MEWAR POLYTEX LTD. Vs. I.T.O.

JUDGEMENT

(1.) This appeal by the assessee under Section 260-A of the Income Tax Act, 1961 ('the Act') is directed against the order dated 20.03.2009 passed in ITA No. 187/Ju/2008 by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ('ITAT') for the Assessment Year 2003-04 whereby, the ITAT has allowed the appeal filed by the Revenue and, while reversing the order dated 06.12.2007 passed by the Commissioner of Income Tax (Appeals), Udaipur ['CIT(A)'] in Appeal No. 23/ITA/UDR/2006-07, has restored the order of the Assessing Officer ('AO') dated 03.03.2006, which was passed on an application under Section 154 of the Act.

(2.) This appeal has been admitted for consideration on the following questions of law:-

(3.) The questions aforesaid have arisen in the backdrop of the following facts and circumstances: The appellant-assessee filed the return of income for the Assessment Year 2003-04 on 02.12.2003 declaring loss of Rs. 4,03,413/-, which was processed under Section 143(1) of the Act and the refund claim was allowed to the assessee. The case was, however, selected for scrutiny and notice under Section 143 (2) was issued. In the assessment order passed under Section 143(3) of the Act, the AO dealt with an issue concerning the claimed deduction under Section 80HHC of the Act and the deduction was allowed to the tune of Rs. 13,56,083/- as against that of Rs. 26,56,291/- claimed by the assessee. Deduction under Section 80IA was also allowed. The assessee had received interest under Section 244A on the refund for the assessment years 2001-02 and 2002-03 but had not shown as income in the computation. The interest received during the year was taken as income of the assessee and addition of Rs.40,714/- was made on that account in the total income. Ultimately, the assessee was assessed for an income of Rs. 19,13,490/-; and the AO ordered as under:- "Assessed. Issue demand notice and Challan. Charge interest u/s 234B, u/s 234D and interest allowed u/s 244A is withdrawn as per rule. Issue penalty notice u/s 271(1)(c) separately for filing of inaccurate particulars of income."