2024 (9) TMI 746 - SCH - Income Tax

Revision u/s 263 by CIT - Deduction u/s 35D - assessee had wrongly claimed the deduction as it was not an industrial undertaking within the meaning of such expression as envisaged u/s 35D - As petitioner submitted that having regard to the subsequent developments in the case, the special leave petition may have been rendered infructuous - As decided by HC 2021 (10) TMI 1209 - KARNATAKA HIGH COURT claim which has been granted by the AO could not be disallowed subsequently, without disturbing the decision in the initial year. Post action of the AO in modifying the original order would not cure the flaw pointed out in Shasun Chemicals and Drugs Ltd. 2016 (9) TMI 1199 - SUPREME COURT this issue in favour of the assessee and against the Revenue. HELD THAT - This is because, in the order passed u/s 154 of the Income Tax Act (rectification order) which is against the Revenue for the year 2008-09, no challenge has been made to the relied upon judgment. Recording the same, the special leave petition stands disposed as infructuous.

Summary

The Supreme Court disposed of the special leave petition as infructuous due to subsequent developments in the case. No challenge was made to the rectification order under Section 154 of the Income Tax Act for the year 2008-09. Pending applications were also disposed of.