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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 ..... pany and has been engaged in the business of trading of wool and yarn, publication and research work. For the assessment year 2012-13, it has filed its return of income on 30/11/2012 declaring an income of Rs. 42,96,600/-. During the year, the assessee to the tune of Rs. 8,43,23,793/- and net profit of Rs. 74,409/-. Assessee claimed exemption under section 10 AA of the Income Tax Act, 1961 (for short "the Act") for Rs. 57,02,774/-. 3. When the learned Assessing Officer sought to 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 Rs. 1,05,76,018.48and claimed as profit Rs. 57,02,774/- under section 10AA of the Act. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end of the previous year; that they form No. 56F was initially introduced for claiming exemption under section 10 A of the Act and thereafter was made applicable to the provisions of section 10AA of the Act when such provision was inserted in the statute; and that there is a specific requirement under section 10A of the Act to bring the full process of the export activity in convertible foreign exchange to India within 6 months from the end of the relevant year, there 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 sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore the auditor is justified in stating in form 56F that the details of column 16 are not applicable. Further, learned Assessing Officer also did not enquire as to the reason for non-applicable tea of the details mentioned in column 16 to the case of the assessee and without giving an opportunity to the assessee on this aspect, learned Assessing Officer disallowed the claim of the assessee for exemption claimed under section 10AA of the Act. Ld. AR submitted 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 me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs or computer software exported out of India are received in, are brought into, India by the assessee in convertible foreign exchange, within a period of 6 months from the end of the previous year or, within such further period as the competent authority may allow in this behalf. At the same time, subsection (5) thereof says that the deduction under section 10A of the act shall not be admissible for any assessment year beginning on or after the 1st day of 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 specifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, and if the learned Assessing Officer was of the opinion that it was necessary, in all fairness, there should have been some enquiry as to why the auditor said that such information was irrelevant or not applicable, instead of saying that the conditions underlying such information are not complied with by the assessee. 11. There is no provision in the Act permitting the filing of a revised auditor's report. The revised auditor's report, in this 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 enti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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