The Pune bench of Income Tax Appellate Tribunal ( ITAT ) directed to examine the allowability of the claim for the deduction of service tax made during the assessment proceedings.
The assessee, Technoforce Solutions (I) Private Limited, is engaged in the business of manufacturing of engineering goods. The Return of Income for the assessment year 2015-16 was filed on 19.11.2015 declaring total income of Rs.2,33,13,780/- and the same was revised on 24.05.2016 at a total income of Rs.5,45,59,680/-.
Thereafter the assessment was completed by the Deputy Commissioner of Income Tax accepting the returned income. However, while doing so, the Assessing Officer rejected the claim made during the course of assessment proceedings for deduction of service tax of Rs.40,82,852/-
Aggrieved by the order the Assesee filed appeal before the NFAC) , who held that the absence of claim made in the return of income or by filing revised return of income, the additional claim made during the course of assessment proceedings cannot be entertained. therefore the assessee filed the present appeal before the tribunal.
Assesee representative, Mashendra Kumar Mashi relied upon the decision of Bombay High Court in the case of CIT vs. Pruthvi Brokers & Shareholders, argued that there is no bar on the part of the appellate authority to entertain the additional claim in the absence of any statutory provisions.
Sapna Bhatia, the Department has no serious objection to remit the matter back to the file of the NFAC.
After reviewing the facts the tribunal observed that NFAC had fallen in serious error in not directing the Assessing Officer to examine the additional claim made during the course of assessment proceedings.
Therefore the two-member bench Of Inturi Rama Rao, ( Accountant Member ) and Partha Sarathi Chaudhury, ( Judicial Member ) directed to examine the allowability of the claim for the deduction of service tax made during the assessment proceedings.
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