2011 (5) TMI 935 - AT - Income Tax

Summary

Issues involved: Appeal against order disallowing claim u/s 80IB and addition u/s 68 of the Income Tax Act for assessment year 2005-06.

Disallowance u/s 80IB:
The assessee, engaged in manufacturing steel ingots, claimed deduction u/s 80IB but failed to file necessary Form 10CCB along with the return of income. The Assessing Officer disallowed the claim citing non-furnishing of the required audit report. However, the ld. CIT(A) held that the audit report need not be furnished at the time of filing return and allowed the claim, noting that the purpose of the provision is to verify accounting authenticity. The Tribunal dismissed the Revenue's appeal, citing oversight in attaching the audit report and referring to a decision of the Calcutta High Court supporting the assessee's position.

Addition u/s 68:
The assessee received share application money and premium from corporate entities, which the Assessing Officer treated as unexplained cash credit u/s 68. The assessee provided necessary documents during assessment proceedings and relied on a judgment of the Madras High Court, which held that even if the subscribers were not genuine, the share application money could not be treated as undisclosed income. The Tribunal upheld the ld. CIT(A)'s order, finding no fault in the treatment of the share application money and premium.

The appeal of the Revenue was dismissed, and the order was pronounced on 19.5.2011.