SILVER IMPEX Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(DLH)-2007-7-299
HIGH COURT OF DELHI
Decided on July 24,2007

Silver Impex Appellant
VERSUS
ASSISTANT COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

V.B.GUPTA, J. - (1.) THE assessee filed the present appeal under s. 260A of the IT Act, 1961 (for short as 'Act') against the order dt. 24th pertaining to the asst. yr. 1995 -96. declaring gross total income of Rs. 60,60,858 and the income disclosed in the revised return was also "Nil". The revised return was processed and deduction of Rs. 49,18,171 was allowed under s. 80HHC and the income of the assessee was assessed under s. 143(1)(a) of the Act at Rs. 11,42,867 and accordingly tax demand of Rs. 10,21,710 was raised.
(2.) THIS addition made under s. 143(1)(a) of the Act was confirmed by the Commissioner of Income -tax (Appeals) ['CIT 2000 passed in ITA No. 4545 of 1998. The Tribunal held that while processing the return under s. 143(1)(a) of the Act, no disallowance can be made under s. 80HHC. income of the assessee was assessed at Rs. 11,42,686 by allowing deduction under s. 80HHC of Rs. 49,18,171 instead of Rs. 60,60,858 as claimed by the assessee. However, no demand was raised under s. 143(3) of the Act because the same has already been raised under s. 143(1)(a) of the Act. 2000 passed by the Tribunal, the demand created under s. 143(1)(a) of the Act was revised to "Nil". Therefore, Income - tax computation form prepared after passing of an order under s. 143(3) of the Act was required to be amended which would now create demand under s. 143(3) of the Act. Accordingly, opportunity was given to the assessee who submitted that deduction claim by him under s. 80HHC amounting to Rs. 60,60,858 has been allowed entirely by the Tribunal and as such the same should be allowed under s. 143(3) of the Act.
(3.) THE AO did not agree with the submissions of the assessee, as the Tribunal in its order has nowhere mentioned that the deduction claimed by the assessee under s. 80HHC amounting to Rs. 60,60,858 has been allowed entirely. It was further held by the AO that the assessee has not challenged before the Tribunal the computation of deduction under s. 80HHC during the processing of the return under s. 143(1)(a) of the Act. interfere with the computation. The assessee then filed an appeal against the order of CIT(A), and vide impugned order, the Tribunal dismissed the appeal of assessee.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.