Whether assessee can make fresh claim during assessment proceeding?

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Whether assessee can make fresh claim during assessment proceeding?

An assessee is entitled to make a fresh claim or modify a claim before the A.O. at any time before the completion of the assessment U/S 143(3). This view has been affirmed by judiciary as well.
There are various judicial pronouncements in favour of the assessee. Few of the landmark pronouncements are as under:
  1. Steel Ingots (P.) Ltd. Vs. C.I.T., 86 Taxman, p.440 (MP)
  2. C.I.T. Vs. Prabhu Steel Industries Pvt. Ltd., 171 ITR, p530, (Bom.)
  3. C.I.T. Vs. Bhopal Sugar Industries Ltd., 233 ITR, p.429 (MP)
  4. National Thermal Power Co.Ltd. Vs. C.I.T., 229 ITR, p.383 (SC)
  5. C.I.T. Vs. Motor Industries Co. Ltd., 229 ITR, p.137 (Karn.)
It may be noted that if an assessee has wrongly offered an item of income or omitted to claim a deduction in the return of income, he is entitled to correct the mistake during the course of assessment. Such correction of mistakes can be done by making a request to the A.O. This view has been affirmed in the following cases:
  1. D.I.T Vs. Pooran Mall & Sons, 96 ITR, p.390 (SC)
  2. C.I.T. Vs. Bharat General Reinsurance Co. Ltd., 81 ITR, p.303 (Delhi)
  3. Pt. Sheo Nath Prasad Sharma Vs. C.I.T., 66 ITR, p.647 (All.)
  4. The aforesaid proposition is also supported by the various judicial pronouncements, which lay down that the very purpose of assessment proceedings is to correctly assess the tax liability of an assessee in accordance with law.
Hope above cases would be useful for the taxpayers. Tax professionals can contact taxtalknew@gmail.com for any query or assistance during the course of assessment.
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