9911796707
|
Home
Issues:
1. Claim for deduction under section 80HH of the Income-tax Act for the assessment year 1982-83. 2. Application of section 139(9) of the Income-tax Act, 1961 regarding time to cure defects in the return of income. Analysis: 1. The petitioner, engaged in the manufacture and sale of plywood, veneers, etc., started an industrial undertaking in 1974 and was allowed a deduction under section 80HH for the assessment year 1977-78. However, the Income-tax Officer rejected the claim for the assessment year 1982-83 due to non-compliance with audit report submission requirements. The petitioner's objection was filed after the assessment order, leading to dismissal of revision by the Commissioner of Income-tax. The petitioner contended that the order was void as 15 days to rectify the defect under section 139(9) were not granted. 2. The petitioner argued that the Income-tax Officer erred in not allowing 15 days to cure the defect as per section 139(9) of the Income-tax Act. The respondents contended that the provision did not apply in this case, stating that the time for rectification should be granted only from the date of the first assessment. The court considered the proviso under section 139(9), which allows rectification before assessment to validate the return. Referring to the Bombay High Court's decision, it was emphasized that the time for rectification is available from before the first assessment, not after remand for fresh assessment. The Supreme Court's affirmation of this principle was cited in a related case. The court concluded that the assessment was not valid until after remand, thus the petitioner was denied the right to rectify the defect within the statutory period. Consequently, the impugned orders were quashed, and the matter was remitted for a fresh assessment. In summary, the High Court allowed the writ petition, quashing the impugned orders and remitting the matter for a fresh assessment, emphasizing the importance of granting the petitioner the opportunity to rectify defects within the statutory period as provided under section 139(9) of the Income-tax Act.
|
