9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 1039 - HC - Income TaxReopening of assessment u/s 147 - deduction u/s 80IA - HELD THAT - Proceeding under Section 148 were not issued based on revenue audit objection, hence, the appeal filed by the appellant before the ITAT has rightly been dismissed under the CBDT circular No. 03/2018 dated 11.07.2018. The first appellate authority has also held that aforesaid notice u/s 148 was issued on 03.03.2014 i.e. after four years from the end of the assessment year 2007 08. This notice nowhere says that it is issued based on revenue audit objection, hence, this case does not fall under exception 10(c) of Circular No.03/2018 dated 11.07.2018. ITAT has not committed any error of law by dismissing the MA filed for recalling of the consolidated order dated 22.08.2019 disposed of relying on circular No. 03/2018 dated 11.07.2018
Issues:
1. Disallowance of deduction under Section 80IA by assessing authority. 2. Reopening of assessment for the assessment year 2007-08 based on revenue audit objection. 3. Dismissal of appeal by ITAT due to monetary limit of appeals. 4. Appeal for recalling of ITAT order based on revenue audit objection. Issue 1: Disallowance of deduction under Section 80IA The respondent, a private limited company, constructed a road under a government contract and claimed deduction under Section 80IA for infrastructure projects. The assessing authority disallowed part of the deduction, leading to an appeal process. The appellate authority set aside the assessment order, stating that the reassessment was time-barred and audit objections cannot be a ground for reopening assessments. The appellant challenged this decision before ITAT, leading to further legal proceedings. Issue 2: Reopening of assessment based on revenue audit objection The assessing authority issued notices under Section 142(1) and Section 148 to the respondent, alleging under-assessment due to deduction claims and non-disclosure of material facts. The appellant argued that if the reopening was based on revenue audit objections, the monetary limit circular would not apply. However, the notices did not explicitly mention revenue audit objections, leading to dismissal of the appeal by ITAT under the CBDT circular. Issue 3: Dismissal of appeal by ITAT due to monetary limit The ITAT dismissed all appeals, including the appellant's, based on the monetary limit circular issued by the Ministry of Finance. The appellant filed a Miscellaneous Application for recalling the order, arguing that the show-cause notice was based on revenue audit objections and should be decided on merit. However, ITAT upheld the dismissal, stating that the notice under Section 148 did not mention revenue audit objections, hence falling within the monetary limit circular. Issue 4: Appeal for recalling of ITAT order based on revenue audit objection The appellant contended that the notice under Section 148 was based on revenue audit objections, exempting it from the monetary limit circular. However, the first appellate authority and ITAT found no mention of revenue audit objections in the notice, leading to the dismissal of the appeal. The court concluded that no substantial question of law was involved and dismissed the appeal. Overall, the judgment delves into the disallowance of deductions, reopening of assessments, application of monetary limits on appeals, and the significance of revenue audit objections in tax proceedings. The legal analysis highlights the procedural intricacies and interpretations of tax laws governing such disputes.
|
