2022 (12) TMI 504

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....eal: "The appellant objects to the Commissioner of Income tax (Appeals) [CIT(A)]'s order upholding CPC's: i) adjustments' u/s 143(1)(a)(ii) by way of: a. denial of deduction u/s 80JJAA, Rs.176543, ii) Consequent levy of tax & cess; iii) Levy of interest u/s 234B and iv) Computation of interest u/s 234C for 2018-19 a/y on the following grounds: 1. The CIT(A) erred in not deciding the illegality of the 'adjustment' (denial of deduction u/s 80JJAA of Rs.176543) made to the Total income, in CPC's impugned intimation u/s 143(1 ). 2.1 The CIT(A) failed to appreciate that the 'adjustment' (denial of deduction u/s 80JJAA of Rs.176543) could not h....

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....5 (Delhi) DCIT vs Page industries Ltd. ITA No.1209/Bang/2018 dt.14.6.2019 (Bangalore) 3.3 The CIT(A) misdirected himself in denying the deduction without appreciating that if exemption for a specified number of years is granted on satisfaction of conditions in the 1st year - then exemption CANNOT be denied for subsequent years without withdrawing the exemption for 1st year, as held in: CIT vs Western outdoor interactive pvt ltd - 349 ITR 309 BOM CIT vs Arts & crafts exports 246 ctr 463 (Born) CIT vs Macbrout engineering pvt ltd 232 Taxman 406(Bom) CIT vs Tata communications internet services ltd 204 Taxman 606 (Del) - SLP dismissed 282 Taxman 462 (SC) CIT vs Paul bros 216 ITR 54....

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....e deleted; iii) Interest levied u/s 234B be deleted & iv) correct interest u/s 234C, as in the return, be computed and justice rendered." 3. The brief facts of the case are that the assessee has filed return of income for the assessment year 2018-19 on 30.09.2018 declaring total income of Rs. 7,08,50,544/-. The assessee has claimed deduction u/s.80JJAA of the Income Tax Act, 1961 (hereafter referred to as "the Act"), for Rs.1,76,543/- for employing new employees and such deduction has been claimed for the first time for the assessment year 2017-18. The ADIT, CPC, has completed assessment u/s.143(1) of the Act and determined total income of Rs. 7,65,56514/- and rejected deduction claimed u/s.80JJAA of the Act, on the gro....

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.... the Act, in the intimation issued u/s. 143(1)(a) of the Act, because such issue is highly debatable which can be resolved by deliberation, including verification of necessary documents. The relevant findings of the Tribunal are as under: "5. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The Assessing Officer has made adjustment of total income computed in the intimation received u/s.143(1) of the Act, towards deduction claimed u/s.80JJAA of the Act, in respect of employment of new employees on the ground that the assessee has not satisfied conditions prescribed therein, including filing of audit report in Form 10DA. It was explanation of the assessee before t....