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| The Tax Publishers2019 TaxPub(DT) 3954 (Ahd-Trib) INCOME TAX ACT, 1961
Section 10A
Where assessee filed report in Form No. 56F along with revised return of income before completion of assessment, the assessee had sufficiently complied with povision of section 10A as it was not mandatory but directory, deduction under section 10A claimed by assessee could not, therefore, be denied.
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Deduction under section 10A - Filing of report in Form No. 56F - Whether directory or mandatory - Report filed before completion of assessment proceedings
Assessee was a partnership firm and engaged in the manufacturing business of glass lenses and frames. AO during the assessment proceedings observed that assessee had not furnished report in Form 56F within the time as provided under section 10A(5). Therefore, the AO denied the deduction claimed by the assessee for Rs. 25,15,494 under section 10A as claimed by the assessee. As the assessee filed the report in Form 56F in the revised return of income, accordingly the AO was of the view that there was no report filed by the assessee in Form 56F along with the original return of income. Therefore, the AO denied the deduction claimed by the assessee under section 10A in the absence of audit report in Form 56F. CIT(A) confirmed the order of the AO. Assessee submitted that the report in Form 56F was filed during the assessment proceedings under section 147 before the completion of the assesment. Therefore, the assessee had duly complied with the provisions of section 10A(5). Held: The assessee in the instant case file revised return of income dated 26-10-2010 along with the report in Form 56F dated 25-9-2010 claiming the deduction under section 10A. Filing the prescribed report during the assessment proceedings will suffice the requirement of the provisions of section 10A. Assessee had filed the report in the prescribed form before the completion of the assessment proceedings under section 147. Therefore, the assessee had sufficiently complied with the provisions of section 10A for claiming the deduction. Hence, no disallowance in the given facts and circumstances can be made due to non-filing of the report in Form 56F within the time as prescribed for the deduction under section 10A. Accordingly, the claim of assessee deserves to be allowed and the appeal of the assessee was found fit to be allowed.
Followed:Xavient Software Solutions (India) Pvt. Ltd. v. CIT ITA No. 140/DEL/2017] : 2018 TaxPub(DT) 2079 (Del-Trib). Applied:CIT v. Gujarat Oil and Allied Industries (1993) 201 ITR 325 (Guj) : 1993 TaxPub(DT) 643 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, AHMEDABAD BENCH
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