1980 (3) TMI 24 - HC - Income Tax

Court emphasizes material on record for deductions, sets aside Commissioner's decision

The court held that even if deductions were not claimed in the return, if necessary particulars were on record, the ITO should consider and allow the ... Exemptions Issues involved: Claim for deductions under s. 80J and s. 80HH of the I.T. Act not entertained by the ITO and Commissioner.Judgment Summary:For the assessment years 1974-75 and 1976-77, the ITO did not deal with or allow deductions under s. 80J and s. 80HH of the I.T. Act as the assessee had not made any claim for these deductions. The Commissioner, in a consolidated order, held that since no relief was claimed under these provisions before the ITO, the belated claim could not be entertained in a revision. The assessee challenged this decision under art. 226 of the Constitution.The court noted that even if a claim was not made in the return of income, if necessary particulars are on record, the ITO should consider and allow the claim. Citing precedents, the court emphasized that the absence of a formal claim in the return should not prevent the ITO or Commissioner from granting a deduction if the relevant material is available. The Supreme Court decision in Addl. CIT v. Gurjargravures P. Ltd. was referenced to highlight the importance of material on record to support a claim.The Commissioner's order was set aside, and the matter was remitted for fresh decision in accordance with law. The court held that the ITO should have considered whether there was material on record to sustain the claim, and the lack of a formal claim in the return should not be a hindrance if the necessary particulars are available.In conclusion, the petition was allowed, and the petitioner was granted costs.