2023 (9) TMI 679 - ITAT DELHI

Revision u/s 263 - as per CIT AO had considered the assessee eligible for claiming deduction u/s 10AA of the Act in spite of the fact that mandatory Auditor’s report in prescribed Form 56 was not filed before the due date of filing the return - HELD THAT:- As during assessment proceedings in response to notices issued by the AO assessee had submitted justification of the deduction u/s 10AA of the Act. Thus, as such, the issue stood examined by the learned AO and also before the assessment order was passed, the Auditor’s report in form 56 stood filed.

The judgments relied by the learned AR were certainly then holding the field as in the case of Pr. CIT v. Wipro Ltd. [2022 (7) TMI 560 - SUPREME COURT] held that filing of declaration under Section 10B is mandatory. Assessing Officer exercises quasi judicial powers so if in exercise of such powers an assessing officer accepts delayed compliances, which as per prevailing law he considered only directory in nature, that cannot make the assessment order erroneous, so as to justify the exercise of powers u/s 263 by the learned PCIT. The grounds raised in the appeals are allowed.