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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A.MOHAN ALANKAMONY
आदेश / O R D E R
Per A. Mohan Alankamony, AM:-
The appeal by the Revenue is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-1,
CO No.62/Chny/2018 Coimbatore dated 14.11.2017 in Appeal No.28/15-16 for the assessment year 2012-13 passed U/s.250(6) r.w.s. 143(3) of the Act. The assessee has also raised cross objections in support of the order of the Ld.CIT(A).
Revenue’s Appeal:- The Revenue has raised five grounds in its appeal however the crux of the issue is that the Ld.CIT(A) has erred in directing the Ld.AO to admit the fresh claim of deduction claimed in the course of the assessment proceedings with respect to mark to mark loss provisions written back, loss on cancellation of forward contracts incurred during the financial year 2011-12 and deduction U/s.80IA of the Act by giving due weightage to the statutory form No.10CCB filed during the course of assessment proceedings.
The brief facts of the case are that the assessee is a limited company engaged in the business of manufacturing of steel and alloy steel castings, filed its return of income for the assessment year 2012-13 on 28.09.2012 admitting total income of Rs.29,67,24,050/- under normal provisions and book profit of Rs.28,15,50,064/- under Section 115JB of the Act. Initially the CO No.62/Chny/2018 return was processed U/s.143(1) of the Act and subsequently the case was selected for scrutiny under CASS and notice U/s.143(2) of the Act was issued on 23.09.2013. Finally assessment order was passed U/s.143(3) of the Act on 17.03.2015 wherein the Ld.AO refused to entertain the fresh claim made during the course of assessment proceedings with respect to mark to mark loss provisions written back, loss on cancellation of forward contracts incurred during the financial year 2011-12 and deduction U/s.80IA of the Act by giving due weightage to the statutory form No.10CCB filed during the course of assessment proceedings by relying in the decision of the Hon’ble Apex Court in the case Goetze India Ltd Vs. CIT reported in 284 ITR 323 by holding that deductions can be claimed only by filing a reverse return of income.
On appeal the Ld.CIT(A) granted relief to the assessee by directing the Ld.AO to admit the fresh claim made before the Ld.AO during the course of assessment proceedings by relying in the very same decision rendered by the Hon’ble Supreme Court in the case Goetze India Ltd vs. CIT cited supra and the decision of the Hon’ble Madras High Court in the case CIT Vs. Abhinitha Foundation (P) Ltd., reported in TC(A) No. 811 of 2016 dated
CO No.62/Chny/2018 06.06.2017 wherein in para 18 of the judgment the following observations are made:- “ In sum, what emerges from a perusal of the ratio of the judgments cited above, in particular, the judgments rendered by the Supreme Court in GOETZE’s case and National Thermal Power Co. Ltd.’s case, and those, rendered by the Division Bench of this Court in Ramco Cements Ltd. and CIT vs. Malind Laboratories Pvt. Ltd., as also the judgments of the Delhi High Court in Sam Global Securities Ltd.’s case and Jai Parabolic Springs Ltd.’s case, that even if, the claim made by the assessee company does not form part of the original return or even the revised return, it could still be considered, if, the relevant material was available on record, either by the appellate authorities, (which includes both the CIT(A) and the Tribunal) by themselves, or on remand, by the Assessing Officer.”
At the outset we find merit in the order of the Ld.CIT(A), who has rightly relied in the decision of the higher and apex judiciaries. Moreover the Hon’ble Apex Court in the case National Thermal Power Company Ltd., vs. CIT reported in 229 ITR 383 has categorically held that the Tribunal has jurisdiction to decide on the question of law arising from the facts found by the Income Tax Authorities having bearing on the tax liability of the assessee. Drawing strength from the same, we hereby direct the Ld.AO to admit the fresh claim made by the assessee in the course of assessment proceedings and adjudicate the same in accordance with law and merit after affording enough opportunity of being heard. Accordingly we hereby hold that the appeal of the Revenue
CO No.62/Chny/2018 is devoid of merits. Since the cross objections raised by the assessee are in support of the order of the Ld.CIT(A), the same is allowed to the extent relief granted in the Order of the Ld.CIT(A).
In the result the appeal of the Revenue is dismissed and the cross objections of the assessee are allowed as indicated herein above.
Order pronounced on the 15th October, 2018 at Chennai.