Delhi High Court - Orders
The Pr. Commissioner Of Income Tax -6 vs National Building Construction ... on 1 February, 2024
Author: Yashwant Varma
Bench: Yashwant Varma, Purushaindra Kumar Kaurav
$~15
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 346/2019
THE PR. COMMISSIONER OF INCOME TAX -6
..... Appellant
Through: Mr. Ruchir Bhatia, Sr. SC with
Ms. Deeksha Gupta, Adv.
versus
NATIONAL BUILDING CONSTRUCTION CORPORATION
LTD. ..... Respondent
Through: Appearance not given
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA
HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR
KAURAV
ORDER
% 01.02.2024
1. The instant appeal is directed against the order of the Income Tax Appellate Tribunal ["ITAT"] dated 14 May 2018. The Revenue appears to have approached the ITAT aggrieved by the following directions as framed by the Commissioner of Income Tax, Appeals ["CIT(A)"] in its order dated 12 December 2014:-
"...In the instant case the appellant has duly filed before the AO the Audit Report in form No. 10CCB together with Annexures thereto while claiming the deduction u/s 10A in the revised computation of income in the AY 2011-12. It is also seen that AY 2011-12 is the initial assessment year from which the deduction is being claimed by the assessee. AO has not examined whether the assessee fulfills the conditions of sec 80IA. AO simply rejected the claim of deduction by applying the ratio of Supreme Court in the case of Goetze India Ltd. In view of the above legal positions, AO is, therefore, directed to verify whether conditions specified in sec 80IA are fulfilled by the assessee. If the assessee fulfills the conditions specified therein the AO is directed to allow deductions claimed u/s 80IA.Therefore, the appeal is allowed in this ground with direction to the AO."
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2. One of the principal questions which is raised by Mr. Bhatia, learned counsel appearing in support of the appeal, is that the assessee never claimed the benefits of Section 80IA of the Income Tax Act, 1961 ["Act"] in the original Return of Income which was submitted. It is in the aforesaid context that Mr. Bhatia draws our attention to Section 80A(5) which reads as follows:-
"80A. Deductions to be made in computing total income xxx xxx xxx (5) Where the assessee fails to make a claim in his return of income for any deduction under Section 10A or Section 10AA or Section 10B or Section 10BA or under any provision of this chapter under the heading "C.--Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder."
3. According to Mr. Bhatia, the aforesaid issues stand answered in favor of the Revenue in light of the judgment rendered by the Gujarat High Court in Rachna Infrastructure Pvt. Ltd. vs. Principal Commissioner of Income-Tax [2022:GUJHC:8699-DB] and that of the Supreme Court in Goetze (India) Ltd. vs. CIT [(2006) 284 ITR 323].
4. We consequently admit the instant appeal on the following question of law:-
A. Whether on the facts and in the circumstances of the case & in law, the ITAT erred in confirming the order of CIT (A) in directing the Assessing Officer to verify whether the conditions specified in Section 80IA are fulfilled notwithstanding such a claim having not been raised in the Return of Income?
5. The Court grants liberty to learned counsels for respective parties to place a Brief Synopsis of Submissions as well as a compilation of judgments which are proposed to be relied upon be placed on record at least 48 hours prior to the date fixed. Those This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:53:40 submissions shall refer to the pdf page numbers of the digital record of the Court wherever so required.
6. List again on 13.02.2024.
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
FEBRUARY 01, 2024/neha This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 06/02/2024 at 20:53:41