ACIT Vs Bharuch Dist. Central Co-op. Bank Ltd (ITAT Ahmedabad)
ITAT Ahmedabad held that if an assessee has failed/omitted to make a claim at the time of filing of return of income the same can be claimed during the course of appellate proceedings. Accordingly, claim placed before appellate authorities allowed.
Facts- AO erred by denying additional deduction u/s. 36(1)(viia) for an amount of Rs.45,00,000/- classified as Standard Assets Contingency Reserve in the Profit and Loss Account. The AO denied the deduction on the basis that this claim was not included in the return of income and could not be considered at the assessment stage.
CIT(Appeals) held that the assessee is entitled to the additional deduction of Rs.45,00,000/- u/s. 36(1)(viia) for the Standard Assets Contingency. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that CIT(Appeals) has correctly placed reliance on several decisions which have held that even if an assessee has failed/omitted to make a claim at the time of filing of return of income, still the assessee is permitted to make such claim during the course of appellate proceedings and the appellate authorities are also empowered to allow the claim of the assessee, in accordance with law.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
