TMI Blog2006 (5) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... is filed along with the return. The assessee has produced the audit report before the completion of the assessment and the officer should have allowed the claim for deduction under section 33AB(2) if it is otherwise in order. - - - - - Dated:- 31-5-2006 - Judge(s) : K. S. RADHAKRISHNAN., V. RAMKUMAR. JUDGMENT The judgment of the court was delivered by K.S. Radhakrishnan J.- The assessee is a public limited company engaged in the business of growing and cultivation of tea. For the assessment year 1994-95 the assessee claimed an amount of Rs. 30,00,000 by way of deduction under section 33AB of the Income-tax Act, 1961. The Assessing Officer disallowed the claim and added back the amount as prima facie adjustment under section 143(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perly appreciated the scope of section 33AB(2). Counsel submitted that the deduction under sub-section (1) shall not be admissible unless the return is filed along with the audit report. Counsel submitted that the Tribunal was not justified in relying upon the provisions of section 80J(6A) for interpreting section 33AB(2) and does not call for a debate for a prima facie adjustment by disallowing the claim. Before we examine the contention raised by counsel, let us extract subsection (2) of section 33AB, which reads as follows: "(2) The deduction under sub-section (1) shall not be admissible unless the accounts of such business of the assessee for the previous year relevant to the assessment year for which the deduction is claimed have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the party is otherwise entitled to. No time-limit has been prescribed in the statute for production of the audit report. True, the provision says that the audit report has to be furnished along with the return of income. The assessee in a given case could convince the authorities that due to some genuine reasons he could not produce the audit report along with the return but produced it later. There is no reason why such a request be not accepted by the authorities. Production of audit report may be a mandatory requirement for claiming deduction but non-production of the report along with the return as such cannot take away the eligible claim for deduction. We may in this connection refer to the decision of the Bombay High Court in Shivanan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to rectify the omission. We are of the view, that a plain reading of sub-section (2) of section 33AB would show that deduction is admissible only if the assessee produces the audit report. But the mere fact that he could not produce it along with the return as such would not be a reason to reject the claim if he is otherwise entitled to the same. The provision only says that deduction shall not be admissible. There is no provision in the section which says that deduction is admissible only if the audit report is filed along with the return. The assessee has produced the audit report before the completion of the assessment and the officer should have allowed the claim for deduction under section 33AB(2) if it is otherwise in order. We the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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