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2016 (10) TMI 1282 - AT - Income TaxClaim of deduction u/s 80IB - assessee has not filed the return within the due date specified u/s 139(1) - HELD THAT:- In the present case the assessee had filed the return after the due date on 21-02-2008. The small distinction referred by the assessee that the audit reports were filed within time on 31-10-2007 cannot lead to in-application of Hon’ble Calcutta High Court decision M/S SHELCON PROPERTIES (P) LTD [2015 (3) TMI 579 - CALCUTTA HIGH COURT] in this case. Hence the undisputed fact remains that the assessee has not filed the return within the due date specified u/s 139(1) and hence the provisions of section 80AC comes into play and the assessee shall not be allowed deduction u/s 80IB. Disallowance of interest - Non deduction of TDS - Deduction u/s 40(a)(ia) - CIT(Appeals) in this case has upheld the AO’s action only on the ground that since TDS has not been deducted u/s 40(a)(ia) the amount of expenditure cannot be allowed - HELD THAT:- It is settled law from Hon’ble Apex Court in the case of Vegetable Products [1973 (1) TMI 1 - SUPREME COURT] that when two constructions are possible, the one in favour of the assessee should be applied. Accordingly in view of the above precedent, it is of the considered opinion that the assessee deserves benefit if the payees of the interest have filed their returns and paid taxes thereon. Since this aspect need factual verification, remit this issue to the file of the AO to consider the issue afresh in accordance with the Hon’ble Delhi High Court decision ANSAL LAND MARK TOWNSHIP (P) LTD. [2015 (9) TMI 79 - DELHI HIGH COURT] - Appeal filed by the assessee stands partly allowed for statistical purposes.
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