2023 (7) TMI 1268 - AT - Income Tax

Tribunal overturns assessment orders & remands for fresh consideration

The Tribunal allowed the appellant's challenge on the assessment order under section 155A read with Section 143(3) of the IT Act, setting aside the orders ... Deduction u/s 80IB - not considering the miscellaneous income while calculating the eligible income for deduction - Additional evidences as submitted like copies of certain ledger accounts like slaughtering charges, account of gain of loss from forward contract, account of commission receipt, freight charges paid, account of JSB cargo and account of Refund from UP Sales Tax etc.not been admitted by the Ld. CIT(A) on the ground that the same is outside the purview of conditions stipulated u/s 46A of the Act HELD THAT:- Considering all we are of the considered opinion that, the Ld. CIT(A) should have accepted the additional evidence and after verifying the documents produced by the assessee should have decided regarding eligibility or otherwise of the assessee regarding claim u/s 80IB therefore, we deem it fit to remand the matter to the file of the Ld. CIT(A) with direction to admit the additional documents produced by the assessee and decide the matter afresh. Issues involved:The judgment involves issues related to assessment under section 155A read with Section 143(3) of the Income Tax Act, 1961, addition of excess deduction claimed under section 80IB of the Act, confirmation of various additions by the Commissioner of Income Tax (Appeals), and levying of interest under sections 234B and 234C of the Act.Issue 1: Assessment under Section 155A read with Section 143(3) of the IT Act:The appellant challenged the assessment order under section 155A read with Section 143(3) of the IT Act, arguing that the Assessing Officer exceeded the scope by making additions not based on incriminating material found during the search operation. The Tribunal allowed the ground of the appellant, setting aside the orders of the Assessing Officer and the Commissioner of Income Tax (Appeals).Issue 2: Addition of excess deduction claimed under Section 80IB of the Act:In the case of the appellant for assessment year 2013-14, an addition of Rs. 92,94,914 was made by the Assessing Officer for claimed excess deduction under section 80IB of the Act. The Tribunal found that no incriminating material was found during the search, leading to the quashing of the assessment order and the decision of the Commissioner of Income Tax (Appeals).Issue 3: Confirmation of additions by CIT(A) and additional evidence:For assessment years 2014-15 to 2016-17, the appellant challenged the additions made under section 80IB of the Act. The Commissioner of Income Tax (Appeals) confirmed the additions and rejected additional evidence submitted by the appellant. The Tribunal remanded the matter back to the Commissioner for fresh consideration after admitting the additional evidence, allowing the appeals for statistical purposes.Issue 4: Levying of interest under Sections 234B and 234C of the Act:The appellant contested the levying of interest under sections 234B and 234C of the Act. The Tribunal did not provide specific details on the resolution of this issue in the summarized judgment.In conclusion, the judgment addressed various issues related to assessment, deduction claims under section 80IB, and the consideration of additional evidence by the Commissioner of Income Tax (Appeals). The Tribunal set aside certain orders, remanded matters for fresh consideration, and allowed appeals for statistical purposes.