Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

Even otherwise, if the assessee is paying tax at the maximum marginal rate for the preceeding year as well as for the year under consideration then it shall have no revenue effect and incaseas there is no taxable income for the preceeding year then the said claim of business loss on account of sales return is otherwise eligible for carryforward and is an allowable deduction for the year under consideration.

Shanti Prime Publication Pvt. Ltd.

Section 263 of the Income Tax Act, 1961- If CIT in the revision proceedings has decided the issue and determining the dispute then it is not open to the A.O. to decide the said issue but the A.O. has just to give effect to the finding of CIT and in those circumstances the assessee cannot agitate the said point already decided by CIT in the revision proceedings in the appeal filed against the order passed by the A.O pursuant to the revision order.

Facts: Disallowance made by A.O. was deleted by CIT(A) on the ground that it is only a mistake of entry in the books of account made by the assessee for the A.Y. 2011-12 in place of A.Y. 2010-11. Revenue submitted that since the assessment order was passed by the A.O. in pursuant to the revision order passed U/s 263, therefore, the assessee cannot agitate this issue in these proceedings when the assessee did not challenge the revision order passed U/s 263.

Held, that Pr.CIT in the revision proceedings U/s 263 has taken up an issue of allowability of claim of sales return of Rs. 13.00 lacs and has observed in the order passed U/s 263 that the A.O. did not make enquiry regarding the allowability of the claim which should have been made by him. Thus, making a reference to the explanation to Section 263, he has held that the order passed by the A.O. without conducting enquiry regarding the claim of deduction on account of sales return of Rs. 13.00 lacs are erroneous and prejudicial to the interests of the revenue. The ld. Pr.CIT, accordingly, set aside the original assessment order passed U/s 143(3) and directed the A.O. to make fresh assessment after conducting a proper enquiry regarding the allowability of claim of expenses of Rs. 13.00 lacs. Thus, it is manifest from the record that there was no concluding finding given by Pr.CIT on the issue of allowability of claim of Rs. 13.00 lacs on account of sales return. There is no quarrel on the point that if CIT in the revision proceedings has decided the issue and determining the dispute then it is not open to the A.O. to decide the said issue but the A.O. has just to give effect to the finding of CIT and in those circumstances the assessee cannot agitate the said point already decided by CIT in the revision proceedings in the appeal filed against the order passed by the A.O pursuant to the revision order. - ITO V/s ELEGANT BUILDHOME PVT. LTD. - [2020] 26 ITCD Online 097 (ITAT-JAIPUR)