THE COMMISSIONER OF INCOME TAX vs. M/S AXA BUSINESS

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ITA/139/2013HC KarnatakaKAHC01017363201309 October 2013Bench: B.MANOHAR,DILIP B.BHOSALE4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court allowed the assessee to file a revised return of income claiming set-off of loss from its UK branch within four weeks. The appropriate authority was directed to consider the condonation of delay and the revised return expeditiously, taking into account the time spent in litigation.

What were the facts?

The Revenue appealed against an ITAT order that confirmed an earlier order allowing the assessee to make an additional claim for deduction. The core issue was whether an assessee could file a revised computation for an additional claim without filing a revised return.

What were the issues?

Whether an assessee can make an additional claim for deduction by filing a revised computation instead of a revised return. The court also considered the condonation of delay for filing a revised return.

Which sections of the Income-tax Act were involved?

Section 119(2)(b)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 9TH DAY OF OCTOBER 2013

PRESENT

THE HON’BLE MR. JUSTICE DILIP B BHOSALE

AND

THE HON’BLE MR. JUSTICE B MANOHAR

ITA.NO.139/2013 BETWEEN

1.

THE COMMISSIONER OF INCOME TAX C.R. BUILDING, QUEENS ROAD BANGALORE

2.

THE DY. COMMISSIONER OF INCOME TAX CIRCLE-11 (1), RASHTROTHANA BHAVAN NRUPATHUNGA ROAD, BANGALORE ... APPELLANTS

(BY SRI K V ARAVIND, ADV.,)

AND

M/S AXA BUSINESS SERVICES PVT LTD NO.16/2, RESIDENCY ROAD BANGALORE-560 025

... RESPONDENT

(BY SRI S PARTHASARATHI & SRI MALHARA RAO, ADVS.,)

THIS ITA FILED UNDER SEC.260-A OF I.T. ACT, 1961, ARISING OUT OF ORDER DATED 09/11/2012 PASSED IN ITA NO.72/BANG/2012, FOR THE ASSESSMENT YEAR 2007-2008, & PRAYS THIS HON'BLE COURT TO: I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED

2 THEREIN, II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA NO.72/BANG/2012 DATED 09/11/2012 CONFIRMING THE ORDER OF THE APPELLATE COMMISSIONER AND CONFIRM THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-11(1), BANGALORE.

THIS ITA COMING ON FOR ADMISSION, THIS DAY, DILIP B. BHOSALE J. DELIVERED THE FOLLOWING:

PC:

Heard the learned counsel for the parties.

2.

Short question raised in this appeal is whether an assessee can file revised computation for making additional claim for deduction other than filing a revised return of income. In other words, whether in the course of scrutiny of a return or revised return of income, an assessee can make additional claim for deduction by filing revised computation. In view of the question raised by the revenue, learned counsel for the respondents-assessee submitted that the respondents would be satisfied if they are allowed to file revised return seeking set-off of loss of

3 U.K.Branch with an application for condonation of delay under Section 119 (2) (b) of the Income Tax Act. He further prays for directions to the appropriate authority to consider their application for condonation of delay within the time frame and on condoning the delay, the assessing officer also be directed to consider the revised return within stipulated time.

3.

In view of the submissions advanced by the learned counsel for the parties, we are satisfied that the following order would meet the ends of justice: i) It is open to the respondent-assessee to file revised return of income claiming set-off of loss of U.K.Branch within a period of four weeks from today along with an application for condonation of delay before the appropriate authority. ii) If the assessee files revised return of income and the application for condonation of delay, as aforementioned, the appropriate authority and assessing

4 officer shall consider the application for condonation of delay and the revised return on merits and in accordance with law expeditiously. While considering the application for condonation of delay, the appropriate authority shall take into account the time spent by the assessee in seeking set-off in these proceedings. iii) In view of this order, the orders passed by the first appellate authority and the Tribunal render ineffective.

The appeal is accordingly disposed of.

Sd/-

JUDGE

Sd/- JUDGE

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