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TMI Blog2008 (2) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... J.-1. The Revenue is aggrieved by an order dated 1 st February, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench "F" in ITA No. 4803/Del/2002 relevant for the Assessment Year 1989-90. 2. The case has rather a chequered history beginning with the assessment order dated 18 th March, 1991 passed by the Assessing Officer under Section 143(3) of the Income Tax Act, 1961 (for short the Act). 3. It appears that the assessment order did not contain the computation of income under Section 115-J of the Act. The Assessee had computed a loss at Rs.46,65,746/- while determining the book profit for the purposes of Section 115-J of the Act but while arriving at this figure, the Assessee brought forward depreciation or loss that wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Assessee, the claim for this expenditure was made in the subsequent assessment year, that is, 1990-91 but in the assessment order for that year, the Assessing Officer held that the expenditure could not be allowed in the assessment year 1990-91, since it related to an earlier year. In view of this, the Assessee contended that the expenditure of Rs.41,14,955/- be allowed to the Assessee in the assessment year 1989-90 (the year under consideration). 8. The Assessing Officer rejected this contention of the Assessee on the ground that the order passed by the Commissioner under Section 263 of the Act on 15 th January, 1992 was on the limited issue of computing the profit under Section 115-J of the Act and, therefore, it was not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 1989-90 and concluded that the order passed by the Commissioner under Section 263 of the Act did not disentitle the Assessee from agitating any fresh issue that arose as a result of certain developments that had taken place in the meanwhile. It was held that for re-computing the book profit for the purposes of Section 115-J of the Act, the Assessing Officer could have looked into the facts as they existed on that day and, therefore, the Assessing Officer was not right in refusing to entertain the claim of the Assessee which arose out of the order passed in respect of the Assessee for the assessment year 1990-91. 13. Against the order passed by the CIT (A) on 31 st July, 2002, the Revenue preferred an appeal befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rstanding of the law, that where a claim is made by an assessee for considering an item for deduction during the course of the assessment proceedings, the Assessing Officer is duty bound to examine the claim on its merits. 16. In that case also, certain developments had taken place in the assessment proceedings for the subsequent year and taking that into consideration, the Madras High Court observed as follows: - "We are of the view that when the assessee made a claim for consideration of an item for deduction during the course of assessment proceedings, it is the duty of the Income-tax Officer to examine the claim on the merits of the claim. The present case is not a case where the assessee made a claim with reference to a matter wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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