2016 (7) TMI 702

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....dgement generated, on return electronically transmitted, the income was same. Central Processing Center (CPC)vide its intimation issue u/s. 143(1)of the Act, determined the income of the assessee at Rs. 27. 12 Crores. Thus, there was difference of Rs. 2. 20 Crores between the income returned by the assessee and the intimation issued by the CPC. It applied for rectification, vide its letter dated 08. 02. 2013. CPC vide letter dated 22. 03. 2013, intimated the assessee as under: "Subsequent assessment/proceedings have been initiated by your Assessing Officer and hence your application for rectification cannot be taken up at CPC. " During the scrutiny assessment proceedings, before the AO, the assessee explained that the difference of Rs. ....

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..... 1. 42 crores to match the claim of deduction u/s. 36(1), that the assessee had not made the claim for deduction while filing the original return, that the only option available to it was to file a revised return of income, that the assessee had failed to furnish a revised return within the due date, that in absence of a revised return, claim made by the assessee could not be entertained. With regard to the double disallowance of Rs. 78. 93 lakhs, the FAA allowed the relief to the assessee. 4. During the course of hearing before us, the Authorised Representative (AR) contended that deduction u/s. 361)(viii) was allowable to a co-operative bank to the extent of 25% of the income assessed under the head business or profession if it was carr....

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....he AO and the FAA rejected the claim made by the assessee, that in the AY 2012-13, in similar circumstances the CPC had accepted the claim made by the assessee. Here, we would like to mention that the purpose behind enacting the Act is to tax the income and collect due taxes for State Exchequer. For collecting the taxes and assessing the income, procedure has been laid down. It is true that without following a certain procedure, no system can work. But, the procedure cannot take place of substance. The Act contain provisions that deal with assessment, re-assessment and rectification of mistakes/revision of orders etc. The basic purpose of all these exercises is that Sovereign is not deprived of its share of taxes and the taxpayers are not ....