TaxTMI 
TaxTMI 
2025 (8) TMI 1273
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....his powers u/s. 263 of the Act in respect of an assessment order passed u/s. 153A r.w.s.143(3) of the Act, dated 19.07.2021. It was the submission that originally the return filed by the assessee for the impugned assessment year came to be processed u/s. 143(3) of the Act on 28.12.2017. Subsequently there was a search and seizure action conducted against the assessee on 17.01.2019 and in consequence of the search the assessment came to be completed u/s. 153A r.w.s. 143(3) of the Act on 19.07.2021. It was the submission that in the assessment u/s. 153A r.w.s.143(3) of the Act dated 19.07.2021, the issue of the carbon credit, as to whether the same is treated as revenue receipt or capital receipt was admittedly not considered by the AO. It was the submission that in the said assessment order, the AO had considered only the money received from certain companies towards share capital to an extent of Rs. 1,85,60,000/- which was treated as the unexplained cash credit as also certain disallowance of deduction u/s. 80IA of the Act and disallowance of trading loss. It was the submission that hard disk bearing id No.SME/HD/1 and SME/HD/2 was considered as incriminating material. It was the s....
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....criminating material found at the time of search. Hence, addition of Rs. 1,85,60,000/- u/s. 68 and the addition of Rs. 11,99,250/- on account of bogus trading loss are deleted. 5. It was the submission that as no incriminating materials have been found, the assessment order passed u/s. 153A r.w.s.143(3) of the Act itself dated 19.07.2021 would not survive. It was further submission that no incriminating material in relation to the said carbon credit which has been claimed as capital receipt by the assessee has also been found in the course of search and consequently the order passed u/s. 263 of the Act is liable to be quashed. 6. In reply, ld.CIT-DR vehemently supported the orders of the ld. Pr.CIT. It was the submission that the carbon credit was generated on account of the revenue operations of the assessee and the income from carbon credits is liable to be assessee only as revenue income and not as a capital receipt. It was the further submission that the provisions of Section 115BBG of the Act has also been introduced w.e.f.. 1st April, 2018. It was the submission that the order of the ld. Pr.CIT is liable to be upheld. 7. We have considered the rival submission. Admit....
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....wer Limited for the assessment years 2017-2018, 2018-2019 & 2019-2020. 10. In these cases, ld. AR submitted that the issues in these appeals in the case of both the assessee's are identical. It was the submission that in the course of assessment u/s. 153A r.w.s.144C(3) of the Act the AO had disallowed the assessee's claim of deduction u/s. 80IA(iv) of the Act. It was the submission that the ld. Pr.CIT had invoked his power u/s. 263 of the Act in respect of computation of the claim of deduction u/s. 80IA of the Act on the ground that there was no allocation of "head-office expenses" while computing the profit. It was the submission that when passing the assessment order u/s. 153A on 31.08.2021 the AO had made certain disallowance of deduction u/s. 80IA of the Act as is mentioned in para 5.02 and 5.03 of the assessment order. It was the submission that this disallowance was the subject matter of an appeal before the ld. CIT(A) and further appeal before the ITAT and the Tribunal has also adjudicated on the quantification of the deduction u/s. 80IA of the Act on the captive power plant in each of the cases as follows :- Statement of present Appeal against 263 order passed by PCIT....
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..../2023 [A] - (27.07.2023) & IT(SS)A No. 129/Kol/2023 [D] - (24.08.2023) 09.02.2024 18.03.2024 12.08.2024 4 2018-19 12.07.2021 31.03.2023 IT(SS)A No. 79/Kol/2023 [A] - (15.05.2023) & IT(SS)A No. 91/Kol/2023 [D] - (02.06.2023) 09.02.2024 18.03.2024 12.08.2024 5 2019-20 12.07.2021 02.06.2023 IT(SS)A No. 109/Kol/2023 [A] - (27.07.2023) & IT(SS)A No. 130/Kol/2023 [D] - (24.08.2023) 09.02.2024 18.03.2024 12.08.2024 SHYAM SEL GROUP SI.No. Name of the Company Asst. Year (Date of 263 Order) Quantum ITAT Appeal No in Order dated 12.08.2024 passed by Hon'ble ITAT, Kolkata, C - Bench (Date of filing of appeal) Eligible Amount Claimed in Return Claimed in 153A Allowed by AO vide order u/s 153A (Date of Order) Allowed by CIT(A) (Date of Order) Hon'ble ITAT Order on 80-IA issue dated 12.08.2024 - 1 Shyam Metalics & Energy Ltd 2017-18 (14.03.2024) IT(SS)A No. 106/Kol/2023 [A] - (28.07.2023) & IT(SS)A No. 127/Kol/2023 [D] - (24.08.2023) 1,30,38,12,667 12,17,57,431 11,77,....
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.... order of the ld. CIT(A). It was the submission that the order of the ld. Pr.CIT(Central)-1, Kolkata in all the appeals are required to be quashed. 12. In reply, ld. CIT-DR vehemently supported the order of the ld. Pr.CIT. It was the submission that the AO had considered the issue of the deduction u/s. 80IA of the Act. When computing the deduction u/s. 80IA of the Act, the AO had not considered the apportionment of the common expenses under the head office expenses or the other expenses, finance cost and the employee benefits. It was the submission that this was not the subject matter of the assessment order nor the appeal before the ld. CIT(A) or the ITAT. 13. We have considered the rival submissions. For better understanding, it would be worthwhile to extract the provisions of sub-clause (c) of Explanation 1 to Section 263 of the Act, which reads as follows :- Revision of orders prejudicial to revenue. 263. (1) Explanation 1. (c) where any order referred to in this sub-section and passed by the Assessing Officer or the Transfer Pricing Officer, as the case may be, had been the subject matter of any appeal filed on or before or after the 1....