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2016 (4) TMI 645 - AT - Income TaxDisallowance of deduction u/s 80IB(10) - audit report required u/s 44AB - Held that:- In section 80IB(13) of the Act it has been provided that the provisions of section 80IA(5) and 80IA (7) to (12) shall apply to the eligible business mentioned in section 80IB(10) of the Act. Now further going through the section 80IA(7) of the Act we find that the deduction for profits and gains arrived from such eligible business shall not be admissible unless the account of the undertaking for the previous year relevant to assessment year for which the deduction is claimed have been audited by Accountant as defined in the Explanation below subsec.( 2) of section 388 of the Act and the assessee furnishes along with his return of income, the report of such audit in the prescribed form and duly signed and verified by such Accountant. The relevant prescribed form is form no.10CCB which is provided in Rule 18BBB of IT Rules which has been reproduced above. From going through the records carefully we find that report in form no.10CCB which was mandatorily required has not been furnished along with the return of income and this is further supported by the report of auditors in form no.3CD relating to audit report required u/s 44AB wherein the auditor has made a remark that “as advised to us by assessee claim u/s 80IB(10) is available and we have been disclosing the same as a reply to point 26 of the form 3CD. The assessee has requested us to continue with the same disclosure till to the date of finalization & disposal of appeal of the Income-tax Department with ITAT, Ahmedabad. Therefore we have continued to show that claim is admissible, but the same should be viewed in the light of above. As assessee has defaulted in submitting the auditor’s report mandatorily required to be furnished along with the return of income we are of the view that assessee cannot claim deduction u/s 80IB(10) of the Act and, therefore, we find no reason to interfere with the order of ld. CIT(A). - Decided against assessee.
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