Case Law Details
La Opala Rg. Ltd. Vs DCIT (ITAT Kolkata)
The assessee was under compulsion to maintain a deposit with the electricity board to ensure supply of power to the unit and such interest income had first-degree nexus with the eligible undertaking of the assessee and accordingly the same would equally qualify for the deduction u/s 80IC of the Act.
Facts- The assessee company is engaged in the business of manufacturing Opal & Crystal Glassware and the sale of electricity generated from the wind farm. AO notes that for AY 2015-16 the assessee filed its return of income u/s. 139 of the Act declaring a total income of Rs.43,63,19,250/-. The case was selected for scrutiny and notice u/s. 143(2) was issued.
During the course of the hearing, the assessee was asked to furnish the details on the issues and the assessee submitted the same from time to time. AO assessed the total income at Rs.43,63,19,250/- u/s. 143(3) of the Act and issued a demand notice.
The assessee submitted its reply to the above observation on explaining the case that the issue relating to deduction u/s. 80IC as already been decided in their favour. However, CIT proceeded to conclude the revisional proceedings u/s. 263 of the Act by giving his direction to the AO to prepare the assessment afresh. CIT in the exercise of his powers u/s. 263 of the Act was of the view that the order of the AO was erroneous and prejudicial to the interest of the revenue and he was pleased to set aside the assessment order. Aggrieved by the said order the assessee filed an appeal before ITAT.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
