KDH Properties Pvt Ltd., CHENNAI V. DCIT, CHENNAI

ITA 1549/CHNY/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7776 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 16-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 06-07-2015
• Court: TRIBUNAL
• Department Lawyers: S SRIDHAR
• Assessee Lawyers: SHIVA SRINIVAS
• Keywords: Revised return
• Section: 143(3); 80IB

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , J UDICIAL MEMBER ./ I.T.A.NO. 2 648/MDS/2016 / ASSESSMENT YEAR :20 1 3 - 1 4 THE DEPUTY COMMISSIONER OF INCOME TAX , CORPORATE CIRCLE I I , MADURAI . VS. M/S. THE METAL POWDER CO. LTD., MARAVANKULAM, THIRUMANGALAM, MADURAI 625 706. [PAN: A A A C T4262E ] ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI SHIVA SRINIVAS , J CIT / RESPONDENT BY : SHRI S. SRIDHAR , ADVOCATE / DATE OF HEARING : 15 . 12 .201 6 / DATE OF P RONOUNCEMENT : 28 . 12 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 1 , MADURAI , DATED 2 3 .0 6 .201 6 RELE VANT TO THE ASSESSMENT YEAR 201 3 - 1 4 . THE REVENUE HAS CHALLENGED THE ORDER OF THE LD. CIT(A) IN DIRECTING THE ASSESSING OFFICER TO ALLOW THE MODIFIED QUANTUM OF DEDUCTION UNDER SECTION 80IB OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] BASED SOLELY ON THE I.T.A. NO . 2648 /M/ 16 2 CE RTIFICATE OF CA WITHOUT VERIFYING THE VERACITY OF THE CLAIM BY OBTAINING REPORT FROM THE ASSESSING OFFICER , WHICH IS PREJUDICIAL TO THE INTEREST OF REVENUE . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF NON - FERROUS METAL POWDER, ALUMINIUM PASTE AND GENERATION OF POWER THROUGH WINDMILL. THE ASSESSEE FILED ITS RETURN OF INCOME ON 30.11.2013 ADMITTING TOTAL INCOME OF .14,72,20,080/ - , WHICH WAS ACCEPTED UNDER SECTION 143(1) OF THE ACT. SUBSEQUENTLY, THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY AND THEREAFTER, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT ON 25.02.2016 BY DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT .18,19,09,080/ - AFTER MAKING VARIOUS ADDITION/DISALL OWANCE. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND CONSIDERING ENTIRE FACTS OF THE CASE INCLUDING THE CERTIFICATE ISSUED BY THE C.A., THE LD. CIT(A) PARTLY ALLOWED THE APPEAL FILED BY THE ASSESSEE. 4. ON BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. DR HAS MAINLY CONTENDED THAT WITHOUT GIVING AN I.T.A. NO . 2648 /M/ 16 3 OPPORTUNITY OF HEARING TO THE ASSESSING OFFICER, THE LD. CIT(A) ADMITTED THE CERTIFICATE ISSUED BY THE C. A., WHICH IS PREJUDICIAL TO THE INTEREST OF REVENUE AND PLEADED THAT THE MATTER SHOULD BE REMITTED BACK TO THE ASSESSING OFFICER FOR VERIFICATION. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). 5. WE HA VE HEARD BOTH SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS OBSERVED THAT THE ASSESSEE HAS CLAIMED DEDUCTION UNDER SECTION 80IB OF THE ACT AT .63,37,61 5/ - IN THE RETURN OF INCOME FILED. HOWEVER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE CLAIMED .1,05,89,129/ - AS DEDUCTION UNDER SECTION 80IB OF THE ACT. THE ASSESSING OFFICER DID NOT ALLOW THE SAME ON THE GROUND THAT ANY NEW CLAIM COULD BE MADE ONLY BY FILING THE REVISED RETURN AND THE SAME COULD NOT BE CLAIMED BY SUBMITTING A REVISED STATEMENT OF TOTAL INCOME BY MEANS OF A LETTER . DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE FILED FORM 10CCB DATED 20.09.2013 OBTAINED FROM THE C A CERTIFYING THAT THE DEDUCTION UNDER SECTION 80IB WAS .1,05,89,129/ - . IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT IT WAS ONLY A MISTAKE COMMITTED BY THE PERSON WHO ENTERED THE DATA WHILE FILING THE RETURN ELECTRONICALLY, I.T.A. NO . 2648 /M/ 16 4 WHEREAS, THE ASSESSEE HAS OBTAINED SUCH CERTIFICATE IN FORM NO. 10CCB BEFORE THE DATE OF FILING THE RETURN AND PLEADED THAT THE MISTAKE WAS GENUINE AND BONAFIDE AND THE ASSESSING OFFICER SHOULD HAVE ALLOWED THE DEDUCTION AS PER THE CERTIFICATE GIVEN BY THE CA. HOWEVER, THE ASSESSING OFFICER, DURING THE COURSE OF ASSESSMENT PROCEEDINGS, WHEN T HE ASSESSEE HAS CLAIMED SUCH REVISED DEDUCTION BY MEANS OF FILING REVISED STATEMENT, REJECTED THE CLAIM OF THE ASSESSEE. AFTER VERIFYING THE DETAILS AVAILABLE ON RECORD , THE LD. CIT(A) HAS OBSERVED THAT THE CERTIFICATE IN QUESTION WAS OBTAINED ON 20.09.201 3 PRIOR TO FILING OF THE RETURN OF INCOME ON 30.11.2013. 6. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS NOT MADE ANY ADDITIONAL CLAIM OR NEW CLAIM IS REQUIRED TO BE MADE IN THE FORM OF REVISED RETURN. ONLY THE FIGURES ENTERED BY THE PERSON ELECTRONICALLY COMMITTED THE MISTAKE BY ENTERING WRONG FIGURE. ON CAREFULLY GOING THROUGH THE ORDERS OF AUTHORITIES BELOW, WE FIND THAT I T MAY BE A MISTAKE WHILE ENTERING THE DATA AT THE TIME OF FILING THE RETURN ELECTRONICALLY, BUT, THE ASSESSING OFFICER OUT RIGHTLY REJECTED WITHOUT VERIFYING THE CLAIM OF THE ASSESSEE. THEREFORE, WE ARE OF THE OPINION THAT THE ASSESSING OFFICER SHOULD HAVE ALLOWED THE CLAIM OF THE ASSESSEE, WHICH WAS SUBMITTED DURING THE COURSE OF I.T.A. NO . 2648 /M/ 16 5 ASSESSMENT PROCEEDI NGS, AFTER MAKING VERIFICATION. ADMITTEDLY, IT CAN NOT BE SAID THAT IT IS A FRESH CLAIM S INCE IT WAS A FACT THAT THE CERTIFICATE WAS OBTAINED BY THE ASSESSEE WELL BEFORE FILING OF ITS RETURN AND THERE MAY BE A MISTAKE OF ENTERING THE CORRECT FIGURE. SINCE T HE ASSESSING OFFICER FAILED TO VERIFY THE CLAIM OF THE ASSESSEE, WE DIRECT THE ASSESSING OFFICER TO VERIFY THE ENTIRE RECORDS AND ALLOW THE CLAIM OF DEDUCTION IN ACCORDANCE WITH LAW AFTER ALLOWING OPPORTUNITY OF HEARING TO THE ASSESSEE . 7 . IN THE RESUL T, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 28 TH DECEMBER , 201 6 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 28 . 12 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.