Captain Steel India Ltd. Vs DCIT (ITAT Kolkata)
The assessee appealed against the order dated 28.04.2022 passed by the Commissioner of Income Tax (Appeals)-20, Kolkata, arising from an intimation under Section 143(1) dated 08.05.2020 issued by CPC, Bengaluru. The sole issue before the Tribunal was the disallowance of the assessee’s claim for deduction under Section 80JJAA of the Income-tax Act, 1961.
The assessee submitted that the deduction under Section 80JJAA had not been claimed in the return of income. After the return was processed under Section 143(1), the assessee filed an appeal before the CIT(A) against the prima facie adjustments and raised the Section 80JJAA claim through an additional ground of appeal. It stated that employee benefit expenses had increased from ₹15,82,59,141 in the preceding year to ₹24,77,20,581, resulting in an increase of ₹8,94,61,440, and claimed eligibility for a deduction of ₹61,64,176 under Section 80JJAA. To support the claim, the assessee relied on the decisions of the Delhi High Court in International Tractors Ltd. and the Karnataka High Court in Texus Instruments India Pvt. Ltd., and furnished Form 10DA certifying the addition of new employees.
The assessee further contended that appellate authorities were empowered to entertain a fresh claim even if it had not been made in the original return, relying upon several judicial decisions, including Goetze (India) Ltd. v. CIT, Jute Corporation of India Ltd., National Thermal Power Company Ltd., Pruthvi Brokers & Shareholders Pvt. Ltd., Jai Parabolic Springs Ltd., and others. It also pointed out that, in its own case for Assessment Years 2018-19 and 2020-21, the CIT(A) had already allowed deduction under Section 80JJAA.
