TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 569
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....le in as much as she was not justified to uphold a sum of Rs. 20,000/- out of expenses on ground that certain expenses were un-vouched without pin pointing any specific item of disallowance. 2. That the Ld. Commissioner of Income Tax (Appeals)II, gravely erred in not entertaining the claim made by the appellant by filing a letter before the Ld Assessing Officer in respect of claim of Rs. 2,57,643/- paid to PSEB as peak load violation charges and a sum of Rs. 4,75,06,021/- claimed as excess depreciation in previous year which is not income of the appellant as it was merely a transfer entry." 3. Ground No.1 raised by the assessee was not pressed before us. The same is, therefore, treated as dismissed. 4. In ground No.2, the assessee is ....
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.... issue of peak load charges, it was pointed out by the Bench to the learned counsel for the assessee that the claim of the assessee had been entertained by the learned CIT (Appeals) and thereafter disallowed. Therefore, there could be no grievance of the assessee vis-à-vis non-entertainment of claim by the lower authorities. As regards disallowance of the same, we find that the CIT (Appeals) had held the same to be penal in nature. On being confronted by the Bench to adduce evidence to prove that the claim was not penal in nature, the learned counsel for the assessee expressed his inability to do so. In view of the same, we hold that there is no infirmity in the order of the learned CIT (Appeals) in disallowing the claim of peak load....
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....e have heard the contention of both the parties and perused the orders of the authorities below as also the documents referred before us. We find merit in this contention of the assessee that claim not made in the return of income can be made during assessment proceedings. The reliance placed by the Ld .Counsel for the assessee in this regard on the decision of the ITAT Pune Bench in the case of DCIT vs. Lab India Instruments Pvt. Ltd. (2005) 93 ITD 120 is apt wherein the Tribunal held that an income not taxable cannot be taxed merely because the assessee forgot to claim the exemption of deduction under some belief. The Tribunal held that under section 4 of the Income Tax Act only true and correct total income is to be assessed and it is th....
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....tion in the return filed by him. Such inadvertent mistake cannot be exploited by tax authorities for rejecting the claim of assessee for exemption/deduction even though such claim has been made by assessee in the course of assessment proceedings. Rather, it is the duty of the AO to allow such deduction or exemption to which assessee is entitled to on the basis of material placed on record. No doubt, the claim of exemption/deduction cannot be thus; upon the assessee but, at least, it is the duty of AO to apprise of the relevant provisions under which assessee is entitled to exemption/deductions. Therefore, in our opinion, assessee is entitled to claim deduction if such claim is made by assessee before the completion of assessment proceedings....
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....ional Thermal Power Corporation, 229 ITR 383 wherein it has been held that entire assessment proceedings are open before the Tribunal, and therefore, assessee is entitled to raise additional ground of appeal to claim any deduction/exemption provided no investigation into facts is required at appellate stage. It was further held that claim of assessee cannot be rejected merely on the ground that assessee himself had offered the receipts to tax in the return filed by him. If any income is not taxable under the Act, the assessee is entitled to claim the same by raising the additional ground of appeal before the appellate authorities. If the claim can be raised before the appellate authorities for the first time then, in our opinion, there is n....