TaxTMI 
TaxTMI 
2021 (10) TMI 69
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....rom tenants who were engaged in the sale of embroidery machines. Assessee electronically filed its return of income for A.Y. 2012-13 on 30.09.2010 declaring loss of Rs. 1,78,73,589/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 27.03.2015 and the total loss was determined at Rs. 1,01,60,116/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before us and has raised the following grounds: "1. That on the facts and circumstances of the case and under the provision of law the ld Commissioner of Income Tax (Appeals) has erred in upholding part dis....
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.... moto disallowance of Rs. 13,33,732/- made by the assessee, made a net disallowance of Rs. 14,03,036/-. 5. Aggrieved by the order of AO, assessee carried the matter before the CIT(A). Before CIT(A) assessee inter alia reiterated the submissions made before the AO and submitted that since it had not earned any exempt dividend income, therefore as per the decision of Jurisdictional High Court, no disallowance u/s 14A of the Act is called for and further the suo moto disallowance made by the assessee be considered to be withdrawn. The submissions of the assessee was not found acceptable to CIT(A). CIT(A) did not find any fault with invoking the provision of Section 14A r.w.r 8D of the Act. He however agreed with the contention of the assessee....
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.... of income expired on 31.03.2014 and therefore it could not file revised return of income before the AO. Before us, Learned AR also submitted that it is a settled law that the CIT(A) as well as Tribunal have the jurisdiction to consider the additional claim. He therefore submitted that considering the binding precedent rendered by the Hon'ble Delhi High Court in the case of Holcim India Pvt. Ltd. (supra), no disallowance u/s 14A of the Act is called for and therefore the suo moto disallowance made by assessee be allowed to be withdrawn. 7. Learned DR on the other hand supported the order of lower authorities and further submitted that once the assessee has suo moto disallowed the expenses u/s 14A of the Act then without filing revised retu....
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....d force in the argument of the Learned AR that assessee could not file the revised return income before the AO. Further, it is a settled law that the purpose of assessment proceedings is to assess the tax liability of an assessee correctly in accordance with law. We find that Hon'ble Gujarat High Court in the case of CIT vs. Mitesh Impex reported in [2014] 46 taxmann.com 30 after considering the decision of Hon'ble Apex Court in the case of Goetze (India) Ltd. vs. CIT and various other decisions cited therein has held that if a claim though available in law is not made either inadvertently or on account of erroneous belief of complex legal position, such claim cannot be shut out for all times to come, merely because it is raised for the fir....