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TMI Blog2020 (5) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 80IA of the Act. Therefore on merits of the claim for deduction u/s.80IA of the Act, the Assessee has no case. We are of the view that in the present case, the order of the AO is erroneous and prejudicial to the interest of revenue for the failure on the part of the AO to make proper enquiries on the claim of deduction as claimed by the Assessee u/s 80IA of the Act and therefore, as laid down in the case of M/s GEE VEE Enterprises Vs Addl.CIT Others [ 1974 (10) TMI 29 - DELHI HIGH COURT] the jurisdiction u/s 263 of the Act was rightly invoked by the Pr.CIT. We therefore, find no merit in this appeal filed by the assessee and accordingly, we dismiss the same. - Decided against assessee. - ITA No.932/Bang/2016 - - - Dated:- 26-2-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond the time allowed u/s 39(1) of the Act for assessment year 2011-12, the AO ought not to have allowed deduction u/s 80IA of the Act. According to Pr.CIT, the AO while passing the aforesaid order of assessment failed to apply his mind and make proper verification. Accordingly he issued a show cause notice u/s 263 of the Act dated 27-01-2016. 4. In reply to the above said show cause notice, the Assessee by a letter dated 30-01-2016 submitted that the proceedings u/s 263 of the Act will not be maintainable under the facts and circumstances of the case and that provisions of sec.80AC of the Act referred to in the show cause notice were only directory and not mandatory and therefore failure to file return of income on or before the due da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P)Ltd. Vs CIT, the assessee did not file any return of income u/s 139(1) of the IT Act. A survey was conducted on assessee s premises and consequently assessee s case was reopened u/s 147 and thereafter in response to notice u/s 148 of the IT Act the assessee has filed its return of income. Hence, in case of Vanshree Builders Developers (P) Ltd., the Assessing Officer has allowed the claim of the assessee as he was well aware of the fact that the assessee has filed a belated return. Hence, the order passed u/s 263 has been quashed by the Hon ble ITAT. However, in the present case, the AO was not at all aware of the fact as the case was selected under regular scrutiny proceedings u/s 43(3) and the AO did not raise any query why the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has filed the present appeal before the Tribunal. 7. We have heard the rival submissions. It is not disputed before us that in view of the decision of the Special Bench, Rajkot in the case of M/s Saffire Garments vs ITO reported in (2013) 151 TTJ (Rajkot) (SB) 114, wherein the provisions of section 80AC were held to be mandatory and that an assessee who does not file its return of income on or before the due date prescribed u/s 139(1) of the Act will not be entitled to claim deduction u/s 80IA of the Act. Therefore on merits of the claim for deduction u/s.80IA of the Act, the Assessee has no case. 8. The ld.counsel for the assessee again placed reliance on the decision of the ITAT, Bangalore Bench in the case of M/s Vanshree Builders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Special Bench. Therefore, the aforesaid decision cited by the learned counsel for the assessee will also not help the plea of the assessee. 9. We are of the view that in the present case, the order of the AO is erroneous and prejudicial to the interest of revenue for the failure on the part of the AO to make proper enquiries on the claim of deduction as claimed by the Assessee u/s 80IA of the Act and therefore, as laid down in the case of M/s GEE VEE Enterprises Vs Addl.CIT Others (supra) the jurisdiction u/s 263 of the Act was rightly invoked by the Pr.CIT. We therefore, find no merit in this appeal filed by the assessee and accordingly, we dismiss the same. 10. In the result, the appeal filed by the assessee is di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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