INCOME TAX OFFICER Vs. VXL INDIA LIMITED

JUDGEMENT

(1.) THE revenue has filed this Tax Appeal under Section 260a of the Income-Tax Act, 1961 proposing to formulate the following substantial question of law for determination and consideration of this Court: "whether, the Appellate Tribunal is right in law and on facts in restoring the matter to the Assessing Officer to decide the issue of grant of deduction under Section 80hhc when the said claim was neither made nor certificates of the auditor was filed under Section 10ccab of the Act along with return of income?""

(2.) THIS court has admitted this Tax appeal on 30-8-2000 reframing the following substantial question of law : "whether, the Appellate Tribunal was right in making a remand of the case to the Assessing Authority for considering the claim of deduction u/s 80 HHC regardless of the fact that in accordance with sub-section (4) of the said Section, the assessee had not submitted the requisite report with the certification of the Accountant and the said report with the certificate was produced in the course of assessment ?""

(3.) THE facts giving rise to the present Tax Appeal are that the assessee has made claim for deduction u/s 80hhc of the Income-Tax Act during the course of assessment proceedings. No such claim was made by the Assessee at the time of filing of the return of income. It was the case of the assessee that the claim u/s 80hhc of the Act could be put up even in the assessment proceedings subsequently. The Assessing Officer held that with the plain reading of sub-section (4) of Section 80hhc makes it clear that no deduction under sub-section (1) shall be admissible unless the assessee furnished report of the Accountant as defined in sub-section along with the return of income. Keeping in view the said provisions, the Assessing Officer has rejected the claim of the assessee.