CIT Vs. JYOTI JAIN

JUDGEMENT

(1.) Heard learned Counsel for the parties.

(2.) This appeal has been filed by the revenue against the judgment of Tribunal dated 29-4-2005. Learned Tribunal had dismissed the appeal of the revenue, and affirmed the order of Commissioner (Appeals). Learned Commissioner (Appeals) allowed the appeal of the assessee, and held that since the assessee has produced the certificate obtained from District Industries Centre, wherein a sum of Rs. 4,83,449 was certified to have been converted into loan, the disallowance made under Section 43B was set aside, and the assessing officer was directed to allow the claim, after verification of the certificate. Then disallowance under Section 80-IA was also set aside, while holding, that the appellant had filed her return of income on 21-10-1998, along with the audit report as required by Section 44AB, and during the course of assessment proceedings, claim for deduction was also made under Section 80-IA, vide letter dated 13-11- 2000, contending that all the necessary conditions for claiming deduction are fulfilled, and also filed the report in Form No. 10CCD, as prescribed under Sub-section (7) of Section 80-IA. This was disallowed by the assessing officer, on the ground, the appellant was required to file the report in Form No. 10CCD "along with the return". It was contended before the Commissioner (Appeals), that the assessee did not claim any deduction under Section 80-IA in the return filed under Section 139(1). However, after filing of the return, it came to her notice, that the return did not take into account claim of the deduction under Section 80-IA, in respect of unit M/s Avani Minerals Industries. Accordingly, the account was got audited, and a report, as required by Sub-section (7) of Section 80-IA was obtained, and the claim for deduction was made, during the course of assessment proceedings. Learned Commissioner (Appeals), relying upon the judgment reported in Hemsons Industries v. ITO,1987 23 ITD 364 (Hyd-Trib), found the requirement of filing the report along with the return was directory, and held, that the claim of deduction is allowable.

(3.) The Tribunal held, that the requirement of filing report along with return of income is directory, and not mandatory, and if the said report is made available to the assessing officer during the course of assessment proceedings, the lawful deduction to the assessee should not be rejected.