9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 351 - HC - Income TaxDeduction u/s 80IB 10 - denying the deduction u/s 80IB 10 on the ground that the assessee had withdrawn the claim of deduction under Section 80IB 10 vide its letter dated 29.12.2008 - HELD THAT - Denial of the claim on hyper technicalities would cause injustice to the assessee. Further, the submission of the learned senior counsel that the scrutiny assessment order made under Section 143 3 relating to the same project for the assessment year 2007-08, where deduction under Section 80IB 10 of the Act has been extended by the Assessing Officer and the same has been reached finality also merits consideration - we are of the considered view that the entire exercise made by the Authorities in denying the deduction under Section 80IB 10 is based on the revision return said to have been filed by the assessee withdrawing the claim of deduction under 80IB but the document now placed before the Court said to be the revised return dated 24.12.2008, would indicate that the deductions under Chapter VI-A Schedule 10 were claimed by the assessee. The proceedings of the Authorities and the Tribunal warrants interference so as to ascertain the genuineness of this return said to have been filed by the assessee, in the light of Section 80AC of the Act. Hence, without expressing any opinion on the substantial questions of law raised by the assessee, we deem it appropriate to restore the matter to the file of the Assessing Officer to re-examine the matter on the deduction claimed by the assessee under Section 80IB 10 with respect to return dated 24.12.2008 vis- -vis Section 80AC of the Act and the settled legal principles holding the field on the subject matter of Section 80IB 10 of the Act.
Issues:
1. Denial of deduction under Section 80IB[10] of the Income Tax Act, 1961. 2. Jurisdiction based on consent and Board Circular. 3. Denial of deduction without considering subsequent assessment year. 4. Charging interest under Section 234B and 234C. Analysis: Issue 1: Denial of deduction under Section 80IB[10] The appellant, a private limited company engaged in land development and construction, filed for deduction under Section 80IB[10] for the assessment year 2006-07. The assessing officer denied the deduction citing withdrawal of the claim in a revised return. The Commissioner of Income Tax [Appeals] and the Tribunal upheld this denial. The appellant argued that the denial was based on technicalities and that the revised return still claimed the deduction. The High Court found merit in this argument and remanded the matter to the Assessing Officer for re-examination. Issue 2: Jurisdiction based on consent and Board Circular The appellant contended that consent cannot confer jurisdiction, and the Tribunal should have considered the claim of deduction under Section 80IB[10] despite any consent given. The High Court referred to Section 80AC of the Act, emphasizing that no deduction shall be allowed unless a return is furnished. The Court noted that denial based on technicalities would be unjust and ordered a re-examination of the deduction claim. Issue 3: Denial of deduction without considering subsequent assessment year The appellant highlighted that the deduction under Section 80IB[10] was granted for the subsequent assessment year 2007-08 on the same project, which the Assessing Officer accepted. The High Court considered this discrepancy and directed the Assessing Officer to review the deduction claim for the assessment year 2006-07 in light of the subsequent year's treatment. Issue 4: Charging interest under Section 234B and 234C The High Court did not delve into the specifics of charging interest under Section 234B and 234C in the judgment, as the focus was primarily on the denial of deduction under Section 80IB[10]. Therefore, the matter of charging interest was not addressed in the detailed analysis provided by the Court. In conclusion, the High Court allowed the appeal in part, set aside the orders of the Tribunal and lower authorities, and remanded the case to the Assessing Officer for a fresh examination of the deduction claim under Section 80IB[10] for the assessment year 2006-07. The Court emphasized the importance of considering the facts and legal provisions without being bound by technicalities, ensuring a just outcome for the appellant.
|
