M/S HAVMOR ICE CREAM PRIVATE LIMITED vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), AHMEDABAD

TAXAP/484/2022HC GujaratGJHC24048955202212 September 2022Author: HONOURABLE MR. JUSTICE N.V.ANJARIA,HONOURABLE MR. JUSTICE BHARGAV D. KARIA10 pages
AI SummaryDismissed

What were the facts?

The assessee, M/s Havmor Ice Cream Private Limited, filed its return of income for Assessment Year 2013-14, declaring a total income of Rs. 9,72,28,342/-, later revised to Rs. 9,75,49,336/-. During scrutiny assessment, the Assessing Officer made a disallowance of interest expenditure amounting to Rs. 15,52,172/-. The assessee appealed to the Commissioner of Income Tax (Appeals), who dismissed the appeal on October 12, 2017, affirming the disallowance. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT) seeking deduction under Section 80IB(11A) of the Income Tax Act, 1961. The ITAT confirmed the decisions of the lower authorities, relying on a Gujarat High Court judgment. The present Tax Appeal is filed against the ITAT's order dated March 30, 2022.

What did the High Court hold?

The High Court held that the appeal is meritless and no substantial question of law arises. The Court relied on the decision of this Court in Rachna Infrastructure Pvt. Ltd. vs. Principal Commissioner of Income Tax, which in turn relied on the Bombay High Court's decision in EBR Enterprises vs. Union of India. These decisions clearly state that as per Section 80A(5) of the Income Tax Act, 1961, if an assessee fails to make a claim for deduction under specified provisions (including Section 80IB) in its return of income, no such deduction shall be allowed. The Court emphasized that this statutory provision is a bar and cannot be overcome by the general powers of revision under Section 264 of the Act or by judicial interpretation that might have existed prior to the insertion of Section 80A(5). Therefore, the Tribunal was correct in confirming the disallowance of the deduction under Section 80IB(11A) because the claim was not made in the original return of income. The appeal is summarily dismissed.

What were the issues?

1. Whether the Appellant Company is entitled to deduction under Section 80-IB(11A) of the Income Tax Act, 1961, even though the claim for deduction was not made in the return of income as required by Section 80A(5) of the Act? Assessee's Contention: The assessee argued that the Tribunal erred in not allowing the deduction under Section 80IB(11A) solely on the ground that the claim was not made in the original return of income, contending that it was entitled to the deduction. Revenue's Contention: The judgment does not explicitly record the revenue's specific arguments. However, the revenue's position was upheld by the lower authorities and the Tribunal, which relied on judicial precedents disallowing such claims if not made in the return.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80IB(11A),Section 80A(5),Section 264

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/484/2022 ORDER DATED: 12/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 484 of 2022 ========================================================== M/S HAVMOR ICE CREAM PRIVATE LIMITED Versus DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1)(1), AHMEDABAD ========================================================== Appearance: MR DHINAL A SHAH(12077) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA and HONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 12/09/2022

ORAL ORDER (PER : HONOURABLE MR. JUSTICE N.V.ANJARIA) Heard learned advocate Mr. Dhinal A Shah for the appellant.

2.

The present Tax Appeal under Section 260A of the Income Tax Act, 1961, arise out of order dated 30.03.2022 passed by the Income Tax Appellate Tribunal, 'C' Bench, Ahmedabad in Income Tax Appeal No. 2866 of 2017 in respect of Assessment Year 2013-

14.3.

The appellant-assessee

was a company manufacturing ice-cream and related product. Return of income for the Assessment Year

The order continues below.

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