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TMI Blog2022 (7) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... igibility of deduction u/s 80IB of the Act?" 2. "Whether on points of facts and on point of law, the Ld. CIT(A) was justified in relying on the decision of the jurisdictional Hon'ble ITAT in the case of assessee itself who erred in giving a finding which is contrary to evidence on record as per the certificate issued by the General Manager, Regional Industries Centre, Sambalpur on 18.02.2013, stating that the assessee has operated a Micro Scale Industry not a Small Scale Industry before the end of previous year, as the status of small scale industry is mandatory for claiming of deduction as per provisions of section 80IB(14)(g) of the Act?" 3. "Whether on points of facts and on point of law, the ld. CIT(A) was justified in allowing relief to the assessee, without verifying the basic finding of the case that the assessee is not a small scale Industry and besides it is also not situated in industrially backward state specified in the Eighth Schedule of the Act.?" 4. "Whether on points of facts and on point of law, the Hon'ble ITAT, being a first fact finding authority was justified in giving relief to the assessee without verifying the eligibility criteria of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule of the Act, thereby rendering the decision which is perverse?" 11. The order of Hon'ble ITAT is erroneous both in law and on facts". 12. "Any other ground that may be adduced at the time of hearing." 2. Succinctly stated, the assessee firm which is engaged in the business of manufacturing of bidis without aid of power had efiled its original return of income for AY 2008-09 on 29.09.2008, declaring an income of Rs. 4,48,16,560/-(after claim of deduction u/s 80IB of Rs. 15,20,513/-). Original assessment was thereafter framed by the AO vide his order passed u/s 143(3) of the Act, dated 14.12.2010 determining the income of the assessee at Rs.4,52,28,800/-. 3. Thereafter, the AO taking cognizance of the fact that though the assessee had claimed a deduction of Rs. 15,20,513/- u/s 80IB of the Act, but in support of its said claim of deduction had neither filed the audit report in Form No. 10CCB nor a certificate from the competent authority that it was a Small Industrial Undertaking (SSI), reopened its case u/s 147 of the Act. 4. During the course of the reassessment proceedings though the assessee filed a copy of the 'audit report' in Form No. 10CCB, but failed to pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction u/s 80IB is allowable. On these facts appeal is allowed." 6. The Revenue being aggrieved with the order of the CIT (Appeals) has carried the matter in appeal before us. 7. We have heard the Ld. Authorised Representatives of both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the ld. AR to drive home his contentions. 8. Controversy involved in the present appeal lies in a narrow compass, viz. (i). that as to whether or not the CIT(Appeals) is justified in concluding that as the filing of an 'audit report' in Form 10CCB is procedural and directory in nature, therefore, pursuant to filing of the same by the assessee i.e, both in the course of the reassessment proceedings and also in the course of the proceedings before him, no adverse inference qua its entitlement for deduction u/s 80IB was liable to be drawn; and (ii) that as to whether the failure on the part of the assessee to file a certificate from the competent authority evidencing that it was registered as a "SSI" would divest its entitlement towards deduction u/s 80IB of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be drawn on the said count. 10. Adverting to the observation of the AO that as the assessee firm had failed to obtain and place on record a certificate from a competent authority that it is a SSI, therefore, for the said reason it was not entitled for deduction u/s 80IB of the Act, we are afraid that the same does not find favour with us. On a perusal of Clause (g) of sub-section (14) of Sec. 80IB, we find that the same contemplates the definition of a "small-scale industrial undertaking" and reads as under : "(g). "small scale industrial undertaking" means an industrial undertaking which is, as on the last day of the previous year, regarded as a small-scale industrial undertaking under section 11B of the Industries (Developmemt and Regulation) Act, 1951 (65 of 1951)." As is discernible from Clause (g) of sub-section (14) of Sec. 80IB, the same only contemplates the definition of a SSI i.e an industrial undertaking which as on the last day of the previous year is regarded as a small-scale industrial undertaking under Sec. 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951). As such, what is required is that the stipulations for being regarded as a SSI un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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