NIPPON POWER LTD.,KOLKATA vs. I.T.O.WARD-12(3), KOLKATA

Assessment Year : 2016-2017 Nippon Power Limited 2. The assessee has taken five grounds of appeal, but its solitary grievance is that the ld. CIT(Appeals) has erred in denying deduction under section 80IA of the Income Tax Act amounting to Rs.1,73,72,926/-.

Brief facts of the case are that the assessee has filed its return of income on 17.10.2016. It claimed deduction under section 80IA of the Income Tax Act. This return was not selected for scrutiny assessment but processed under section 143(1) of the Income Tax Act on 13.01.2017. The return was accepted on the income declared by the assessee after claiming deduction under section 80IA. The assessee-company has filed an application on 19.07.2017 pleading therein that tax credit of Rs.11,262/- was not given to it. While dealing with this application of the assessee, ld. Assessing Officer has disallowed the deduction admissible under section 80IA on the ground that the assessee did not file audit report in Form 10CCB with the Income Tax return. Dissatisfied with this disallowance, the assessee carried the matter in appeal before the ld. CIT(Appeals) and submitted that the ld. Assessing Officer has not issued any notice while processing the return under section 154 on 13.01.2017. The ld. CIT(Appeals) did not accept the contention of the assesese and confirmed the order of the ld. Assessing Officer passed under section 154 of the Income Tax Act.

The ld. Counsel for the assessee has reiterated the submissions as was raised before the ld. 1st Appellate Authority.

On the other hand, ld. D.R. contended that since the assessee has filed an application for rectification of the apparent error, therefore, ld. Assessing Officer got an opportunity to consider the facts and made the disallowance of claim made under section 80IA on the ground that the report required to be submitted under section 80IA(4)(iv) was not submitted by the assessee.

We have duly considered the rival contentions and gone through the record carefully. The alleged order dated 13.01.2017 exhibiting the processment of return of assessee under section 143(1) was passed by the Computer on the basis of artificial intelligence. It could not detect any error in the accounts of the assessee and allowed the deduction. The assessee thereafter filed an application for grant of credit of TDS amounting to Rs.11,262/-. The whole details of the assessee were again processed by the computer and in this processment, the result came out by disallowance of a claim under section 80IA. We are of the view that in the second processment, the only issue which required to be gone into by the computer was, whether TDS credit

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on August 24, 2023.