9911796707
TMI Blog2017 (6) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... remises of the assessee on 20-10-2010. The assessee has not filed its return of income for the A.Y. 2011-12 on or before the due date u/s 139(1). The A.O. issued notice u/s 148 on 1-11-2012. In response to notice, the assessee has filed return of income on 1-3-2012 declaring total income of NIL after claiming exemption u/s 80IB of the Income Tax Act, 1961. The case was selected for scrutiny and accordingly, notice u/s 143(2) of the Act was issued. In response to notice, the authorized representative appeared and produced the details as called for. The assessment was completed u/s 143(3), r.w.s. 147 on 22-3-2013 determining the total income of Rs. 53,19,160/ by disallowing the claim of deduction u/s 80IB(11C) amounting to Rs. 29,46,986/-, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is mandatory for claiming deduction u/s 80IB of the Act. 4. The Ld. A.R for the assessee submitted that the Ld. CIT(A) was not justified in holding that the assessee is not eligible for deduction u/s 80IB, merely for non filing of return us/ 139(1) of the Act. The A.R. further submitted that the assessee has fulfilled all other conditions prescribed in the section, except filing return on or before the due date which is a procedural laps for which deduction cannot be denied. Section 80IB(11C) is incentive provision, which provides deduction for profits derived from eligible projects for encouragement of setting up Hospitals in certain areas which has to be interpreted in a manner so as to advance the economic activity of the reason and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is filed u/s 139(4) of the Act. No doubt, the provisions of section 80IB, r.w.s. 80AC mandates filing of return on or before the due date prescribed u/s 139(1), for claiming deduction u/s 80IB of the Act. Therefore, to claim deduction u/s 80IB, return of income should be filed on or before the due date referred to in section 139(1) and if such return is not filed, the assessee is not entitled for deduction u/s 80IB of the Act. 7. Section 80IB(11C) is a incentive provision, which provides deduction for profits and gains derived from eligible projects for setting up Hospitals in certain areas. No doubt, any incentive or beneficial provisions has to be interpreted in a manner so as to advance the economic activity of the region and not to den ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and perused the material on record. In this case admittedly, the assessee filed the return of income on 23.12.2008. The due date for filing the return of income u/s. 139(1) of the Act for the assessment year under consideration in the case of the assessee is 31.10.2008. As such the return filed by the assessee is belated. In this the assessee claimed deduction u/s. 801C of the Act which was disallowed by the Assessing Officer as the return of the assessee was not filed within the time as prescribed u/s. 139(1) of the Act. The assessee has given reasons for delay in filing the return of income that the assessee was preparing its accounts through computer and the computer got corrupted due to viruses and in spite of continuous efforts by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Form 1OCCB during the course of re¬assessment proceedings. The issue that arises for consideration is whether the Assessing Officer was justified in disallowing the assessee's claim for deduction under S. 801B on the ground that the audit report in Form 1 OCCB was not filed along with the return of income; or whether the CIT(A) was correct in proceeding on the basis of Form 1OCCB filed during the course of re-assessment proceedings and directing the Assessing Officer to allow the claim of the assessee for deduction under S. 801B of the Act. It is settled position of law, as consistently held by various Benches of this Tribunal and as held in various decisions referred to by the CIT(A) in the impugned order, that though filing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no justification to interfere with the order of the CIT(A). We accordingly uphold the same and reject the grounds of the Revenue in this appeal." 14. In our opinion, in view of the above discussion, the claim of the assessee cannot be denied on technicalities when the assessee is legally otherwise entitled for deduction. As suchwe are inclined to dismiss the appeal filed by the Revenue as devoid of merit." 9. In this case, there was survey u/s 133A of the Act on 22.10.2010. During the course of survey, certain materials were impounded to quantify the unaccounted turnover. The return of income for the relevant assessment year was due on 31.7.2011. The assessee has filed return on 1.3.2012. The assessee stated that the delay in filing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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