TMI Blog2017 (7) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld CIT(A). - Decided against revenue - ITA No.6477/Del/2013 - - - Dated:- 28-3-2017 - SHRI N.K.SAINI, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Assessee : Sh. PK Mishra, Adv For The Revenue : Sh. UC Dubey, Sr. DR ORDER PER N.K.SAINI, A. M. 1. This is an appeal by the department against the order dated 19.09.2013 of the ld CIT(A)-XXVI, New Delhi for the Assessment Year 2007-08. The only effective ground raised in this appeal reads as under:- 1. The ld CIT(A) has erred in allowing deduction of ₹ 29965494/- u/s 80IC of the IT Act, 1961 without appreciating the fact that the assessee has not claimed deduction u/s 80IC in his return of income. 2. The facts of the case in brief are that the assessee filed e-return of income on 15/11/2007 declaring an income of ₹ 31290590/- after claiming deductions u/s 80IB and 80IC of the Income Tax Act, 1961 (herein after the Act ). The said deductions were not allowed while processing the return by the CPC, Bangalore for the reason that it was a belated return. Subsequently, the assessee filed application u/s 154 of the Act seeking a claim of deduction amounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn by the CPC Bangalore. The due date for filing the return of income for A.Y. 2007-08 was 31.10.2007 which was subsequently extended to 15.11.2007 vide order no. F.No. 225/147/2007~lTA-ll(Pt.) dated 31st October, 2007 issued by CBDT u/s 119 of the Act (APB - 32). The appellant filed its return of income on 15.11.2007 i.e within the extended due date (as notified) and therefore the return of income was not late at all and was filed within time and the appellant was entitled to deductions under Chapter VI-A duly claimed in the return of income which was a valid legal claim in accordance with the provisions of the Act. GROUND NO. 5: In the order passed u/s 154 of the Act, the ld. Assessing Officer has observed that as under:- i) On perusal of Schedule VIA of the ITR, it is seen that the assessee as well as, as per system, total deduction of ₹ 4,28,609/- has only been claimed under Chapter VIA. Deduction u/s 80IC is not available unless it is claimed in the return of income. The contention of the Id. AO is factually incorrect in view of the following submissions: In the return of income filed electronically the appellant claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the eyes of law in view of the following facts:- The return filed electronically is a paperless return and as per the provisions of section 139D of the Act there is no requirement to file audited balance sheet, profit loss account and other annexures such as audit report u/s 44AB or other sections under which claim of deductions have been made by the assessee either with the return of income or separately. Section 139D provides as under: In accordance with the above provisions the Board has issued Circular No. 5/2007 a copy of which has been placed in paper book (APB- 33 to 35). Clauses (i) (ii) of Para 6 of the Circular provide as under: .. .. Therefore as per the provisions of the Act and as clarified by CBDT in Circular No. 5/2007 dated 26.07.2007 the appellant was not required to furnish the audit report u/s 44AB in Form No. 10CCB for claim of deduction u/s 80IB 80IC with the return of income though the same were obtained within the due date of filing of return and a mention of the same was duly appearing in the Income tax return filed by the appellant (refer APB-2). The original audit reports were to be filed only i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . F.No. 225/147/2007-ITA-ll(Pt) dated 31.10.2007 of the Director, ITA-II, CBDT; therefore, the appellant's ROI filed on 15.11.2007 cannot be said belated as it is within the extended due date and thus the claim of deductions under Chapter VI-A in the ROI cannot be disallowed on the premise that the ROI is belated. On perusal of the downloaded e-return for the relevant AY filed before me during the appellate proceedings, it is evident that the appellant has claimed deductions both u/s 80IB and 80IC, therefore, the AO's finding that the appellant has not claimed deduction u/s 80IC in the ROI is held erroneous. 5.3 Earlier before the introduction of annexure less forms the audit reports were required to be submitted with the AO on or before the due date of filing of the ROI, otherwise it attracted penal provisions u/s 271B and denial of certain deductions under chapter VIA as the case may be. But after the introduction of annexure less forms i.e. ITR4, ITR5, ITR6 etc., the Tax Audit Reports are not required to be submitted along with the ROI nor these are to be submitted separately any time before or after the due date. However, one should get the Tax Audit Report from h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the appellant's claim of deductions u/s 80IB and 80IC in the ROI cannot be disallowed on the premises that the ROI was belated and audit reports were not filed. I have also considered the judgement of the Hon'ble Delhi High Court in the case of Court on its own motion v/s CIT (order dated 14.03.2013) and CBDT Instruction No. 03/2013 dated 05.07.2013. Keeping in view the facts in entirety, the above findings and submission of the appellant, the AO is directed to allow the claim of deductions u/s 80IB and 80IC in the ROI of the relevant AY. Consequential relief shall be given by the AO. However, the AO is free to take any adverse decisions in respect of deductions u/s 80IB and 80IC in case of the appellant in scrutiny without prejudice to above findings. 5. Now the department is in appeal. 6. The ld DR strongly supported the order passed by the AO and reiterated the observation made in the assessment order dated 24.09.2012. 7. In his rival submission the ld counsel for the assessee strongly supported the impugned order passed by the ld CIT(A) and further submitted that the assessee made the claim for deduction u/s 80IB and 80IC of the Act in the computation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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