9911796707
TMI Blog2013 (5) TMI 1046X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in law and facts in confirming the action of Ld. AO in considering the TUF subsidy reimbursement of Rs.6.24.390.00 as Interest from Investments Income while calculating deduction u/s 80 HHC of the Income Tax Act. 2. Rectification u/s 154 of the Act is null and void when it is applied when the case was assessed u/s 143(3) of the Act and the issue was discussed. Here it is not correction of mistake but applying own judgment and view point. By the Ld. AO." 3. The only issue arising in the present appeal is against the order passed under section 154 of the Act. 4. The brief facts relating to the case are that original assessment in the case was completed vide order passed under section 143(3) of the Act dated 24.2.2006. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for a certain period and if the payment is realized before that due date, interest is refunded. Therefore, Rs.3,90,802/- is the interest refunded and Rs.6,24,290/- is the interest reimbursed on account of TUF Subsidy. Since the assessee has not earned interest out of any investments made by him or by deploying any of its idle funds the ratio of as quoted by your honour in the case of Rani Paliwal Vs. CIT 208 ITR 220 does not hold good in our case. Rejecting the explanation of the assessee the Assessing Officer recomputed deduction under section 80HHC of the Act at Rs.20,31,028/- as against originally computed deduction under section 80HHC of the Act at Rs.20,69,011/-. The CIT (Appeals) upheld the order of the Assessing Officer. 5. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer in the final analysis had recomputed deduction under section 80HHC of the Act and as against the claim of the assessee at Rs.24,84,730/-, the deduction under section 80HHC of the Act was allowed at Rs.20,69,011/-. The Assessing Officer further issued notice under section 154 of the Act in relation to the interest received by the assessee which as per the Assessing Officer was to be deducted from the profits of business while computing deduction under section 80HHC of the Act. The nature of the interest credited to the books of account of the assessee was Rs.6,24,390/- being reimbursement of interest under TUF scheme of the Ministry of Textiles Company and balance of Rs.3,09,802/- being the refund of interest excess cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
