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2020 (8) TMI 752 - AT - Income TaxDisallowance u/s 10A - return of income is not filed within the due date prescribed u/s 139(1) of the Act for filing return of income - HELD THAT:- As per the proviso below sec.10(1A) the deduction u/s 10A is not allowable, if the return of income is not filed within the due date prescribed u/s 139(1) for filing return of income. We have noticed earlier that the due date for filing return of income for the year under consideration was 30-09-2008 and it came to be filed on 01- 10-2008 due to technical glitches in computer system. Hence the assessee has filed an application before CBDT requesting it to condone the delay of 1 day in filing return of income. Admittedly, the purpose of making the said application was to request the CBDT to authorize the A.O. to admit the claim for deduction u/s 10A since the return of income through which the claim was made was filed beyond the date prescribed for claiming the deduction. CBDT has expressly stated that the condonation of delay in filing the return will not amount to acceptance of claims made in the return of income and hence the said condonation will not absolve the assessee from complying with the condition prescribed under the proviso to section 10A(1A) of the Act, which mandates furnishing of return of income on or before the due date specified u/s 139(1) of the Act. We are of the view that the tax authorities have misunderstood the objective of sec.119(2)(b) of the Act as well as the order passed by CBDT. In our view, the order passed by the CBDT only states that the same should not be construed as automatic acceptance of claim for deduction u/s 10A of the Act. Hence, the order specifically makes it clear that the A.O. will be authorized to deal with the claims made in the return of income on merits. So, in our view, the CBDT has in fact relaxed the condition prescribed in the proviso to section 10A(1A) (referred above) by condoning the delay in filing return of income. Assessee shall be deemed to have been complied with the condition prescribed in the proviso to section 10(1A) of the Act with regard to the filing of return of income. Restore the matter to the file of the A.O. for examining the claim made by the assessee u/s 10A - Appeal filed by the assessee is allowed.
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