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TMI Blog2022 (7) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... us year is regarded as a small-scale industrial undertaking under Sec. 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951). As such, what is required is that the stipulations for being regarded as a SSI under the Industries (Development and Regulation) Act, 1951 are required to be complied with and there is no obligation cast upon the assessee to file any certificate from the competent authority that it is registered as a SSI. Involving identical facts, we find that the assessee s claim for deduction u/s 80IB was, inter alia, dislodged by the CIT vide his order passed under Sec. 263 of the Act for AY 2009-10. However, on appeal, the Tribunal had vide its order passed [ 2018 (3) TMI 1937 - ITAT RAIPUR] vacated the adverse inferences drawn by the CIT on the aforesaid count and, had observed, that the registration of the assessee as a SSI was not a precondition for availing deduction u/s 80IB of the Act. Be that as it may, we find that the assessee had vide its letter dated 25.01.2017 filed before the CIT(Appeals) a copy of its registration certificate as a SSI. No adverse inferences qua the entitlement of the assessee for deduction u/s 80IB could have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on point of law, the Hon'ble ITAT, being a first fact finding authority was justified in giving relief to the assessee without verifying the eligibility criteria of the assessee as per legal parameter of the provisions of section 80-IB(4) of the Act. 5. Whether on points of facts and on point of law, the ld. CIT(A) was justified in giving of a finding which is against the ratio of decision of Hon'ble Supreme Court in the case of DCIT, Circle-11(1), Banglore Vs Ms/ Ace Multi Axes Systems Ltd in civil appeal No. 20854 of 2017 wherein it is held that the assessee is not entitled to benefit of exemption if it loses its eligibility as a small scale industrial undertaking in a particular assessment year even if in initial year eligibility was satisfied ? 6. Whether on facts circumstances of the case and points of law, the Ld. CIT(A) having concurrent powers of the AO as per the due provisions of law u/s 250(4) of the I T Act, was justified in giving the finding that assessee is entitled for deduction u/s 801B of the Act without verifying the eligibility criteria of the assessee? 7. Whether on points of law and on facts circumstances of the case, the ld. CIT(A) wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SSI), reopened its case u/s 147 of the Act. 4. During the course of the reassessment proceedings though the assessee filed a copy of the audit report in Form No. 10CCB, but failed to place on record a certificate from the competent authority that it was a SSI. Holding a conviction that the assessee s claim for deduction u/s 80IB was not in order, the AO vide his order passed u/s 147 r.w.s. 143(3), dated 31.03.2015 declined its claim for deduction 80IB and reassessed its income at Rs. 4,67,49,313/-. 5. Aggrieved the assessee carried the matter in appeal before the CIT (Appeals). It was observed by the CIT(Appeals) that the assessee in support of its claim for deduction u/s 80IB had not only in the course of the reassessment proceedings filed the audit report in the prescribed Form No. 10CCB, but had also placed on record a copy of the same in the course of the proceedings before him. Holding a conviction that the filing of an audit report was merely in the nature of a procedural and a directory requirement and the same could validly be filed in the course of the appellate proceedings, the CIT(Appeals) drawing support from the order of the Tribunal in the assessee s own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failure on the part of the assessee to file a certificate from the competent authority evidencing that it was registered as a SSI would divest its entitlement towards deduction u/s 80IB of the Act. 9. We have given a thoughtful consideration to the aforesaid issues in hand. In so far the filing of an audit report as prescribed in Form No. 10CCB by the assessee is concerned, we concur with the view taken by the CIT(Appeals) that as the same is merely a procedural or a directory requirement, therefore, the same could validly be filed by the assessee at the appellate stage. As the case of the assessee firm was reopened qua its claim of deduction u/s 80IB of the Act, therefore, now when the assessee in the course of the reassessment proceedings had a/w its letter dated 19.03.2015 filed the audit report in the prescribed Form No. 10CCB, then, the AO could not have brushed aside the same and remained under an obligation to consider the same. Apart from that, we find that the Hon ble High Court of Madhya Pradesh in the case of CIT Vs. Medicaps Ltd. (2010) 323 ITR 554 (MP), had held, that as filing of an audit report is merely a procedural and directory requirement in nature, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a small-scale industrial undertaking under Sec. 11B of the Industries (Development and Regulation) Act, 1951 (65 of 1951). As such, what is required is that the stipulations for being regarded as a SSI under the Industries (Development and Regulation) Act, 1951 (65 of 1951) are required to be complied with and there is no obligation cast upon the assessee to file any certificate from the competent authority that it is registered as a SSI. Involving identical facts, we find that the assessee s claim for deduction u/s 80IB was, inter alia, dislodged by the CIT vide his order passed under Sec. 263 of the Act for AY 2009-10. However, on appeal, the Tribunal had vide its order passed in ITA No. 32/RPR/2014, dated 09.03.2018 vacated the adverse inferences drawn by the CIT on the aforesaid count and, had observed, that the registration of the assessee as a SSI was not a precondition for availing deduction u/s 80IB of the Act. Be that as it may, we find that the assessee had vide its letter dated 25.01.2017 filed before the CIT(Appeals) a copy of its registration certificate as a SSI (Page 3 of APB). On the basis of our aforesaid observations, we are of the considered view that no adv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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