INCOME TAX ACT, 1961

Section 80-IB

Deduction under section 80-IB - Allowability - Assessee did not properly fill in Form 10CCB -

Assessee-company claimed deduction under section 80-IB. AO denied such claim on the ground that the assessee did not properly fill in Form 10CCB. He alleged that the in Form No.10CCB, the assessee failed to provide details of number of workmen working in each of its units. Held: Although there was omission on the part of the assessee whilst filling in Form 10CCB, but it was not as if such omission was not rectifiable. In fact, the AO should have granted the assessee an opportunity for rectifying the omission. Further, the assessee even prior to the assessment, produced material before the AO that clearly provided that each of the units of the assessee employed more than 10 workers. Thus, there was material before the AO to conclude that the assessee fulfilled the conditions required for claiming deduction under section 80-IB. Further, it is settled that mere non-furnishing of deduction Form 10CCB could, at the most, be a default of technical and venial nature and such omission cannot be held to be so fatal as to merit the penalty of disallowance of deduction under consideration. Hence, the assessee was granted deduction under section 80-IB.

REFERRED : Hindustan Steel Ltd. v. State of Orissa [(1972) 83 ITR 26 (SC) : 1972 TaxPub(DT) 0009 (SC)]

FAVOUR : In assessee's favour

A.Y. : 2006-07

INCOME TAX ACT, 1961

Section 80-IC

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