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Income Tax Appellate Tribunal, DELHI BENCH: ‘C’ NEW DELHI
Before: SHRI S.K. YADAV & SHRI PRASHANT MAHARISHI
ORDER PER SHRI S.K. YADAV, J.M. This appeal is preferred by the assessee against the order of the Commissioner of Income Tax (Appeals) (for short called as the ‘CIT (A)’), inter alia, on the following grounds of appeal:
1. “That having regard to the facts and circumstances of the case, Ld. CIT (A) has erred in law and on facts in upholding the action of the Ld. AO in allowing deduction u/s 80IC of the Income Tax Act, 1961 of Rs. 15,22,21,116/- instead of Rs. 15,47,31,853/- as claimed by the assessee during assessment proceedings. Thus, deduction u/s 80IC has been short allowed by an amount of Rs. 25,10,737/-.
2. That in any case and in any view of the matter, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in rejecting application u/s 154 is bad in law and against the facts and circumstances of the case.
3. That having regard to the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in confirming the action of the Ld. AO in passing the impugned order u/s 154 is bad in law and against the facts and circumstances of the case.
4. That the assessee craves the leave to add, alter or amend the grounds of appeal
at any stage and all the grounds are without prejudice to each other.”
2. During the course of hearing, Ld. Counsel for the assesse has invited our attention to the fact that it claimed deductions u/s 80IC of the Income Tax Act, 1961 (hereinafter called as the ‘Act’) at Rs. 15,22,21,116/- in its revised return filed by the assessee company on 18.12.2013. During the course of assessment proceedings, the assessee has also filed a letter claiming deduction u/s 80IC of the Act amounting to Rs. 15,47,31,853/- in place of earlier claim of Rs. 15,22,21,116/-, pointing out certain calculation mistakes. This letter was not entertained by the Assessing Officer on the ground that it was not filed during the prescribed period and he allowed the claim u/s 80IC of the Act for Rs. 15,22,21,116/- only. Thereafter, assessee filed the rectification application u/s 154 of the Act detailing the calculation mistakes but it was not accepted by the AO.
3. Assessee preferred an appeal before the Ld. CIT(A) but did not find favour with him.
Now the assessee is before us with the submission that he has filed a letter claiming the correct entitlement of deduction u/s 80IC of the Act but it was rejected by the AO taking a shelter of provisions of Section 80A(5) of the Act, whereas, 80A(5) of the Act talks about the original claim raised by the assesses. If assessee did not raise any claim in his return of income u/s 80IC of the Act he may be debarred from raising a claim thereafter. But in the instant case assessee has already raised a claim in its return of income and only calculation mistake was pointed out to the AO. Therefore, the provisions of Section 80A(5) of the Act cannot be invoked to the present facts and circumstances of the case. The Ld. Counsel for the assessee further contended that even otherwise the AO required to assess the income correctly in accordance with law and allow the deductions as per the entitlement of the assessee. Therefore, assessee may be allowed the deduction of its correct entitlement.
The ld. DR placed a reliance on the order of the CIT(A).
Having carefully examined the order of the lower authorities in the light of the rival submissions, we find that undisputedly the original claim was raised in the return of income and during the course of assessment proceedings assessee has made the correction in the claim raised u/s 80IC of the Act. Therefore, AO cannot take the shelter provisions of Section 80A(5) of the Act. Wherever any calculation mistakes are pointed out to the AO the corrections should have been made in the calculations in accordance with law. But the AO did not do the same and rejected the request of the assessee for correction in the deduction claimed u/s 80IC of the Act. The assessee has also filed the calculations of deduction of Section 80IC of the Act but without making a proper verification of the same, the claim of the assessee cannot be allowed. Therefore, we set aside the order of the CIT(A) and restore the matter to the AO for making necessary verification to the calculations made by the assesses and if he satisfied with the calculations necessary correction be made in the claim of deduction raised u/s 80IC of the Act. Accordingly, the mater is restored back to the AO after setting aside the order of the CIT(A). Needless to mention here that a proper opportunity of being heard, be allowed to the assessee while making necessary verification in the claim of deductions raised by the assessee.
In the result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 24.05.2018