2022 (7) TMI 1257

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....s and in the circumstances of the case of the appellant, the Ld. CIT(A) has erred in not allowing relief of disallowance for Rs.68,06,152/- made u/s 14A of the Act by the appellant into its return of income while doing so he has erred in not following the ratio of decision of Hon'ble Gujarat High Court in case of CIT vs. Corrtech Energy Pvt. Ltd. [45 taxmann.com 116]" 2. The assessee, in the present case, is a company which filed its return of income for the year under consideration on 31.10.2017 declaring a loss of Rs.(-)1,29,46,740/-. The said return was selected for scrutiny under CASS and a notice under Section 143(2) of the Income-tax Act, 1961 ["the Act" in short] was issued by the Assessing Officer to the assessee on 27.08.2018. D....

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....ision of Hon'ble Gujarat High Court in the case of CIT Vs. Corrtech Energy Pvt. Ltd. [(2014) 45 taxmann.com 116 (Guj.)]. The learned CIT(A) agreed with the contention of the assessee that the issue was squarely covered in favour of the assessee by various judicial pronouncements including the decision of Hon'ble jurisdictional High Court in the case of Corrtech Energy Pvt. Ltd. (supra), wherein the similar issue was decided in favour of the assessee after considering the CBDT Circular relied upon by the Assessing Officer. He, however, still sustained the disallowance of Rs.73,06,483/- made by the Assessing Officer under Section 14A r.w. Rule 8D to the extent of Rs. 68,06,152/- being the disallowance offered by the assessee suo moto observin....

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.... regardless of whether the revised return was filed or not. Once the assessee is in a position to show that it has been over assessed under the provisions of the Act even on account of assessee's own mistake or otherwise, the Revenue is under duty to assess correct income. 9. It is trite that the authorities under the Act are under sacrosanct obligation to act in accordance with law. Tax can be collected only as provided under the Act. If an assessee, under a mistake, mis-conception or not being properly instructed, is over assessed, the authorities under the Act are required to ensure that only legitimate tax dues are collected. This is the view which flows from innumerable judgments including CIT vs. Shelly Products (2003) 26....