INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Allowability - Deduction originally claimed under section 10B denied by AO -

Assessment were completed under section 143(3) accepting deduction claimed under section 10B. Later on, AO reopened assessment for concerned assessment years and held in the reassessment order that assessee was not entitled to deduction under section 10B. Assessee had made alternative claim under section 10A before AO when assessments were reopened AO rejected alternative claim on the ground that same could not be examined in reassessment proceedings, same were meant for bringing to tax income which had escaped assessment and could not be basis for assessee to make claims barred by limitation. Held: Deduction under sections 10B and 10A is pari materia. When claim under section 10B was denied, assessee made alternative claim under section 10A. The alternative claim of deduction under section 10A was neither considered by AO nor CIT(A). In the interest of justice and equity, the issue of claim of deduction under section 10A restored to AO. For the purpose even if audit report was not filed in Form No. 56F along with original return, it was not fatal, provided assessee subsequently filed the same and satisfied all other conditions mentioned for claiming deduction under section 10A.

Relied:CIT v. Web Commerce (India) Private Ltd. (2009) 318 ITR 135 (Del) : 2009 TaxPub(DT) 1177 (Del-HC).

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2007-08 to 2011-12

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