INCOME TAX ACT, 1961

Section 153A

Search and seizure - Assessment under section 153A - Admissibility of fresh claim - No consideration on part of CT(A) for assessee's own case for earlier year

Revenue was aggrieved by order of CIT(A), wherein issue was as to whether in proceedings under section 153A, a fresh claim can be allowed or not. CIT(A) held that at time of search, it was a pending assessment as notice under section 143(2) was already issued. Therefore, assessee's claim could be entertained as it was a case of pending assessment and not of completed assessment. Further, on issue of allowability of deduction on account of interest on excise duty pertaining to earlier years in the year under consideration, CIT(A) decided same in favour of assessee. Case of revenue was that order of CIT(A) was cryptic in nature. Held: CIT(A) would have been right to entertain claim of assessee for deduction on account of interest on excise duty pertaining to earlier years in the year under consideration keeping in view the observations made by the Tribunal in its order passed in assessee's case for assessment year 2009-10. Fact was not considered that assessment proceedings initiated by the AO for year under consideration under section 143(2) had got merged as a result of search with the proceedings under section 153A, which were open. CIT(A) further failed to take note of a very relevant and material fact that the interest charged by Customs and Central Excise Settlement Commission was reduced by Delhi High Court and the liability of the assessee on account of the said interest after adjusting the amount/already paid by assessee was reduced. That clearly showed non-application of mind by CIT(A) to relevant and material facts having a direct bearing on the quantum of liability of the assessee on account of interest in question,. Matter was remitted back to CIT(A) for deciding same afresh.

REFERRED : CIT (Central)-III v. Kabul Chawla (2015) 380 ITR 573 (Del-HC) : 2015 TaxPub(DT) 3486 (Del-HC), Lok Nath Prasad Gupta v. UOI [W.P. (C) No. 2196 of 2008, dt. 13-4-2012], Maynak Poddar (HUF) v. WTO (2003) 262 ITR 633 (Cal.) : 2003 TaxPub(DT) 1055 (Cal-HC), Sail DSP VR Employees Association 1998 v. UOI & Ors. (2003) 262 ITR 638 (Cal.) : 2003 TaxPub(DT) 1051 (Cal-HC), CIT v. Bhaskar Mitter (1994) 73 Taxman 437 (Cal.), Lok Nath PD. Gupta v. Dy. CIT Central Circle-XXV, Kolkata [ITA. No. 1096/KOL/ 2014, dt. 10-6-2015], Dy.CIT, CC-XXV, Kolkata v. Loknath PD. Gupta (Ind.) 2015 TaxPub(DT) 2703 (Kol-Trib), Dy. CIT v. Sanmukhdas Wadhwani. (2003) 85 ITD 734 (Nag-Trib) : 2003 TaxPub(DT) 608 (Nag-Trib).

FAVOUR : Matter remanded.

A.Y. :

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