of correctness of 43B disallowance is rendered infructuous in above terms.
Issues:
1. Delay in filing appeal condonation 2. Validity of Section 147/148 proceedings 3. Challenge to lower authorities' actions on carbon credits sales addition and Section 43B disallowance Analysis: 1. The delay in filing the appeal was attributed to reasons beyond the assessee's control. The tribunal noted that there was no rebuttal from the department, and hence, the delay was condoned. 2. The appeal raised concerns regarding the validity of Section 147/148 proceedings and the correctness of the lower authorities' actions on carbon credits sales addition and Section 43B disallowance. The tribunal examined the issue of carbon credits sales addition, citing a previous order that held such receipts as capital in nature. The tribunal referred to legislative changes and concluded that the lower authorities erred in treating the receipts as taxable income. Consequently, the addition was directed to be deleted. 3. The tribunal also analyzed the re-opening of the assessment. It highlighted previous decisions and legal principles, including the need for the Assessing Officer to provide valid reasons for re-opening and the assessee's right to challenge the reasons recorded. The tribunal found the re-opening reason to be invalid and quashed the reasoning. As a result, the issue of Section 43B disallowance became irrelevant. 4. Ultimately, the tribunal allowed the assessee's appeal, pronouncing the order on 6th May 2021.
|
