TaxTMI 
TaxTMI 
2024 (4) TMI 1338
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....) has erred in law and on facts in confirming the validity of the reassessment proceedings u/s. 148 of the Act which was initiated based on no new set of facts and was merely in form of review of Assessment Order earlier passed u/s. 143(3) of the Act in respect of the year under consideration. 2.1 All relevant details pertaining to the claim of deduction 80IA of the Act had duly been brought on record by appellant during the original assessment proceeding. 3. Ld. CIT(A), has erred in law and on facts in not appreciating the fact that the appellant, in the return of income filed for the year under consideration, had duly given effect to the adjustment required for the depreciation of Rs. 79,24,946/- and therefore, no further adjustment was required. 4. The appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal on before of the final hearing of appeal. 2.1 The assessee has also raised the additional grounds of appeal which are reproduced as under: 1. In law and in the facts of the appellant's case, Ld. Assessing Officer may be directed to reduce the total income of the assessee by Rs. 3,96,42,334/- rec....
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....er Income Tax Act 386800/- Deduction allowable as per Section 80IA 47231033/- 2.4 It is further submits that the same deduction of Rs. 4,72,31,033/- as per above claimed by the appellant in the statement of total income on a different way, but ultimate amount of deduction is same as per above formula. Deduction claimed by the appellant in the statement of total income as under: Particulars Amount Profit after add or less as per STI Add: Depreciation allowable as per Income tax (+) 386800/- Less: Depreciation claimed in P & L as per companies Act (-) 7924946/- Less: Deduction claimed u/s. 80IA (-)39692887/- Ultimate Deduction as per section 80IA (-)47231033/- Copy of statement of total income highlighting the above amount is enclosing here with for your ready reference and record. 6. However, the learned CIT-A allowed the ground of appeal of the assessee in part by observing as under: 7. Main ground of appeal is regarding disallowances of depreciation of Rs. 79,24,946/ -. The fact is, as narrated above that the appellant has wrongly deducted depreciation of Rs. 79,24,946/- as against ....
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.... proceedings carried out under section 143(3) of the Act has been allowed by the ITAT in ITA No. 2582/AHD/2017. The copy of the order of the ITAT is placed on pages 126 to 134 of the paper book. Thus, we are of the view that once the deduction has been allowed under section 80-IA of the Act, even any disallowance is made relating to the eligible undertaking, is not going to extend any benefit to the Revenue in the given facts and circumstances. It is for the reason that the assessee shall be entitled for claiming deduction under section 80 IA of the Act of the higher amount. Thus, even we assume but without admitting that the disallowance has to be made on account of the depreciation in dispute, which will eventually result greater profit of the eligible undertaking which will be allowed as deduction under section 80 IA of the Act. Accordingly, we set-aside the finding of the ld. CIT-A and direct the AO to delete the addition made by him. Hence ground of appeal of the assessee is allowed. Now coming to the additional ground of appeal raised by the assessee. 11. The only interconnected issue raised by the assessee in the additional grounds of appeal is that the total inco....
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....er, it was submitted on behalf of the assessee that there is no perceptible distinction between the position of law qua cross objection in the matter of filing additional ground. It was submitted that a cross objection has all the trappings of a regular appeal more so in the light of language employed under s. 253(4) of the Act. 21.5 We find ourselves in agreement with the propositions made on behalf of the assessee that in a cross objection, there is no bar to raise legal issues for the first time before ITAT. A cross objection is like an appeal. It has all the trappings of an appeal. It is filed in the form of memorandum and it is required to be disposed in same manner as an appeal. Even where the appeal is withdrawn or dismissed for default, cross objection may nevertheless be heard and determined. Cross objection is nothing but an appeal, a cross appeal at that. This apart, raising of additional ground would only enable the authority concern to correctly assess the tax liability of the assessee. Similar view has been expressed by the co-ordinate bench in the case of ITO vs. Jasjit Singh (Del) in cross objection Nos. 138 to 142/Del/2014 interim order dated 23.09.20....
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....e assessee herein as obtained subsidy by way of reimbursement of interest under the scheme. The assessee has treated the aforesaid interest reimbursement subsidy mistakenly as revenue receipt in the P&L account and disclosed the same by way of net off from interest expenses. The taxable income was thus stated to be overstated to this extent. It was contended that the character of such subsidy in the hands of recipient assessee is capital in nature having regard to the purpose for which the subsidy was given i.e. acceleration of development of textile industry. 11.4 Reference was made to the notes forming part of the financial account detailing the interest subsidy aggregating to Rs. 2, 16,45,161/- as reduced from the interest costs. Our attention was also adverted to Notes to the Financial Statement wherein suitable disclosure was made towards claim of interest subsidy. 11.5 In the circumstances, it is the case of the assessee that where such subsidy is intended and bestowed not with the object of running the business but with a solemn object of attracting industrial investment or expansion, such interest subsidy is in the nature of capital receipt and theref....
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.... the file of the AO for verification of relevant factual aspects towards quantum of receipt of interest subsidy and relevant documentation in this regard, if so considered necessary in the opinion of the AO. The AO shall accordingly grant relief to the assessee in accordance with law in the light of our observations and shall exclude the subsidy from the ambit of taxation on being satisfied about the factual correctness on quantum of such subsidy. 15. In the result, the additional ground raised by the assessee in its cross objection is allowed for statistical purposes. 14.1 As the issue raised before us is identical to issue discussed above, therefore respectfully following the order of the coordinate bench discussed above, we admit the additional ground of appeal of the assessee and set aside the issue to the file of the AO for fresh adjudication as per the provisions of law and in the light of the order of the tribunal in the case of M/s Jindal worldwide limited discussed above. Hence the ground of appeal of the assessee is allowed for the statistical purposes. 14.2 Before parting, it is important to note that the appeal before us emanates from the order passed und....