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TMI Blog2019 (1) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... t it is injustice to deny the claim by appellate authorities who are permitted to entertain the fresh claim, when assessee makes the bonafide claim. The assessee’s case is squarely covered by the decision in the case of CIT Vs. G.M.Knitting Industries Pvt. Ltd. [2015 (11) TMI 397 - SUPREME COURT] as well as the decision of Hon’ble Delhi High Court in the case of Vedanta Ltd. [2018 (5) TMI 355 - DELHI HIGH COURT] and we hold that the assessee is entitled for the deduction u/s 80IA. Accordingly, we direct the AO to allow the deduction u/s 80IA of the Act. For the quantum of deduction, compliance of statutory requirements for claiming the deduction u/s 80IA was not discussed in the assessment order. Therefore, we remit the matter back to the file of the AO for limited issue of deciding the quantum of deduction and for obtaining the required details such as audit report etc. before allowing the deduction. Accordingly we direct the AO to verify the documents placed by the assessee during the assessment proceedings and allow the eligible deduction u/s 80IA. - Decided in favour of assessee for statistical purpose. - I.T.A.No.276/Viz/2018 - - - Dated:- 3-1-2019 - SHRI V. DURGA R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n response to the questionnaire issued by the AO, the assessee has furnished written submissions and during the assessment proceedings, the AO observed that the assessee did not claim the deduction u/s 80IA in the original return as well as in the return filed in response to the notice issued u/s 153A, and there was computation mistake. When the assessee was asked to clarify the mistake and explain why there was nil income, the assessee made submission stating that the assessee is owning captive power plant and the undertaking is eligible for deduction u/s 80IA of the Act and due to inadvertent mistake, the assessee did not claim the deduction u/s 80IA in the return filed in response to the notice issued u/s 153A. The assessee further submitted that it has complied with all the requirements to be eligible for claiming deduction u/s 80IA of the Act, thus requested to allow the deduction. The assessee also filed a revised return of income on 17.12.2016 claiming deduction u/s 80IA of the Act and relied on the following decisions : (a) CIT Vs. Ramco International reported in 221 CTR 0491, High Court of P H. (b) Chicago Pneumatic India Ltd. Vs. Deputy Commissioner of Income Tax, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee s own case for the A.Ys 2012-13 and 2015-16 in I.T.A No.293-296/Viz/2018. Accordingly the appeal of the assessee on this ground is allowed and the AO is directed to recompute the income relating to captive power plant estimating the consumption of husk expenditure @10% of total husk consumption as decided in our earlier order. 8. The assessee filed the return of income originally for the A.Y. 2010-11 on 30.09.2010 declaring total income of ₹ 67,08,152/- and no deduction was claimed under Chapter-VIA, thus there was no claim of deduction u/s 80IA of the Act in the original return. In response to the notice issued u/s 153A, the assessee filed the return of income declaring nil income and also did not claim the deduction u/s 80IA under Chapter VIA of the Act. The assessee placed copy of acknowledgement as well as the statement of computation of income both for the return filed in response to notice u/s 153A as well as the revised return filed during the course of assessment proceedings. On careful verification of the return of income filed u/s 153A, it is observed that there was mistake in computation of income and it resulted in nil taxable income. Thus, there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome and the Government is not permitted to collect the taxes more than what was due from the assessee. It is settled issue that even if the AO is not permitted to entertain the fresh claim, the assessee is not barred from making additional claim before the appellate authorities and the appellate authorities are permitted to entertain the genuine additional claims in the interest of justice as held by the Hon ble Supreme Court in the case of Goetze(India) Ltd. Vs. CIT (2006) [284 ITR 323 (SC)]. Hon ble Delhi High Court in the case of Vedanta Ltd. Vs. Pr.CIT-9, New Delhi (2018) 93 Taxman.com 392 also held in connection with the additional depreciation that the AO is bound to allow the additional depreciation, whether there was a claim or not. Similarly Hon ble Supreme Court in the case of CIT Vs. G.M.Knitting Industries Pvt. Ltd. (2016) 71 Taxman.com 35 held that additional claim made by the assessee required to be allowed before finalizing the assessment proceedings. In the case cited (supra), the Hon ble Supreme Court concurred with view that even if the assessee did not file form 3AA along with the return and filed during the assessment proceedings and before the final order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we are of the considered opinion that it is injustice to deny the claim by appellate authorities who are permitted to entertain the fresh claim, when assessee makes the bonafide claim. The assessee s case is squarely covered by the decision of Hon ble Supreme Court in the case of CIT Vs. G.M.Knitting Industries Pvt. Ltd. (supra) as well as the decision of Hon ble Delhi High Court in the case of Vedanta Ltd. (supra) and we hold that the assessee is entitled for the deduction u/s 80IA. Accordingly, we direct the AO to allow the deduction u/s 80IA of the Act. However, the quantum of deduction, compliance of statutory requirements for claiming the deduction u/s 80IA was not discussed in the assessment order. Therefore, we remit the matter back to the file of the AO for limited issue of deciding the quantum of deduction and for obtaining the required details such as audit report etc.. before allowing the deduction. Accordingly we direct the AO to verify the documents placed by the assessee during the assessment proceedings and allow the eligible deduction u/s 80IA. It is needless to say that the AO is required to give opportunity to the assessee. The appeal of the assessee on this gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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