Goetze (India) Ltd. Vs CIT (Supreme Court of India)
The Supreme Court of India has addressed a procedural question under income tax law, ruling that an assessee cannot typically make a claim for a deduction during assessment proceedings simply by sending a letter to the Assessing Officer, without filing a revised return. Also Read: Assessee Can Raise new Claims Before AO Even After Revised Return Deadline
The case, involving Goetze (India) Ltd. and the Commissioner of Income Tax (CIT), stemmed from the assessment year 1995-96. According to the court’s order, the appellant company had filed its original income tax return on November 30, 1995. Subsequently, on January 12, 1998, while the assessment proceedings were underway, the company sought to claim a specific deduction by submitting a letter to the Assessing Officer.
The Assessing Officer declined to allow the claimed deduction. The basis for this disallowance was the absence of any provision within the Income Tax Act, 1961, that permits an assessee to modify their return of income or introduce new claims through a mere application or letter submitted at the assessment stage, without the formal step of filing a revised return as prescribed by the law.
Goetze (India) Ltd. challenged the Assessing Officer’s decision before the Commissioner (Appeals), who ruled in the company’s favour, allowing the deduction. However, the Income Tax Department pursued the matter further by filing an appeal before the Income Tax Appellate Tribunal (ITAT). The Tribunal sided with the department, overturning the Commissioner (Appeals)’s order and upholding the Assessing Officer’s initial decision to disallow the claim made outside of a revised return.
