| |
| The Tax Publishers2020 TaxPub(DT) 1230 (Mad-HC) INCOME TAX ACT, 1961
Section 139 Section 10B
Since failure of assessee to claim deduction under section 10B on account of delay comes in legitimate way of assessee claiming deduction, therefore aforesaid failure was to be construed liberally to allow benefit, because strict application of procedure should not come in grant of legitimate export incentive to an assessee.
|
Return under section 139 - CBDT declined to condone delay in filing returns under Section 139 - Assessee failed to claim deduction under Section 10B because of CBDT's order -
Assessee was aggrieved by order passed by Central Board of Direct Taxes under Section 119(2)(b). By said order, CBDT declined to condone delay in filing returns under Section 139 as a result of which, assessee's claim for deduction under Section 10B for the assessment year 2008-09 and the assessment year 2009-10 stood finally disallowed. Held: Claim for deduction under Section 10B is dependent on returns filed by due date as per Section 139(1). However, failure of assessee to claim deduction on account of delay comes in the legitimate way of assessee claiming deduction. Failure to file returns in time was to be construed liberally to allow benefit, provided such applications are made within a reasonable time. Failure on part of assessee to file such returns in time ought to have been condoned by CBDT. After all procedures are meant only to discipline and regulate the conduct of assessees. However, strict application of procedure should not come in the grant of legitimate export incentive to an assessee. Therefore, writ application of assessee was allowed and revenue was directed to complete reassessment on merits by accepting returns filed by assessee to grant of deduction under Section 10B, in case, he was otherwise entitled to deduction.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
 SUBSCRIBE FOR FULL CONTENT
|