Case Law Details
Case Name : Deputy Commissioner of Income-tax Vs Vinbros & Co. (ITAT Chennai)
Appeal Number : IT Appeal NO. 1581 (Mds.) of 2012
Date of Judgement/Order : 29/01/2013
Related Assessment Year : 2009-10
Courts :
All ITAT ITAT Chennai
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ITAT CHENNAI BENCH ‘B’
Deputy Commissioner of Income-tax
Versus
Vinbros & Co.
IT Appeal NO. 1581 (Mds.) of 2012
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sec. 80IB means earn more & more but don’t pay taxes.
The litigation by revenue about deduction u/s 80 IB, clearly shows a case of un-necessary litigation. Certain incentives are extended by GOI through tax concessions. these concessions should be allowed in a purpose seeking manner. However, unfortuantely the revenue authoriteis are not acting in tune with the spirit and object of such concession and trying to deny the same on some or other ground without merit. It has also been heard that for such incentives,officers are trying to arm twist assessee to exort bribes otherwise they would simply deny the deduction. Some cases of arrest of some of officers also point to such situations.
Regarding disallwoance u/s 14A the facts are not fully known. However, it is clear that assessee had disputed applicaiton of S.14A, that is the reason that any disallownace was not made by assessee in the ROI. Many times AO asks for a computation in particular manner and the assessee furnishes the same, just to assist the AO in compilation of facts and figures. This cannot amount that assessee has agreed to such disallowance. The assesee should have filed computation under Rule 8D clearly stating “computation of amount alleged to be disallowable, as required by the AO” and without prejudice to assessees claim that S.14A is not applicable or that disaalowance should be restricted as per return.” It is not clear as to whether assessee made such statement.
However, so far the Tribunal is concerned, author feels that Tribunal should have considered the matter on merit and should not have confirmed disallwoance merely becasue disallownace was made as per computation U/R 8D submitted by the assessee to the AO. The fact that assessee had not made disallwoance as per Rule clearly shows that assessee had objected to applicability of S. 14A and / or Rule 8D. This decision of the Tribunal thus require reconsideration, In case assessee had submitted computation u/s 14A rwr. 8D to the AO , without prejudice to claim of assessee and based on other factual and documentary position assessee can make a case that assessee had insisted for no disallowance, then a rectification petition can be made befoe ITAT, for rectification of order which is based on presumption that assessee had conceded aout disallowance.