Titan Company Limited Vs ACIT (ITAT Chennai)
ITAT Chennai held that initiation of proceedings under section 147 of the Income Tax Act confirmed by CIT(A) based upon correct understanding and appreciation of facts of the case vis-à-vis contemporaneous statute justifiable.
Facts- AO had initiated u/s 147 proceedings for two reasons firstly that as per form 10CCB for the new undertaking, established by the assessee in Pant Nagar district of Uttranchal State, a claim of Rs. 3,72,05,815/- was made u/s 80C(2)(a)(ii) was made. The new undertaking commenced its operations w.e.f 29.03.2010 and the same being initial one the assessee was entitled to claim deduction u/s 80IC from AY-2010-11. The impugned entity had incurred a loss of Rs. 2,12,94,977/- in previous year 2009-10. It was noted that while computing deduction u/s 80IC for 2011-12 the impugned loss was omitted to be set off before allowing the said deductions. Secondly, AO noted that the assessee had wrongly claimed bad debts deduction of Rs. 29,52,60,000/-.
Conclusion- Held that the order of the Ld. First Appellate Authority shows that he has comprehensively analyzed various facets of the controversy and concluded that the initiation of proceedings u/s 147 in appellant’s case is based upon correct understanding and appreciation of the facts of the case viz a viz contemporaneous statute. Accordingly we are of the view that no interference is required to be made to the decision of Ld.CIT(A).
