Case Law Details
C and E Limited Vs PCIT (Calcutta High Court)
Introduction: In the legal battle between C & E Limited and PCIT (Principal Commissioner of Income Tax) presented before the Calcutta High Court, a significant question arises: Whether a deduction under Section 80IC can be disallowed in a subsequent year after it has been allowed in the initial assessment year. This case not only highlights legal nuances but also impacts income tax assessments in various scenarios.
Analysis: The contention revolves around the substantial expansion that took place on February 13, 2012, reflecting in Form 10CCB for Assessment Year 2012-13. The Assessing Officer accepted the claim of 100% deduction, and the order attained finality. However, the PCIT later challenged the assessment and sought to disallow the deduction.
1. Assessment Officer’s Approval: The Assessing Officer conducted a thorough investigation and accepted the claim for 100% deduction in the AY 2012-13, with subsequent orders attaining finality.
2. Challenge by PCIT: The PCIT challenged the order, asserting improper verification before accepting the claim for deduction under Section 80IC. This led to a legal tussle in the tribunal.
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