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Court dismisses appeal on Income Tax Act sections 80IB & 68 for AY 2005-06; upholds deduction and treatment. The appeal was dismissed in a case involving disallowance under section 80IB and addition under section 68 of the Income Tax Act for the assessment year ...
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Court dismisses appeal on Income Tax Act sections 80IB & 68 for AY 2005-06; upholds deduction and treatment.
The appeal was dismissed in a case involving disallowance under section 80IB and addition under section 68 of the Income Tax Act for the assessment year 2005-06. The court allowed the deduction under section 80IB, stating that the audit report need not be furnished at the time of filing the return. Regarding the addition under section 68, the court upheld the treatment of share application money and premium, following the judgment of the Madras High Court. The Revenue's appeal was dismissed, with the order pronounced on 19.5.2011.
Issues involved: Appeal against order disallowing claim u/s 80IB and addition u/s 68 of the Income Tax Act for assessment year 2005-06.
Disallowance u/s 80IB: The assessee, engaged in manufacturing steel ingots, claimed deduction u/s 80IB but failed to file necessary Form 10CCB along with the return of income. The Assessing Officer disallowed the claim citing non-furnishing of the required audit report. However, the ld. CIT(A) held that the audit report need not be furnished at the time of filing return and allowed the claim, noting that the purpose of the provision is to verify accounting authenticity. The Tribunal dismissed the Revenue's appeal, citing oversight in attaching the audit report and referring to a decision of the Calcutta High Court supporting the assessee's position.
Addition u/s 68: The assessee received share application money and premium from corporate entities, which the Assessing Officer treated as unexplained cash credit u/s 68. The assessee provided necessary documents during assessment proceedings and relied on a judgment of the Madras High Court, which held that even if the subscribers were not genuine, the share application money could not be treated as undisclosed income. The Tribunal upheld the ld. CIT(A)'s order, finding no fault in the treatment of the share application money and premium.
The appeal of the Revenue was dismissed, and the order was pronounced on 19.5.2011.
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