CIT & Anr v. ACE Multitaxes Systems (P) Ltd.

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The Tax PublishersI. T. A. No. 405 of 2008 2009 TaxPub(DT) 1825 (Karn-HC) : (2009) 030 (I) ITCL 0223 : (2009) 317 ITR 0207 CIT & Anr v. Ace Multitaxes Systems (P) Ltd. INCOME TAX ACT, 1961 Deduction under section 80IA- Allowability-Failure to furnish audit report along with return *Held:* CIT(A) considered the decision of the Calcutta High Court in the case of Murali Export House v. CIT (1999) 238 ITR 257 (Cal) where similar audit report was not filed along with the return of income but later on, the same was filed. The Calcutta High Court allowed relief to the assessee holding that AO should have given time to file the audit report. In the case of CIT v. Shahzedan and Charity Trust (1997) 228 ITR 292 (P&H), the Punjab and Haryana High Court was held that the audit report under section 12A(b) could be furnished at the appellate stage. The audit report in present case was filed before AO before completion of assessment proceeding. Therefore, impugned order did not require any interference and was rejected. Section 80-IA (7) did not cast any obligation on assessee that the return must be accompanied by the audit report. There should be proper reasoning as to why in all cases it could not be accompanied by audit report and it was not necessary that in all cases, it must be accompanied by the audit report. Income Tax Act, 1961 Section 80-IA (7) Decision: In favour of Assessee. A.Y. 2003-04 SUBSCRIBE FOR FULL CONTENT

The Tax PublishersI. T. A. No. 405 of 2008
2009 TaxPub(DT) 1825 (Karn-HC) : (2009) 030 (I) ITCL 0223 : (2009) 317 ITR 0207

CIT & Anr v. Ace Multitaxes Systems (P) Ltd.

INCOME TAX ACT, 1961

Deduction under section 80IA- Allowability-Failure to furnish audit report along with return

Held: CIT(A) considered the decision of the Calcutta High Court in the case of Murali Export House v. CIT (1999) 238 ITR 257 (Cal) where similar audit report was not filed along with the return of income but later on, the same was filed. The Calcutta High Court allowed relief to the assessee holding that AO should have given time to file the audit report. In the case of CIT v. Shahzedan and Charity Trust (1997) 228 ITR 292 (P&H), the Punjab and Haryana High Court was held that the audit report under section 12A(b) could be furnished at the appellate stage. The audit report in present case was filed before AO before completion of assessment proceeding. Therefore, impugned order did not require any interference and was rejected. Section 80-IA (7) did not cast any obligation on assessee that the return must be accompanied by the audit report. There should be proper reasoning as to why in all cases it could not be accompanied by audit report and it was not necessary that in all cases, it must be accompanied by the audit report.

Income Tax Act, 1961 Section 80-IA (7)

Decision: In favour of Assessee.
A.Y. 2003-04