Case Law Details
Tolani Shipping Co. Ltd. Vs DCIT (ITAT Mumbai)
The issue under consideration is whether the assessee is seeking change in Income Tax Return by way of raising additional grounds of appeal in front of the tribunal and not filing Revised return will be entertained by the Tribunal?
ITAT states that, in additional grounds of appeal, the assessee is seeking exclusion of all the above stated items while computing book profits u/s 115JB. So far as all these grounds are concerned, they find that lower authorities refused to admit the assessee’s revised computation of income in terms of ratio of Hon’ble Apex Court rendered in Goetz India Ltd. V/s CIT 284 ITR 323 which mandate the assessee to claim deduction by filing a revised return only. No findings on merits have been rendered by lower authorities on any of these issues. It is settled law that there is no bar on the appellate authorities to entertain the same. Further, equity demands that correct income of the assessee be ascertained. Therefore, without delving much deeper, keeping all the issues open, ITAT direct Ld.AO to consider all these claims and remit the matter back to the file of Ld. AO. The Ld. AO is directed to adjudicate the same in the light of the submissions made by the assessee that the aforesaid items would constitute business income for the assessee and secondly, these arises out of shipping business being carried out by the assessee. These grounds stand allowed for statistical purposes.
FULL TEXT OF THE ITAT JUDGEMENT
1.1 The captioned cross-appeals for Assessment Years (AY) 2011-12 and 2012-13 contest common order of Ld. Commissioner of Income Tax (Appeals)-10 [in short CIT(A)], Mumbai, Appeal Nos. CIT(A)-10/DCIT-5(3)(2)/278 & 279/2015-16 dated 10/04/2017. It is admitted position that adjudication in any one year shall apply to other years also. First, we take up cross-appeals for AY 2011-12.
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