2008 (12) TMI 13 - HC - Income Tax

Interpretation with regard to the provisions of Section 10B (5) which is virtually identical to the provisions of Section 80IA (7) as also 80HHB (3) (ia). It is also identical to the erstwhile provisions of Section 80J(6A) - held that as long as the audit report is filed before the framing of the assessment, the provisions of Section 80IA (7) would be complied with inasmuch as the same are directory and not mandatory - No substantial question of law arises revenue s appeal dismissed

Summary

The High Delhi Court judgment in 2008 clarified that Section 10B(5) of the Income Tax Act is directory, not mandatory. The court upheld that filing the audit report before assessment suffices for compliance with the provision. The decision in a similar case (CIT v. Contimeters Electricals Private Limited) was referenced. The appeal was dismissed as no substantial question of law arose.