Vedanta Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that initiation of re-assessment proceedings under section 148 of the Income Tax Act is liable to be quashed as without jurisdiction since revisionary proceedings under section 263 on the same issue was already dropped.
Facts- The assessee is a Company engaged in the business of manufacture and sale of aluminum as well as in the commercial power generation business. The return of the assessee was selected for scrutiny wherein the AO while framing the assessment order dated January 28, 2013 made an addition amounting to Rs. 2,06,19,999 u/s. 14A of the Income Tax Act, 1961 to the income under normal provision. CIT(A) vide order dated May 31, 2017 allowed the appeal of the Appellant and deleted the impugned addition made by the Id. AO. AO preferred an appeal before the Hon’ble ITAT. The Hon’ble ITAT vide order dated April 10, 2018 upheld the order of the Ld. CIT(A).
Notably, during the pendency of appeal before the CIT(A) against the original assessment order, re-assessment proceedings were also initiated by AO vide notice dated December 23, 2016, issued u/s. 148 of the Act. Addition made u/s 14A of the Act amounting to Rs. 2,06,19,999 not added back to the book profit of the Appellant u/s 115.JB of the Act and non claim of additional depreciation amounting to Rs. 15,49,26,546 resulting in excess claim of deduction u/s 80-IA of the Act were the reason for reopening.
