NAGARAJ AND COMPANY PVT. LTD. Vs. ASSISTANT COMMISSIONER OF INCOME TAX
LAWS(MAD)-2020-3-223
HIGH COURT OF MADRAS
Decided on March 10,2020

Nagaraj And Company Pvt. Ltd. Appellant
VERSUS
ASSISTANT COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

ABDUL QUDDHOSE,J. - (1.) The assessee has filed these appeals under Section 260-A of the Income Tax Act, 1961 aggrieved by the common order dated 11.10.2012 passed by the Income Tax Appellate Tribunal 'D'? Bench, Chennai. Brief facts leading to the filing of these Tax Case Appeals:
(2.) The assessee who is the Appellant herein has filed returns of income tax for the Assessment Years 2003-04 and 2004-05. It is the case of the Appellant/Assessee that they omitted to claim deduction for the interest amounts paid by them to Industrial Development Bank of India (in short "IDBI"?) under Section 43B of the Income Tax Act. It is their case that after noticing the mistake of omitting to claim deduction for interest payments, they filed separate petitions under Section 154 of the Income Tax Act, 1961 seeking rectification of the mistake on account of the said omission. The Assessing Officer rejected the rectification petitions on 06.06.2007 by separate orders on the ground that the mistake is not apparent from the record as it involves debatable point of law. Aggrieved by the separate orders dated 06.06.2007 passed by the Assessing Officer, the Appellant/Assessee preferred the statutory appeals before the Commissioner of Income Tax (Appeals)-VI, Chennai in ITA.No.194/10-11 and ITA.No.193/10-11. The Commissioner of Income Tax (Appeals)-VI, Chennai confirmed the orders of the Assessing Officer by dismissing the appeals on 28.11.2011 by separate orders on the ground that merely by relying on figures given in financial statements, one cannot arrive at the amount allowable under Section 43B especially when the quantum of principal and interest waived in one time settlement is not apparent from record. Aggrieved by the separate orders dated 28.11.2011 for the respective assessment years, the Appellant/Assessee preferred separate Appeals before the Income Tax Appellate Tribunal, 'D' Bench, Chennai in ITA.No.200/Mds/2012 and ITA.No.199/Mds/2012. The Income Tax Appellate Tribunal by a common order dated 11.10.2012 for both the Assessment Years dismissed the Appeals and confirmed the findings of the Assessing Officer as well as the Commissioner of Income Tax (Appeals)-VI on the ground that when the Assessments have been completed based on the computation of income filed by the Appellant/Assessee, it cannot be stated that such assessments suffered from any mistake apparent from record on an item of expenditure never claimed by the Assessee for allowance. Aggrieved by the common order dated 11.10.2012 passed by the Income Tax Appellate Tribunal, these Tax Case Appeals have been filed under Section 260-A of the Income Tax Act, 1961.
(3.) The following substantial questions of law have been raised by the Appellant/Assessee in the grounds of both the tax case appeals: "1.Whether on the facts and circumstances of the case, the Tribunal was right in holding that the Appellant's claim for allowing outstanding interest on loans paid to IDBI under section 43B was not a rectifiable issue coming within the purview of Sec 154 of the Act? 2.Whether on the facts and circumstances of the case, the Tribunal was right in holding that the CBDT Circular No.669 dt 25.10.1993 is not applicable to the facts of the case?";


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