TaxTMI 
TaxTMI 
2018 (11) TMI 871
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....itiated and completed the proceedings under section 154 of the Income Tax Act, 1961 (hereinafter the Act) had no jurisdiction over the case of the Assessee inter alia because: a) The Id. ACIT had no territorial jurisdiction, b) On 21-08-2013, the date of issuing the notice as well as on 29-11-2013, the date of order under section 154 of the Act, the jurisdiction over the case of the Assessee was with the Id. Joint Commissioner of Income Tax, Range -39, New Delhi vide order dated 14-08-2013 of the Id. Commissioner of Income Tax, c) The assessment order being rectified by the Id. AC ITis null and void ab-initio because the same is in pursuance of the notice u/s 143(2) of the Act issued by the Id. Income Tax Officer,....
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....rs and debtors and fixed deposits with Bank. 3. The Ld. ACIT as well as the Ld. CIT(A) erred in disallowing deduction u/s. 80IB of the Act in respect of interest from debtors and interest on FDR. 4. The Ld. ACIT erred in charging interest u/s 234D of the Act and in withdrawing interest u/s. 244A of the Act; and without prejudice the same are excessive. 5. The order passed by the Ld. ACIT as well as Ld. CIT(A) is against the facts of the case as well as law. 3. The brief facts of the case are that the assessment in this case was completed u/s. 143(3) of the Income Tax Act, 1961 (in short "Act") at an income of Rs. 2,27,25,710/- on 29.3.2013. Subsequently, it revealed by the AO that the assessee claimed excess de....
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....the assessment order after considering (vide para 10), the detailed submissions made by the Assessee vide letter dated 18-3.2013, in response to the query by the AO and the deduction u/s. 80IB of the Act in respect of income from interest received from debtors and on fixed deposits with banks was allowed in preceding years i.e. AY 2005- 06 to 2008-09. It was further submitted that provisions of section 154 of the Act are applicable to the mistake, which is apparent, glaring, obvious, self evident or ex facie that it is un-capable of argument or proof; and are not applicable to debatable issues or when two view are possible. It was further submitted that the proceedings under the provisions of section 154 of the Act cannot be initiated on th....
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....posits with banks as income from business; and allowed the deduction u/s. 80-IB of the Act by observing as under:- "10. The claim for deduction u/s. 80IB of the Act has been examined in light of the submissions made and details/documents filed. The assessee firm is engaged in manufacturing activities and fulfils all the conditions prescribed by section 80IB of the Income Tax Act, 1961 for the deduction. The submission of the Assessee firm regarding allowability of deduction u/s. 80IB of the Act in respect of interest from debtors and fixed deposit with bank has been considered and examined vis-vis books of accounts. In view of the above detailed discussion, it is established that the industrial undertaking of the firm fulfils all t....
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....is clear case of change of opinion; the order does not even mention the nature of amount disallowed; the order does not show any basis, reason or logic to arrive at a conclusion that deduction allowed u/s. 80IB of the Act is mistake apparent from record much less patent and glaring; the assessment order does not point any mistake of fact or application of any law. Hence, in our view there is no mistake apparent on record rectifiable u/s. 154 of the Act, therefore, we quash the orders of the authorities below and allow the deduction in dispute u/s. 80IB of the Act in respect of the interest received from debtors and on fixed deposit with banks. Accordingly, the grounds no. 2 & 3 raised by the assessee are allowed. Our aforesaid view is forti....