2008 (12) TMI 16 - HC - Income Tax

Interpretation of S. 10B (5) which is virtually identical to the provisions of Section 80IA (7) as also 80HHB (3) (ia) - Denial of claim for deduction u/s 80-IA by Commissioner (A) - 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 tribunal s order require no interference revenue s appeal dismissed

Summary

The Delhi High Court, in the case of interpretation of Section 10B (5) of the Income Tax Act, held it to be directory, not mandatory. Similar provisions under Sections 80IA (7) and 80HHB (3)(ia) were also considered as directory. The court dismissed the appeal, stating no substantial question of law arises.