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TMI Blog2020 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of law prohibiting such a course, would run contrary to the object of assessment proceedings. Unless prohibited or provided contrary, all the endeavour in the assessment proceedings should be to give a fair chance to the assessee to justify their claim for any benefit provided by law. Lest, the assessment proceedings would be perfunctory rendering it to be a mechanical exercise. We are of the considered opinion that the provisions of section 10 A (3) of the Act cannot be made applicable to the case of the assessee, if the assessee is covered by the provisions of section 10AA of the Act and even otherwise, the AO is free to verify whether the full consideration of the export activity is brought to India in convertible foreign exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the justification to claim such exemption, the assessee furnished the audit report in form No. 56Fwhere in column No. 13 the assessee had shown the total export turnover of ₹ 1,05,76,018.48and claimed as profit ₹ 57,02,774/- under section 10AA of the Act. Learned Assessing Officer found that the assessee had not fulfil the conditions for claiming the exemption under section 10 AA of the Act and has not furnished any evidence of the full consideration in convertible foreign exchange being the brought to India within a period of 6 months from the end of the previous year and the particulars furnished under column 16 of the report in form No. 56F were said to have been not applicable. Learned Assessing Officer, therefore, recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no such requirement under section 10AA of the Act. 5. Ld. CIT(A) observed that form 56F is applicable to the case under section 10AA of the Act and therefore the report of the prescribed auditor in form No. 56 has to be submitted by the claimant of the exemption and the said form number 56F has to be filled up as prescribed; and that once particular information is required to be disclosed in form number 56F and the same is not done under the powers of delegated legislation of the Central government and the assessee has not challenged the constitutional validity of the same, form number 56F has to be complied with in totality as per letter. Ld. CIT(A) further held that there is no provision in law which permits the auditor as prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that though the condition of bringing the full consideration of the export activity within 6 months into India in convertible foreign exchange, is not available to the case under section 10AA of the Act, still the assessee had complied with the same and merely because the auditor mentioned that the details required in column No. 16 of form 56F are not applicable to the case of the assessee, it does not mean that assessee did not do so. In all fairness, the authorities below should have made enquiries on this aspect and without doing so the assessment is framed, and that is the reason why such an assessment is bad under law. 7. Per contra, Ld. DR submitted that all the conditions of section 10A of the Act are applicable to the cases unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April, 2001, unless the assessee furnishes the prescribed form, along with the return of income, the report of an accountant, as defined in explanation below subsection (2) of section 288 of the Act. 9. It is pertinent to note that while inserting section 10 AA of the Act it is specifically provided by way of subsection (80 thereof that the provisions of subsection is (5) and (6) of section 10 A shall apply to the articles or things or services referred to in subsection (1), reference to subsection (3) of section 10 A is conspicuously absent. When the legislature thought it fit to make certain conditions of section 10 A of the Act applicable to the provisions in section 10 AA of the Act, by specifically omitting certain other subsection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case, however, is not relating to any substantive financials are operations of the assessee, but it is only clarificatory in nature to say that even otherwise the assessee complied with the conditions required under subsection (3) of section 10 A of the Act. When we keep in mind that the entire exercise of assessment is to determine the just and correct tax liability of the assessee, refusing to look into the relevant material, though submitted at a belated stage, in the absence of any mandatory provisions of law prohibiting such a course, would run contrary to the object of assessment proceedings. Unless prohibited or provided contrary, all the endeavour in the assessment proceedings should be to give a fair chance to the assessee to ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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