INCOME TAX ACT, 1961

Section 10A

Deduction under section 10A - Undertaking in free trade zone - Allowability - Assessee satisfied condition precedent

Revenue filed appeal against the order of CIT(A) allowing exemption under section 10A on the ground that assessee had not claimed exemption under section 10A in its return of income filed and had also failed to furnish the audit report in Form 56F as required under the provision of section 10A (5) read with rule 16D of the Income Tax Rules, 1962. Held: Assessee was eligible for claim of deduction under section 10A, which assessee had not claimed at the time of filing of return, because same was filed at 'NIL' income after setting off of carried forward losses. Further, as per the CBDT Notification No. 169, dated 14-5-2007, wherever the return of income has been filed electronically then assessee's were not required to file various documents, including any form or audit report which would otherwise have been required to be filed. Thus, there was no fault on the part of assessee to file Form No. 56F for the claim of deduction under section 10A.

REFERRED :

FAVOUR : In favour of assessee

A.Y. : 2007-08

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