AHMEDNAGAR DISTRICT CENTRAL CO-OP BANK LTD,,AHMEDNAGAR vs. DEPUTY COMMISSIONER OF INCOME-TAX, AHMEDNAGAR CIRCLE ,, AHMEDNAGAR

Ahmednagar Dist. Central Co.op Bank Ltd., Rs.30.91 crore. The assessment was completed at Rs.31.00 crore.

We have heard both the sides and gone through the relevant material on record. It is an undisputed fact that the assessee did not take up a plea of depreciation on Government Securities at Rs.60.00 lakhs before the AO and the same also did not form part of its income-tax return. Simply because a claim which is otherwise valid but not taken up in the return of income, cannot be negatived simply on the score that it was not earlier. Be that as it may, even though the judgment in Goetze (supra) provides that the AO has no power to entertain claim made otherwise than by way of a revised return, it categorically provides: `that the issue in this case is limited to the power of the assessing authority and does not impinge on the power of the Tribunal under s. 254 of the IT Act, 1961’. Thus it is evident, that there is no such constraint on the Ahmednagar Dist. Central Co.op Bank Ltd., power of the Tribunal and it can grant rightful relief on a point for which no claim was made in the return of income. In view of the fact that the claim of the assessee in this regard has not been examined by the authorities below, we consider it fit to set-aside the impugned order and remit the matter to the file of the AO for examining the assessee’s claim on merits as per law. If the claim is found to be sustainable, then the same should be allowed notwithstanding the fact that it was not made in the income-tax return. Needless to say, the assessee will be allowed a reasonable opportunity of hearing.