2011 (5) TMI 1113 - AT - Income Tax

Summary

Issues Involved: Disallowance of excise duty claim u/s 148 of the Income Tax Act, 1961 for Assessment Year 2003-04.

Issue 1: Disallowance of Excise Duty Claim

The appellant, a private limited company, filed a return of income declaring a total loss. The Assessing Officer disallowed the excise duty claim of Rs. 12,96,995 paid in relation to processing charges from Steel Authority of India. The appellant contended that the claim was not allowed based on a Supreme Court decision, which was not applicable in their case as it was the first assessment and not a reassessment. The CIT(A) upheld the disallowance, stating that the return had been accepted and processed u/s 143(1), and no revised return had been filed within the time limit. The CIT(A) emphasized that the reopening of assessment is for the benefit of revenue and does not allow for additional claims. The appellant appealed, arguing that new claims could be made in the first assessment u/s 147. The Tribunal found that the excise duty claim was disallowed based on the Supreme Court judgment in Sun Engineering Works Pvt. Ltd., which prohibits fresh claims in reassessment proceedings. The Tribunal dismissed the appeal, affirming the disallowance of the excise duty claim.

Issue 2: Additional Grounds Raised

The appellant raised additional grounds challenging the consideration of conversion charges, the accounting system followed, and the application of the judgment in the case of Commissioner of Income Tax vs. Sun Engineering Works (P) Ltd. The appellant also sought a reduction in conversion charges by excluding excise duty from the total income. The Tribunal considered these additional grounds but ultimately dismissed the appeal, upholding the disallowance of the excise duty claim.

This judgment by the Appellate Tribunal ITAT Mumbai addressed the disallowance of an excise duty claim by a private limited company for the Assessment Year 2003-04. The Tribunal analyzed the applicability of the Supreme Court judgment in Sun Engineering Works Pvt. Ltd. regarding fresh claims in reassessment proceedings and concluded that the claim could not be entertained. The Tribunal dismissed the appeal, affirming the disallowance of the excise duty claim and emphasizing the limitations on making new claims in the assessment process.