TMI Blog2019 (10) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been raised in this appeal: 1. That the learned CIT (A) has erred in rejecting the claim of the appellant u/s 80IC ignoring the fact that the claim stood allowed by her predecessor in the immediately preceding year. 2. That the learned CIT(A) has erred in disallowing the claim u/s 80IC on the ground that the return was not filed u/s 139(1) ignoring the provisions of law and the justification filed by the appellant for late filing of return. 3. That in any case the disallowance of claim is against the law and the facts of the case. 4. That the Appellant craves leave for permission to add, amend or alter any ground of appeal at the time of hearing. 3. From the aforesaid grounds, it is noticed that the only grievance of the Assessee relates to the rejection of claim under section 80IC of the Income Tax Act, 1961 (hereinafter referred to as Act ), for the reason that the return of income was filed late and not under section 139(1) Act. 4. Facts of the case in brief are that the assessee e-filed the return of income on 26/03/2011 showing NIL income after claiming deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the present case wherein the assessee admittedly did not file its return within the due date specified under subsection (1) of Section 139 of the Act and filed it only in the extended period and though within time but in the extended period as set out in sub section (4) of Section 139 of the Act. The consistent claim of the assessee which has not been disputed by the tax authorities or by the Id. CIT-DR is that the return of the assessee was filed well within the extended due date u/s 139(4) i.e. on 29.09.2013. 6.4 We have considered the relevant findings in the assessment order and the impugned order and we find that the relevant documents in support of its claim of deduction were available before the tax authorities well within time namely Book Audit Report in Form No. 29B and Tax Audit Report in Form No. 3CA/3D on 29.09.2013, Audit Report u/s 80IC along with Balance Sheet etc. Consequently, the occasion to consider the possibility and the opportunity to interpolate and fudge up the claim was admittedly not available to the assessee. We note that the respective corresponding figures qua the claim as per the Reports and Balance Sheets remain the same. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Once it has been held that Section 80AC is a machinery provision, then the issue is to be considered in the light of the facts available. The legal position that the relevant provision is a machinery provision, applying the principles that being directory in nature enables the authorities to consider the reasons, consistently on record for late filing of the return. A perusal of the record shows that the affidavit of Shri Jagbir Singh S/o Shri Om Pal, Managing Director of the assessee company is on record. Perusal of the same shows that it has been explained that on account of collusion of the tax consultant i.e. Chartered Accountant Shri A.S.Malhotra in regard to allotment of shares in another company i.e. Saitec Medical Pvt. Ltd. wherein the assessee company had a major share holding resulting in filing of suite before the Company Law Board etc. and in connivance of the Tax Consultant with Mr. Bhalotia and his son who were having minor shareholding in M/s Saitech, the routine exercise normally done by the Tax Consultant without any follow up or supervision as digital signatures had been entrusted to the tax consultant for uploading of documents etc. in the Income Tax Portal, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and tax consultant of Wonder Products, Nahan Road, Moginand, Kal Amb, Distt. Nahan; a firm of these two persons/ their family members. The suspicion is on account of the fact that return of Income for the year under consideration was filed late when balance sheet and audit report was filed in time and also he has guided the other directors for filing a suit against the company. 5. That when we received the order of the DC!T in our case for the A.Y. 2013- 14 on 16.01.2016; we consulted another CA who told us the intricacies of the order and thereafter we confronted the. same with our Tax Consultant CA. A.S. Malhotra; who did not give any satisfactory reply for delay in filing of Income Tax return and we asked for his resignation and changed our consultants as well as Auditors of both the Companies. 'His replies confirmed our suspicions that he is in hand with glove with Mr. Bhalotia and the mischief i.e. non filing of ITR in time was carried on us at the behest of Mr. Bhalotia. 6. That we would also like to add that Bhalotias had filed the case only in July 2015 after we issued Seventy six lakh shares of Saitech Medicare Private Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed u/s 139(4). The said act is evident from a reading of the assessment order itself. We also note that the principle of law as applicable to claim of exemption u/s 54 as considered by the Hon'ble jurisdictional High Court in the case of CIT V Jagriti Aggarwal is fully applicable to the case at hand also and infact the decision of the Delhi Bench of the ITAT in the case of Hansa Dalakoti and Fiberfill Engineers (cited supra) relying upon the decision of the Apex Court in the case of Bajaj Tempo Ltd. (cited supra) and decision of the Hon'ble Delhi High Court in the case of Poddar Pigments Ltd. ( cited supra) fully supports the claim of the assessee. Mention may also be made of the order of the Hyderabad Bench of the Tribunal in the case of S.Venktiah, (cited supra) and another order of the Delhi Bench in the case of Dheer Global Industries P.Ltd. (cited supra) also support the view taken. Support may also be drawn by making reference to the order of the Chandigarh Bench of the Tribunal in the case of Rajwinder Kaur Mahal (stated supra) wherein considering the claim of deduction u/s 54 after considering the decision of the Apex Court in the case of Prakash Nath Khann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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