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2016 (1) TMI 224 - HC - Income TaxEntitlement to deduction under Section 80HHC - late filing of audit report - Held that:- The issue stands concluded against the revenue by the decision of this Court in Punjab Financial Corporation's case (2001 (12) TMI 50 - PUNJAB AND HARYANA High Court ) holding that the requirement of filing the duly audited report alongwith the return cannot be treated as mandatory and the assessee cannot be deprived of the benefit of deduction if the same is filed before the finalization of the assessment. It was further observed that sub section (5) of Section 32AB of the Act is not mandatory and the Assessing Officer has discretion to entertain the audit report even though it has not been filed with the return and give benefit of the deduction to the assessee in terms of section 32AB(1) of the Act. In view of the above, the Tribunal was justified in deciding the said issue in favour of the assessee. Expenditure incurred for employees - expenditure on food or beverages provided by the assessee to its employees in office, factory or other place of their work - whether is business expenditure and is an allowable deduction and not covered under the head entertainment expenses as held by ITAT - Held that:- Perusal of the order passed by the Tribunal shows that in the earlier years, it had allowed deduction to the extent of 50% only in respect of such expenses as the assessee had not maintained separate details of the expenditure. Herein the assessee had maintained separate details of such expenses and thus total deduction of the same had been rightly allowed in respect of such expenditure. We do not find any error in the approach of the Tribunal warranting interference. Consequently, this question is also answered against the revenue.
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