In a recent ruling, the Kolkata bench, ITAT held that being an appellate authority, the tribunal, has the power to direct the assessing officer to admit a new claim which was not made by the assessee, in the original return.
the sole grievance of the assessee, in the instant case was that, the assessee omitted to make claim for deduction in respect to employees contribution to PF and ESI in the original return.They also failed to submit a revised return. Consequently, the assessing officer passed an order disallowing such amount. The officer relied upon the decision in Goetz India Ltd. Vs. CIT, in which it was held that the AO can entertain only those claims which have been claimed by the assessee by filing the return of income/revised return. If any deduction or any exemption has not been claimed by the assessee in the return of income filed by him, then normally the AO does not allow the claim because he is not authorized to entertain a fresh deduction or exemption which was not claimed by the assessee while filing the return of income/revised return.
The assessee contended that the Tribunal has enough power to admit the claim and admit the new grounds of appeal. According to them, it is the object of the Income tax Act to assess the true income of the assessee and to collect true tax from the assessee. In the instant case, the assessee has paid the PF contribution and ESI contribution before filing of return of income, therefore he is entitled to claim the deduction.
Concurring with the above contentions, the Tribunal observed that “the propositions canvassed by the ld. AR for the assessee are supported by the judgment of the Hon’ble ITAT, Kolkata in ITA No.1410/Kol/.2011 and CIT vs AIMIL Ltd. (2010) 321 ITR 508 (Del). Therefore we are of the view that the Hon’ble Supreme Court in the case of Goetze India Ltd. has held that the appellate authority being the Tribunal have the power to direct the AO to accept the claim of the assessee though the same has not been made in the original return nor has been done in the revised return. In this circumstances, respectfully following, the ratio laid down by the Hon’ble Supreme Court in the case of Goetz India Ltd., the AO is directed to grant the assessee’s claim of deduction on account of contribution to PF and ESI.”
Read the full text of the order below.
