TaxTMI 
TaxTMI 
2024 (9) TMI 1195
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.... 2. In the facts and circumstances of the case, having regard to the issues involved and with consent and request of learned advocates for the parties, both these Special Civil Applications were taken up for final consideration today, by treating Special Civil Application No.14025 of 2020 as lead matter. 3. Rule returnable in both the Special Civil Applications forthwith. Learned advocate Ms. Maithili Mehta waives service of notice of Rule on behalf of the Revenue. 4. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the order dated 4.3.2020 passed by the Principal Commissioner of Income-Tax, Ahmedabad under Section 260 of the Income-Tax Act, 1961 (for short 'the Act'), by which the app....
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....fficer itself computed the claim of depreciation considering AY 2007-08 as the first year although the petitioner had not claimed any depreciation in AY 2007-08 to AY 2009-10. The ITAT vide order dated 17th October, 2018 (for AY 2009-10) finally concluded this controversy and the petitioner - company's claim was accepted by the ITAT for even AY 2009-10. In this regards, comparative working of depreciation on goodwill, as computed by respondent and Assessing Officer is provided as under: Assessment Year Depreciation claimed by petitioner Depreciation computed by AO 2007-08 - 4,24,86,335/ (Being 12.5% of value of goodwill on demerger i.e. Rs. 33,98,90,680/-) (Notional computation, actual depreciation is not granted) 2008-09 - 7,4....
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....the power to correct errors committed by the subordinate authorities but could even be exercised where errors are committed by assessee. It would even cover situations where the assessee because of an error has not put forth a legitimate claim at the time of filing the return and the error is subsequently discovered and is raised for the first time in an application under section 264 of the Act. For the sake of brevity, the relevant observations of the decision of this Court rendered in Special Civil Application 14230 of 2020 are quoted, thus; "8. It will be also useful to reproduce paragraphs 11 and 12 of EBR Enterprises v. Union of India [2018] 89 taxmann.com 194/2017(12) TMI 425, which read as under: "11. Coming back to the impugned ....
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....t stand to benefit by resorting to delay. In fact, he runs a serious risk." 12. In view of the law laid down by the Apex Court, it was not necessary for the petitioner to have explained each and every day's delay. On the contrary, the Apex Court held that when substantial justice and technical considerations are pitted against each other, the cause of substantial justice is to be preferred. The Apex Court also held there is no presumption that delay is intentional and deliberate, as normally a litigant does not stand to benefit by resorting to delay. As stated earlier, in the application dated 20th March, 2014 seeking invocation of the power under section 264, the delay has been adequately explained." 9. Therefore, the commissioner h....
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....exercise under section 264 of the Act came up for consideration before the Division Bench of this Court in Hindustan Diamond Company Pvt. Ltd. v. CIT [(2003) 175 Taxation 91 (Bom)]. The Division Bench was pleased to observe that exercise of power under section 264 was not subject to the power of the Assessing Officer to make adjustment under section 143 (1) of the Act. The Court held that power of the Commissioner under section 264 is rather wide and even the errors committed could be rectified. Paragraph 6 of the Hindustan Diamond Company Pvt. Ltd. (supra) reads as under: "6. Having heard the Counsel on both sides, we are of the opinion that the Commissioner was not justified in rejecting the revision application of the assessee. As righ....
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....g Officer to make adjustments under section 143 (1) of the Income-tax Act. Therefore, relief can be granted to the assessee under section 264 even if the power of adjustment under section 143 (1) is taken away from the Assessing Officer." (emphasis supplied) 9. Section 264 of the Act also came up for consideration before the Hon'ble Delhi High Court in Vijay Gupta v CIT Delhi-III [2016] 68 taxmann.com 131 (Delhi) where paragraph 35 reads as under: "35. From the various judicial pronouncements, it is settled that the powers conferred under section 264 of the Act are very wide. The Commissioner is bound to apply his mind to the question whether the petitioner was taxable on that income. Since section 264 uses the expression "any ord....