CIT JODHPUR Vs. SHRI L M SINGHVI

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE substantial question of law which arises for consideration in this case as suggested by the appellant is as under:- " Whether on the facts and circumstances of the case, the ITAT was right in holding that filling of the audit report under Section 32ab (5) during the assessment proceedings and not along with the return of income would satisfy the requirements of the aforesaid section?

(3.) THESE provisions under Section 32ab are paramateria with the provisions relating to certain benefits extended to assessees under Section 80 and 80hhc of the Income Tax Act. For the present purposes primary requirement of Sec. 32ab (1) is (i) that total income of assessee must include income chargeable under head profit and gains of business or profession. (ii) That the amount must be deposited in deposit accounts maintained for this purpose in a Development Bank and (iii) such amount must be deposited before six months from the end of previous year or before filing return. With alternative to above deposit, utilisation in terms of clause (b) of Sec. 32ab, is not the present concern. The respondent-assessee had fulfilled all these conditions is not in dispute. Procedural requirement is that deduction is not admissible until the accounts of the assessee claiming such deduction of the previous year relevant to assessment year in question are audited and report of such auditor is furnished along with return.