Law:

Section:

[2009] 308 ITR 434 (KER.) HIGH COURT OF KERALA Kerala Financial Corporation v. Joint Commissioner of Income-tax C.N. RAMACHANDRAN NAIR, J. O.P. NO. 26473 OF 2000 DECEMBER 19, 2007 Section 147 of the Income-tax Act, 1961 - Income Escaping Assessment - General Where deduction under section 36(1)(viii ) was allowed despite fact that there was no income after setting off losses, reassessment was justified [Assessment year 1992-93] [In favour of revenue] Kerala Financial Corporation v. Jt. CIT [2009] 308 ITR 434 /221 CTR (Ker.) 613 On the basis of the assessee's original return entire income declared was set off against brought forward losses relating to earlier years. Thereafter, the assessee filed another return whereunder the total income shown was again was completely set off against carry forward loss of earlier years. The income from business covered by the revised return was Rs. 53,53,096 which was computed after claiming deduction of Rs. 35,68,730 under section 36(1)(viii). The assessment was completed under section 143(1), accepting the return filed by the assessee and without making any variation of the income returned. Subsequently, the Assessing Officer noticed that the assessee's claim for deduction under section 36(1)(viii) was not permissible because there was no income available after setting off of carry forward losses. Consequently, the Assessing Officer issued notice under section 148 and revised the assessment under section 147. Held that, admittedly, the assessee was not entitled to claim deduction under section 36(1)(viii) and the assessee by making the claim was trying whether the officer could be persuaded to commit a mistake and get the claim approved. The assessee initially succeeded because the officer accepted the return probably because the assessee being a Government of Kerala concern was not expected to make a bogus claim in the return filed. However, the question to be considered was whether the assessee could be the beneficiary of its own fraud or mistake and whether the Assessing Officer was prevented from correcting the same under section 147. It was to be noted that the Explanation to section 147(2) specifically provides that the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492