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2020 (3) TMI 337

..... ar of the project and project is close to completion (around 80%) - the assessee did not offer any income on account of this project in the earlier assessment years and never claimed the deduction till this year. The assessee followed the “project completion method” till last year - CIT-A allowed the claim - HELD THAT:- CIT(A) granted relief to the assessee appreciating the assessee‟s explanation relating to some glitches in the software. The said para of CIT(A)‟s order does not have reasons for accepting patent discrepancies appeared in the Profit and Loss Accounts and statement of accounts, dates in the audit reports, etc. No reason is given for the anti-dated Form No.10CCB. Further, no details are given for justifying the differences in the sales figure, no reasons are given for accepting change in method of accounting. In our opinion, such an order of CIT(A) is not in tune with the provisions of section 250(6) of the Act and therefore, should be unacceptable. Therefore, we are of the opinion the matter should be remanded to the file of CIT(A) for re-adjudication of the issues and direct the CIT(A) to pass a speaking order attending to the aforesaid discr .....

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..... there was no discussion in the order of the First Appellate Authority; no discussion on the reasons for the change in the method of accounting; there was no discussion on the reasons for various ones related issues. Referring to revised return of income filed by the assessee during the assessment proceedings on 31.03.2013 i.e. before completion of assessment, ld. DR submitted that this is a return filed by changing the method of accounting from completion method to percentage completion method and also claiming 80IB(10) deduction. Referring to the correctness of the claim of deduction u/s. 80IB(10), ld. DR mentioned that the assessee got his accounts audited once again for filing this revised return and the figures appearing in the Balance Sheet and the statement of accounts do not tally with that of the audited accounts, based on which regular return was filed u/s 139(1) of the Act. Referring to Form No.10CCB which is filed in support of the claim of deduction u/s 80IB(10) of the Act in the revised return of income, ld. DR submitted this is full of discrepancies in figures as well as blanks or filled in manually by the assessee. Referring to the dates and figures appearing in For .....

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..... see did not raise claim for deduction under section 139(1), same could not be allowed keeping in view of provisions of section 80AC - He thus passed an order under section 143(3), read with section 147 withdrawing deduction allowed to assessee - Whether provisions of section 80AC do not lay down condition that deduction under section 80-IC must be claimed in return of income filed under section 139(1) - Held, yes - Whether even otherwise since assessee filed revised return under section 139(5) within stipulated time along with audit report and certificate in Form No.10CCB, there was sufficient compliance for claiming deduction under section 80-IC read with section 80AC and, thus, assessee's claim for deduction was to be allowed - Held, yes [Para 6] [In favour of assessee] Monarch Innovative Technologies (P.) Ltd v ACIT [2018] 91 taxmann.com 267 (Mumbai - Trib.) B. Claiming deduction under section 80-IB, only condition is that original return should be filed in time - Said claim need not necessarily be made in original return and it can be made subsequent thereto also, even before appellate authority. Parmeshwar Cold Storage (P.) Ltd. v. Assistant Commissioner of Income-tax [201 .....

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..... n section 80A(5) as there was no failure on part of assessee to claim such deduction. DIC Fine Chemicals (P.) Ltd. v. DCIT, Circle- 11(1), [2019] 177 ITD 672 (Kolkata -Trib.) E. In the Explanatory Notes, the Board had clarified that the provisions of section 80A(5) were enacted to prevent the misuse of multiple deductions claimed in respect of the same profits and therefore necessary safeguards was put in place in section 80A. It was not intended to deny legitimate deduction to which the assessee is otherwise legally entitled to. CIRCULAR NO. 5/2010/(F.NO.142/13/2010-SO(TPL)], DATED 3-6-2010 F. Section 139 of the Income-tax Act, 1961 - Return of income - Revised return - Assessment year 2005-06 - For relevant year, assessee filed return under section 139(1) declaring certain taxable income - Subsequently, assessee filed revised return under section 139(5) raising a claim for carry forward of speculation loss - Assessing Officer disallowed said claim on ground that same was not raised in original return but in revised return - Tribunal took a view that once a return was revised under section 139(5) within time prescribed, original return filed under section 139(1) would not survive .....

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..... /295 CTR 561 /152 DTR 89 (Bom.) (HC) 5. We heard both the sides on the limited issue of claim of deduction u/s 80IB(10) of the Act and also perused the order of CIT(A) on this issue. In this regard, we perused and considered relevant para 9.3 at page 18 of the CIT(A)‟s order. The said para in the order of CIT(A) completely avoids the core issues / discrepancies narrated above. The CIT(A) granted relief to the assessee appreciating the assessee‟s explanation relating to some glitches in the software. The said para of CIT(A)‟s order does not have reasons for accepting patent discrepancies appeared in the Profit and Loss Accounts and statement of accounts, dates in the audit reports, etc. No reason is given for the anti-dated Form No.10CCB. Further, no details are given for justifying the differences in the sales figure, no reasons are given for accepting change in method of accounting. In our opinion, such an order of CIT(A) is not in tune with the provisions of section 250(6) of the Act and therefore, should be unacceptable. Therefore, we are of the opinion the matter should be remanded to the file of CIT(A) for re-adjudication of the issues and direct the CIT(A) t .....

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