COMMISSIONER OF INCOME TAX Vs. PANDIAN HOTELS LTD

JUDGEMENT

(1.) THE above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in ITA.No.353/Mds/2000, dated 11.03.2005.

(2.) THE Revenue is the appellant. THE assessment year involved is 1989-90. THE original assessment in the case of the assessee company was completed on 23.3.92 quantifying the total income at Rs.17,80,020/-. This was appealed against and the assessment was revised giving effect to the order of the CIT(Appeals) and the revised total income was quantified at Rs.9,39,070/-. THE assessing officer noted that in the original assessment, claim under Section 80HHD of Rs.5,92,979/- was allowed to the assessee, although, it had not filed the required certificate from the Chartered Accountant. As a consequence, the assessing officer found that the income assessable to tax had escaped assessment within the meaning of Section 147 of the Act. Thus to tax the above escaped income, notice was issued under Section 148 of the Act. THE assessee filed a reply on 14.9.98 objecting to the reopening of the assessment and also stated that the return filed on 29.12.89 may be treated as a return filed in response to the notice under Section 148 of the Act. In result, the assessing officer disallowed the claim on the ground that the return was filed on 29.12.1989 and with the said return the audit report as required under the statute was not filed.

(3.) IT is fairly conceded by the learned counsel for the appellant that the issue involved in this case is squarely covered by a decision of Punjab and Haryana High Court in 228 ITR 292 (C.I.T., Vs. Shahzedanand Charity Trust).