TaxTMI 
TaxTMI 
2008 (6) TMI 50
X X X X Extracts X X X X
X X X X Extracts X X X X
....following deduction claimed in the return were disallowed and thus the total loss of the assessee was reduced to Rs. 1,36,42,304 : "Travelling expenses 60 Provision for gratuity 9,61,482 Provision for bonus 4,62,000 Previous year expenses 6,053 Entertainment under section 37(2A) 30,748 14,60,343" 2. The deductions were disallowed for non-compliance with the statutory conditions stipulated under section 43B of "the Act". 3. On April 4, 1991, the assessee filed an application under section 154 of "the Act" seeking rectification, which was disallowed by the Assistant Commissioner of Income-tax in terms of its order dated September 6, 1991. The application was rejected with the following observations: "3 I have considered ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pellant is liable for deduction under section 80P(2)(a)(1). The has held as under in the said circular- 'For the purpose of the Income-tax Act, 1961, or any other enactment for the time being in force relating to only tax on income, profits or gains, a regional rural bank, shall be deemed to be a co-operative society. Therefore, the provisions of section 80P of the Income-tax Act, 1961, will also be applicable in respect of regional rural banks.' In view of the said circular the appellant is liable for deduction under section 80P. Therefore, the Assessing Officer is directed to allow such deduct to the appellant as per law. The appellant will get relief accordingly. In the result, the appeal is allowed." (emphasis supplied) 5. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onal tax on the amount of adjustment made under section 143(1) (a) by disallowing the certain expenses both statutory and not statutory in view of the Circular No. 669, dated October 25, 1993 [1993] 204 ITR (St.) 105, and the judgment of the hon'ble Supreme Court in the case of Allied Motors P: Ltd. V. CIT [1997] 224 ITR 677 as the assessee/appellant moved an application under section 154 claiming the payment of expenses within stipulated time and also that the expenses disallowed were non-statutory expenses ? 2. In view of Circular No. 319, dated January 11, 1982 [1982] 134 ITR (St.) 165, wherein the entire income of the assessee is exempt from the payment of tax, whether the charging of additional tax charged under section 143(1A) is jus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction 80P of the Act was raised for the first time in an appeal before the Commissioner of Income-tax (Appeals). 11. It is not in dispute that the assessee would be entitled to the statutory benefits under section 80P, subject, however, to the fulfilment of conditions stipulated therein. Whether the assessee has fulfilled the conditions stipulated thereunder or not, has not been considered either by the Commissioner of Income-tax (Appeals) or by the Income-tax Appellate Tribunal in their orders dated February 24, 1992, and September 22, 1999. None of the authorities below have gone into this aspect of the matter. The Income-tax Appellate Tribunal non-suited the assessee solely on the ground that the Commissioner of Income-tax (Appeals) had....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessee in seeking modification of the order of the assessment pas by the Income-tax Officer if the ground so raised could not have been raised at that particular stage when the return was filed or when the assessment order was made, or that the ground became available on account of change of circumstances or law." (emphasis supplied) 13. The apex court has reiterated the aforesaid view in National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383; [1997] 7 SCC 489 and CIT v. Nirbheram Daluram [1997] 224 ITR 610 (SC) ; [1997]10 SCC 373. 14. Mr. Kuthiala has submitted that the order passed by the Assistant Commissioner of Income-tax dated September 6, 1991, was not in original assessment proceedings but on an application filled under sec....