9911796707
TMI Blog1983 (2) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... registered firm working under the name and style of Mahalaxmi Rice Factory. For the assessment year under appeal, the return of income was due from the assessee on or before 31-7-1977. The return was actually filed on 31-8-1977, declaring net income of Rs. 81,190. In this return, the assessee made a claim for deduction under section 80J for filing the necessary particulars. However, by virtue of the provisions of sub-section (6A) of section 80J, which is effective from 1-4-1976 having been inserted by the Finance Act, 1975, the deduction under sub-section (1) of section 80J from the profits and gains derived from an industrial undertaking shall not be admissible unless the accounts of the industrial undertaking for the previous year relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the assessee submitted that the assessee was not given an opportunity to make amendments before the assessment was completed. There has been violation of the principles of natural justice. Since the assessee had made a valid claim and the necessary particulars filed, the relief should not have been disallowed on the technical ground of non-submission of the audit report along with the return. This argument was raised with the legal contention that the provisions of section 80J(6A) are only directory and, therefore, if the compliance had been made even at the appellate stage, the assessee should have been granted necessary relief to which otherwise it was entitled. Reliance was placed for this proposition on a judgment of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive to the assessee opportunity as required. It was also contended that the provisions of section 139(9) were not on the statute book when even the appeal was decided by the Commissioner (Appeals). Therefore, the grievance of the assessee that an opportunity to rectify the defect was not given in view of these provisions of the Act is unwarranted. 7. Referring to the reliance by the assessee from the judgment of the Tribunal in Coromandel Steel Products' case, it was contended on behalf of the revenue that the provisions of section 80J(6A) are mandatory because the word used for the filing of the audit report is 'shall'. In reply, the learned counsel for the assessee submitted that the word 'shall' is in a different context and so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 80J which gives some benefits to the assessee by encouraging certain types of industrial undertakings is only directory in nature and if the assessee has not furnished an audit report but has otherwise given the necessary particulars on which section 80J deduction can be computed, the claim cannot be rejected without giving an opportunity to the assessee to rectify the defect. In the case before the Madras Bench, the ITO had also entertained the claim as is the case before us. The relief is not allowed as the audit report had not been filed. Since the audit report has been filed and the proceedings are still open insofar as the assessment is under appeal and the necessary facts for admissibility of the claim were already before the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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