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TMI Blog2016 (12) TMI 1790X X X X Extracts X X X X X X X X Extracts X X X X ..... th the appeals by single common order. First we would like to reproduce the grounds of appeal in ITA No.342/Kol/2013 for A.Y. 2008-09.:- "The following grounds of appeal are approved for filing appeal to ITAT, Kolkata against the order dated 29/11/2012 of the Commissioner of Income TAX (Appeals), Central-III, Kolkata in Appeal No.93 & 94/CC-XXIII/CIT(A) CIII/10-11/Kol, in the case of M/s Singhal Enterprises Pvt. Ltd. for the Assessment Year 2008-2009:- 1.That on the fact and circumstances of the case, Ld. CIT(A) erred in allowing claim of deduction u/s. 80I & 80IB of the IT Act, by accepting reasons of the appellant for submitting return beyond due date, without giving opportunity to the assessing officer to examine the same in violation of the provisions of Rule 46A(3) of the IT Rules. 2. That on the fact and circumstances of the case, Ld. CIT(A) erred in allowing claim of deduction u/s. 80IA & 80IB of the IT Act, without properly verifying it or getting it verified of the reasons of filing return of income belatedly. 2.1 That on the fact and circumstances of the case, Ld. CIT(A) erred in allowing claim of deduction u/s. 80IA & 80IB of the IT Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Inter-connected sole issue raised by Revenue in all the ground of appeal is that Ld. CIT(A) erred in allowing deduction u/s 80IA and 80IB of the Act in contravention of the provision of Sec. 80IC of the Act. The necessary facts of the case are that assessee in the present case is a Private Limited Company and engaged in the manufacturing business of sponge iron. The assessee, for the year under consideration filed its return of income declaring at NIL. Thereafter the case was selected for scrutiny and notice u/s. 143(2) was issued upon assessee. The assessee was completed u/s 143(3) of the Act after making certain disallowance / addition to the total income of assessee at Rs. 27,23,38,095/-. 5. The assessee, for the year under consideration has claimed deduction us. 80IA for an amount of Rs. 7,66,56,588/- and u/s. 80IB of the Act for Rs. 6,49,65,494/- respectively. The assessee for the year under consideration filed its return of income on 31.03.2010 i.e. after due date of filing IT return as specified u/s. 139(1) of the Act. Accordingly, AO called upon assessee to justify why the deduction claimed under 80IA & 80IB should not be disallowed in pursuance to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest u/s. 234A, 234B and 234C of the Act has given finding that the appellant's claim of deduction u/s. 80IA & 80IB of the Act fulfills all the requirements of those sections except filing of return within the due date. Since, the Learned Director General has already given the finding of the appellant having fulfilled all the requirements of sections 80I and 80IB except the requirement of filing of return within due date, there is no reason for me to re-examine the factual aspect appellant's claim of deduction under those sections. The appellant has explained the circumstances under which the returns for the assessment years under appeal were filed beyond the due date prescribed u/s. 139(1). Although a family settlement had already been arrived at by the litigants vide Memoranda of Understanding dated 24.04.07 but from the petition dated 05.10.10 before the Hon'ble Calcutta High Court, it is clear that the non-co-operation by Sri Radha Krishan Agarwal prevented the appellant from getting the accounts audited and filing return of income within the due date. From the facts observed above, it is quite clear that the delay in filing of returns for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 80AC of the Act squarely apply on the facts of the case in hand, section 80AC reads as under:- "80AC. Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction is admissible under section 80IA or section 80-IAB or section 80-IB or section 80-IC [or section 80-ID or section 80- IE], no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub- section (1) of section 139]." 9.1 The Special Bench of the Tribunal at Rajkot had the occasion to consider the following facts in the case of Saffire Garments ITA No. 397/Rjt/2009, 20 ITR (T) 623 vide order dated 30th Nov. 2012 :- * The assessee, a partnership firm, filed its return of income claiming deduction under section 10A in respect of its profit derived from the export of articles produced in SEZ. A.Y. 2008-09 * The Assessing Officer, however, noted that the assessee had filed its return on 31.01.2007 whereas the extended due date for filing return of income for the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in section 234A also as per which, the assessee is liable to pay interest on the tax payable by him after reducing advance tax and TDS/TCS if any paid by him apart from some other reductions. Such interest is payable from the date immediately following the due date for filing the return of income and is payable up to the date on which such return of income was furnished by the assessee and if the assessee has not furnished any return of income then the interest is payable till the date of completion of the assessment under section 144. It is held that above is also one of the consequences of not filing return of income by the assessee within the due date. [Para 11] A similar issue was also considered by the Co-ordinate Bench of Chandigarh in the case of Lakshmi Energy & Foods Ltd. 250 & 251/Chd/2013, the relevant order of the Co-ordinate Bench read as under:- "Sec 80IB r.w.s. 80AC of the Income-tax Act, 1961 deduction - profits and gains from industrial undertaking other than infrastructure development undertakings -Assessment year 2006-07 and 2007-08 - where an assessee wants to avail deduction u/s 80IB, he has to necessarily furnish his return of income containing such cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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