MAITHAN ALLOYS LIMITED,KOLKATA vs. DCIT,CIR-1(1), KOLKATA. , KOLKATA

The present appeal is directed at the instance of the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter the “ld. CIT(A)”) dt. 29/11/2023, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2021-22.

The sole grievance of the assessee is that the lower authorities erred in denying the claim of deduction u/s 80M of the Act towards inter-corporate dividends at Rs.19,48,050/-.

At the outset, the ld. Counsel for the assessee submitted that in the Income Tax Return (ITR) originally filed as well as subsequently revised, the assessee did not make the claim of deduction u/s 80M of the Act for inter-corporate dividend. However, during the course of assessment proceedings, this claim was raised and on the strength of the judgement of the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. v. Commissioner of Income-tax reported in [1998] Assessment Year: 2021-22 Maithan Alloys Limited 229 ITR 383 (SC) ld. Assessing Officer accepted the application entertaining the claim but on merits denied the claim on the ground that the assessee did not raise the claim in its return of income. Subsequently, the assessee did not get any favour from the ld. CIT(A).

Before us, the ld. Counsel for the assessee placing reliance on the judgment of the Hon’ble Delhi High Court in the case of International Tractors Ltd. [2021] 435 ITR 85 (Delhi) as well as Article 265 of the Constitution of India and also referring to other decisions stated that only legitimate tax can be recovered and even a concession by a tax- payer does not give authority to the tax collector to recover more than what is due from him under the law. He also submitted that the deduction u/s 80M of the Act was newly introduced in the Finance Act, 2020 applicable from Assessment Year 2021-22 and the assessee inadvertently missed the claim of deduction. On the other hand, the ld. D/R vehemently argued supporting the orders of both the lower authorities and again asserted the fact that in view of the judgment of the Hon’ble Supreme Court in the case of Goetze (India) Ltd. vs. CIT (2006) 284 ITR 323 (SC), the Assessing Officer does not have the power to entertain the claim made otherwise than through original/revised return.

We have heard rival contentions and perused the material placed before us.

The assessee is aggrieved with the order of the lower authorities for not allowing the deduction u/s 80M of the Act at Rs.19,48,050/- claimed on account of inter-corporate dividend. Admittedly, Section 80M of the Act has been introduced by Finance Act, 2020, applicable