TaxTMI 
TaxTMI 
2025 (12) TMI 1344
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....oking the provisions of section 147/148 without there being existence of any valid reason to believe that the income of appellant has escaped assessment. 2. On the facts and circumstances of the case and in the law the Ld. CIT(A) erred in upholding disallowance of deduction amounting to Rs. 13,96,53,930/- claimed by the appellant u/s 80IC the Income Tax Act, 1961 merely on the basis that ITR was filed belatedly u/s 139(4) for the AY 2010-11 of the I.T. Act, 1961 by invoking section 80AC of the Act. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorized Representative (ld. AR) of the assessee submits that appellant-authority was established by Central Government under the provisions of Special Economic Zone Act, 2005 (SEZ). The appellant authority was set-up to promote export in the country and to earn foreign exchange to the nation. The assessee authority was set-up as per mandate of section 34 of SEZ to carry out function of development, operation and management of SEZ. The assessee authority filed it return of income for AY 2010-11 on 25.03.2011 declaring nil income and claimed refund of Rs. 1,56,200/-. In the computation o....
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....IT(A) in first round of litigation examined the claim of assessee and passed order on merit. Neither the Assessing Officer nor PCIT can revise the order of First Appellate Authority. Grievance if any, against such order could be redressed only on filing further appeal before the Tribunal. The recourse of law adopted by Assessing Officer at the behest of PCIT is against the scheme of statutory provisions. To support his submission, the learned AR of the assessee relied upon the decision of Indian and Eastern Newspaper Society vs CIT AIR 1997, SC 1960, wherein the Hon'ble Apex Court held that reopening on the basis of information forwarded by audit cannot be considered as valid. Further, in case of CIT vs Green Wood Corporation (2009) 314 ITR 81, wherein, it was held that Assessing Officer cannot act as a subordinate officer obeying the direction of superior authority. If the assessment or re-assessment is carried out pursuant to direction of CIT/PCIT, the proceeding are render void and without jurisdiction. On the basis of aforesaid submission, the ld. AR submits that reassessment proceedings initiated by issue a notice under section 147 is without jurisdiction and subsequent action....
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....022] 140 taxmann.com 223(SC) * Nileshwar Rangekallu Chthu Vyavasaya Thozhiliali Sahakarana Sangham vs CIT [2023] 152 taxmann.com 347 (Kerala), * AA520 Veerappamapalayam Primary Agricultural Cooperative Society Ltd. Vs DCIT [2022] 138 taxmann.com 571 (Madras) * Suolificio Linea Italia (India) (P.) Ltd. Vs JCIT [2018] 93 taxmann.com 462(Calcutta) 6. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. We have also deliberated on various case laws relied by learned AR of the assessee. On perusal of contents of assessment order as well as order of ld. CIT(A), we find that ld. AR of the assessee has explained the fact correctly. Even otherwise, the facts are not in much dispute. There is no dispute that in first round of appeal before ld. CIT(A), the assessee was allowed deduction under section 80AB. It is an admitted fact that neither further appeal is filed by the Revenue nor the Assessing Officer made application for rectification of such order that deduction under section 80AB was allowed by learned CIT(A) by ignoring the provision of section 80AC. The Assessing Officer reopened th....
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....son had not furnished return of previous year within time allowed under section 139(1), the assessee could file return under section 139(4), before expiry of one year from the end of the relevant assessment year and is eligible for deduction under section 54. Further, Himachal Pradesh High Court in PCIT vs HP Housing and Urban Development Authority (supra) also held that where the assessee, State organization, filed return claiming deduction under section 80IB(10) beyond period of limitation as per section 139(1) on account of delay in audit and the assessee has reasonable and bona fide cause for not filing return in time, and tribunal concurrently held that assessee was entitle to claim specifically computed deduction, assessee was not to be burdened with taxes, which it was not otherwise not liable to page and the law. We also find that Delhi Tribunal in Fibrefill Engineers vs ACIT (2017) 83 taxmann.com 34 (Delhi-Trib) also held that deduction under section 80IC cannot be denied only on the basis of filing a belated return of income. It was also held that language of section 139 makes it clear that legislature itself has allowed the assessee to file return belatedly subject to fu....
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...., Chennai in Archid Chemicals and pharmaceuticals Limited (97 TD 277) that interest and other income, not having direct nexus with business activity, are not eligible for deduction u/s 80IB. 13. The ld. AR of the assessee submits that assessee filed return of income for AY 2012-13 on 13.09.2022. The case was selected for scrutiny and assessment was completed under section 143(3) dated 03.03.2015. In the assessment order, the assessee was allowed deduction under section 80AB. Subsequently, the assessment was revised by ld. PCIT by invoking his jurisdiction under section 263 in directing the Assessing Officer to reframe the assessment order. The Assessing Officer passed the fresh assessment order under section 143(3) r.w.s. 263 on 06.02.2017. The Assessing Officer while passing the fresh assessment order disallowed interest income of Rs. 2.72 Crore and other income of Rs. 5.62 Crore related to business activity of assessee. The Assessing Officer also disallowed excess depreciation of Rs. 35,98,500/- and disallowed lease rental of Rs. 22,32,038/- paid to Noida Authority for the want of TDS under section 194I. Aggrieved by the addition in the assessment order, the assessee filed app....
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....peration of business in SEZ area and related to the business activity of NSEZ. Therefore, other income of NSEZ is part and partial of its regular business activities and eligible for deduction u/s 80IAB. The interest income and other income mentioned above are inextricably connected to SEZ operation of NSEZ and it cannot be said that there is no nexus between the NSEZ Income and the Interest Income/other income. Interest income and other income of NSEZ are part of "profits and gains derived from the business of developing SEZ" and deduction of same should be allowed u/s 80IAB. Accordingly, Ld. CIT (A) has correctly allowed the deduction u/s 80IAB in respect of interest income and other income. 16. On the other hand, the ld. CIT-DR vehemently supported the order of Assessing Officer. The ld. CIT-DR submit that interest income has no direct nexus with the activities of the assessee. On the other receipt, the ld. CIT-DR submit that ld. CIT(A) allowed relief only on the submission of the assessee. The assessee has not proved that all the receipt are first degree income of the assessee. 17. We have considered the submission of both the parties and perused the orders of lower autho....