Case Law Details
Valco Industries Ltd Vs ACIT (ITAT Chandigarh)
Facts-
The assessee originally filed return declaring total income of Rs.4,83,83,620/- on 28.09.2012 after claiming deduction of Rs.5,75,64,789/- u/s 80IC of the Act. The assessment was completed u/s 143(3) of the Act on 27.03.2015 at an income of Rs.8,07,03,620/- after making an addition of Rs.3,23,20,000/- on account of share of assessee company in industrial property by making the calculation of the share of the assessee company at 20%. Subsequently, notice u/s 148 of the Act dated 10.03.2017 was issued.
In response to the notice issued u/s 148 of the Act, the assessee intimated the AO that the return already filed u/s 139(1) of the Act may be treated as return in response to notice u/s 148 of the Act and also requested the AO to supply the copy of reasons recorded for reopening of the case. Thereafter, the assessee filed objections against the issuance of notice u/s 148 of the Act which were disposed off by the AO rejecting the assessee’s objection against the issuance of notice u/s 148 of the Act. Thereafter, the assessment was finalized in terms of section 147 r.w.s. 143(3) of the Act after making a disallowance of Rs.4,09,45,317/- being alleged excess claim of deduction u/s 80IC of the Act. Another addition of Rs.48,43,000/- was made on account of difference in share of the assessee company in industrial property. The assessment was completed at Rs.12,64,93,000/-.
Aggrieved, the assessee carried the matter before the Learned First Appellate Authority challenging the invocation of jurisdiction u/s 147 of the Act on legal grounds. The assessee also challenged the disallowances/additions on merits. The Ld.CIT(A) dismissed the assessee’s legal challenge to the invocation of jurisdiction u/s 148 of the Act. On merits, the Ld.CIT(A) upheld the addition on account of difference in the share percentage in industrial property. The Ld.CIT(A) also upheld the disallowance made u/s 80IC of the Act. Aggrieved, the assessee has now approached this Tribunal.
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