JINDAL INTELLICOM LTD.,NEW DELHI vs. ITO, NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] - V, New Delhi dated 24.02.2015 pertaining to A.Y 2010-11.

The sum and substance of the grievance of the assessee is that the CIT(A) erred in not considering the new ground/additional claim made by the assessee.

It is the say of the assessee that the claim arose because of the decision of the Hon'ble Karnataka High Court in the case of Yokogawa India Ltd 341 ITR 385 which entitled the assessee for exemption u/s 10A of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'].

Facts on record show that the order pronounced by the Hon'ble Karnataka High Court is dated 09.08.2011 whereas the assessee had filed its return of income on 21.09.2010. Records further show that when the assessee made claim of deduction u/s 10A of the Act, the same was denied by the AO who drew support from the judgement of the Hon'ble Supreme Court in the case of Goetz India Ltd 284 ITR 223 which laid down the ratio that the AO cannot entertain a claim of deduction otherwise than by filing a revised return and since the assessee has not filed any revised return in respect of claiming deduction u/s 10A of the Act, the same was denied.

We find that the first appellate authority also heavily relied upon the said judgment of the Hon'ble Supreme Court. In our considered opinion, the said judgment does not put any fetters on the appellate authority in entertaining legal claims which the assessee is eligible for. In the interest of justice and fair play, we restore this issue to the file of the AO. The AO is directed to entertain the claim of deduction u/s 10A of the Act in the light of judgment given in the case of Yokogawa India Limited [supra] and decide the issue as per the provisions of law after giving reasonable opportunity of being heard to the assessee.