TaxTMI 
TaxTMI 
TaxTMI 
2013 (11) TMI 1250
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....Section 147 of the Income Tax Act, 1961 and the assessee was allowed number of opportunities to furnish his detailed explanation. Since no reply was submitted by the assessee, the case was reopened and the notice under Section 148 was issued. The assessee in its reply dated 8.2.1986, submitted that deduction allowable under Section 80-J has been wrongly allowed under Section 80-I to him. The assessee further submitted that his claim under Section 80J has been mistaken by the Assessing Authority for claim under Section 80-I and claimed that proceedings under Section 148 may be dropped and the mistake be rectified under Section 154. The A.O. held as under:- "The above claim of the assessee appears to be factually incorrect. In the original return the assessee had claimed deduction u/s 80I with a detailed working at Rs.3,29,201. The assessee has furnished the detailed working not only in the return but also in the Annexure enclosed alongwith the return. In the revised return also the assessee has claimed deduction u/s 80I in the return as well as in the Annexure but on a different figure. Here the assessee, again has given a detailed working and has claimed deduction u/s 80I at Rs.4,....
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....CIT Vs. GURJARGRAVURES P. Ltd. 111 ITR 1." 4. The Income Tax Appellate Tribunal held that the claim of the assessee under Section 80-J has no legs to stand as the claim under Section 80-J becomes fresh claim. The proceedings initiated under Section 148 are for the interest of the revenue and not for the interest of the assessee. The order of CIT Appeals was confirmed. 5. We have heard Sri Shambhu Chopra appearing for the revenue and Sri S.K. Garg for the assessee. 6. Learned counsel for the assessee has submitted that when any assessment is reopened under Section 148 of the Income Tax Act, 1961, the A.O. can redetermine the income of the assessee and the assessee can claim such deductions which were not previously claimed. On the other hand, learned counsel for the revenue has argued that in view of the decision of Hon'ble the Supreme Court, the proceedings under Section 148 cannot be used to grant any benefit to the assessee. 7. Section 80-I provides for deduction in respect of profits and gains from industrial undertakings after certain date. This provision was inserted by the Finance Act, 1980 w.e.f. 1.4.1981. Originally, provision relating to priority industries was dealt w....
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....and sons Vs. Commissioner of Income Tax (1973) 92 ITR 453, Additional Commissioner of Income Tax Vs. Gurjargravures P. Ltd. (1978) 111 ITR 1 (SC), V. Jaganmohan Rao and others Vs. Commissioner of Income Tax and others (1970) 75 ITR 373, Commissioner of Income Tax Vs. Sun Engineering Works P. Ltd. (1992) 198 ITR 297, Income Tax Officer and another Vs. K.L. Srihari (1992) 197 ITR 694, Smt. Raj Rani Gulati Vs. Commissioner of Income Tax (Income Tax Appeal No.54 of 2007 decided by Lucknow Bench on 19.10.2011 and Commissioner of Income Tax Vs. J.H. Gotla (1985) 156 ITR 323 (SC). 11. Sri Shambhu Chopra appearing for revenue has relied upon CIT Vs. Sun Engineering Works P. Ltd. (1992) 198 ITR 297 and Chettinad Corporation P. Ltd. Vs. Commissioner of Income Tax (1993) 200 ITR 320. 12. We have considered the rival submissions made at the bar. At the outset, we would like to observe that the nature, quantum, procedure and the eligibility criteria to claim deductions under Section 80-I and 80-J, are totally different. It appears that the assessee had made an unsuccessful attempt to claim deductions under Section 80-I instead of deductions under Section 80-J. 13. In Income Tax Officer and a....
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....unal directed the I.T.O. to allow deductions under Sections 80-I and 80-J of the Income Tax Act on the basis of the assessee's claim for such deductions in the course of reassessment proceedings. The Calcutta High Court held that in the course of reassessment made pursuant to the direction of the Tribunal, the assessee is entitled to claim all the benefits that are available to it, even if the assessee did not claim such benefit at the time of original assessment. 18. The law laid down in State Bank of Hyderabad Vs. Commissioner of Income Tax (supra) (Andhra Pradesh High Court) has been specifically disapproved by Hon'ble the Apex Court in Commissioner of Income Tax Vs. Sun Engineering Works P. Ltd. (supra). 19. The decision of this Court in Sir Shadi Lal and sons Vs. Commissioner of Income Tax (supra) has been impliedly approved by Hon'ble the Supreme Court in Commissioner of Income Tax Vs. Sun Engineering Works P. Ltd. The Chettinad Corporation P. Ltd. Vs. Commissioner of Income Tax (supra) has also been impliedly approved by Hon'ble the Supreme Court in Sun Engineering case. 20. The legal position regarding the present issue has been set at rest by Hon'ble the Supreme Court i....
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....o an assessee to put forward claims for deduction of any expenditure in respect of that income or the non-taxability of the items at all. Keeping in view the object and purpose of the proceedings under section 147 of the Act which are for the benefit of the Revenue and not an assessee, an assessee cannot be permitted to convert the reassessment proceedings as his appeal or revision, in disguise, and seek relief in respect of items earlier rejected or claim relief in respect of items not claimed in the original assessment proceedings, unless relatable to escaped income ", and reagitate the concluded matters. Even in cases where the claims of the assessee during the course of reassessment proceedings relating to the escaped assessment are accepted, still the allowance of such claims has to be limited to the extent to which they reduce the income to that originally assessed. The income for purposes of " reassessment " cannot be reduced beyond the income originally assessed." 21. In view of the above, there remains no doubt regarding the legal position that where reassessment is made under Section 147 and issuance of notice under Section 148, the Income Tax Officer's jurisdiction is c....