DY COMMISSIONER OF INCOME TAX Vs. TATA MOTORS LIMITED
INCOME TAX APPELLATE TRIBUNAL
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R.S. Syal, Accountant Member -
(1.) THIS appeal by the Revenue arises out of the order passed by the CIT(A) on 26.5.2005 in relation to the assessment year 1997-98.
(2.) The solitary grievance of the Revenue projected through various grounds is against the quashing of the proceedings initiated Under Section 147.
Briefly stated the facts of the case are that the assessment Under Section 143(3) was completed on 31.3.2000 determining the total income at Rs. 6220.127.116.117. Thereafter notice Under Section 148 was issued by the Assessing Officer on the following five counts:
1. It was noticed that the assessee had not included Custom Duty payable as on 31.03.1997 in respect of goods lying in bounded warehouse of Rs. 5.58 crores in the valuation of closing stock.
2. Sales-tax collection were omitted while arriving at total turnover for the purpose of allowance of deduction Under Section 80HHC of the Income-tax Act, 1961 and exclude compensation received from termination agreement from the profits of the business.
3. Provision for interest under pension scheme and doubtful debts and this should have been added to the total income.
4. The proportionate expenditure on scientific research claimed as deduction was not taken into account to arrive at the correct amount of profit.
5. Expenses/income pertaining in the earlier years debited to the Profit & Loss account has not been considered.
(3.) IN response, the assessee made detailed submission against the points taken note of by the Assessing Officer, which has been verbatim incorporated in the assessment order. Not satisfied, the Assessing Officer recomputed the total income by making addition, firstly on account of earlier years expenses debited to Profit & Loss Account at Rs. 5,67,25,173 and then, towards provision for doubtful debts at Rs. 1.45 crores. Accordingly, the amount of deduction Under Section 80HHC was also recomputed and the total income was determined at Rs. 570.33 crores. IN the first appeal, the assessee challenged the validity of notice issued Under Section 148 on the ground that the original assessment was completed Under Section 143(3) and the issuance of notice Under Section 148 on 28.3.2003 with reference to the assessment year 1997-98 was outside the time limit provided in proviso to Section 147. The learned CIT(A) concurred with the submissions advanced on behalf of the assessee and thus annulled the assessment.;
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