9911796707
TMI Blog2020 (5) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment year 2011-12 on 23-11-2011 declaring a taxable income of Rs. 1,97,430/-. The Assessee claimed deduction u/s 80IA of the Act of a sum of Rs. 17,34,048/. The claim for deduction u/s.80IA of the Act was accepted by the AO and an order of assessment u/s 143(3) of the Act was passed on 29-01-2014 accepting the income declared in the return of income. 3. The Pr.CIT in exercise of powers u/s 263 of the Act, was of the view that the aforesaid order of AO was erroneous and prejudicial to the interest of revenue. According to Pr.CIT, as per the provisions of sec.80AC of the Act, if the assessee does not file the return of income within the time prescribed u/s 139(1) of the Act, then such Assessee is not entitled to any deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion that failure to make enquiry on an issue which calls for an enquiry renders the order of AO erroneous and prejudicial to the interest of revenue. 6. One of the contention of the Assessee before the Pr.CIT was that the Hon'ble ITAT in the case of M/s Vanshree Builders & Developers (P)Ltd., Vs CIT in ITA No.536(B)/2011 for assessment year 2007-08 vide order dated 12-03-2013 was pleaded to hold, on identical facts of the case as that of the assessee in the present appeal, that the proceedings u/s 263 of the Act were not appropriate. The Pr.CIT in the impugned order distinguished the aforesaid decision as follows; " Further, the Assessee has relied upon the judgment of Hon'ble ITAT in case of Vanshree Builders & Developers (P) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) 29 ITR 529, and Gopi Ram Lila Vs CIT(Raj.) 225 ITR 320 has held that to claim any exemption/deduction, duty of assessee to substantiate it with records and evidences. Moreover, the AO has no discretionary power to condone the delay in filing the return of income so as to allow deduction u/s 80IA r.w.80AC of the Act. The fact of the matter is that the return of income was filed belatedly and as per the provisions of section 80AC, the return should have been filed as per the provisions of section 139(1) of the IT Act to claim deduction u/s 80IA and the assessee has not complied with this precondition and without condoning the delay AO could not have allowed the deduction and he has no power to condone the delay in filing the return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, proceedings u/s 263 of the Act could not have been initiated. However, in the present case, we find that the AO made no enquiries whatsoever on the question of applicability of Sec.80AC of the Act (Para 5.7.3 of the Tribunal's order). We are therefore, of the view that the decision on which the learned counsel for the assessee had placed reliance is not of any use to the plea made by the assessee. The ld. counsel also placed reliance on the decision of the ITAT, Pune Bench in the case of M/s Sharp Designers & Engineers India Pvt.Ltd.,Vs ACIT, in ITA No.2263(PUN)/2014 for assessment year 2010-11 vide order dated 29-01-2018 wherein, the provisions of Sec.80AC were held to be directory and not mandatory. The aforesaid decision is cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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