Delhi HC allowed the withdrawal due to the employment of new workers.
A recent Delhi Supreme Court case found that the withdrawal may be due to the employment of new workers. According to the facts of the case, one company – International Tractor Limited – alleged that the company was active in the manufacture and assembly of tractors and tractor components. The company filed the tax return declaring its taxable income as Rs 147,83,25,740 / -. When submitting the return, the company was unable to claim the deduction in accordance with Section 80JJAA of the law or as an expense for the previous period.
The company asserted the deductions before the valuation agent through the declaration submitted to it, to which an auditor’s report in the form of 10DA was attached. The details of the expenses for the previous period were also provided by the company. The assessment officer declined to provide the two deductions claimed by the company and therefore assessed the assessee’s taxable income at Rs. 148,24,34, 100 / – video appraisal assignment. When the company was not satisfied with this order, it turned to the CIT with an appeal.
The CIT upheld the appeal and reversed AO’s order. The AO appealed to the Tribunal, in which the Tribunal stated that, under the contested order, the CIT had lawfully asserted the assessor’s new claims in relation to the deductions made under Section 80JJAA of the Act and the claims in question prior issues . According to the Bank of Delhi HC, pre-trial detention cannot be requested unless the tribunal gives a clear opinion on the matter at hand. As a result, the court overturned the tribunal’s judgment and upheld the company’s new claims to be approved by the CIT.