2008 (8) TMI 928 - HC - Income Tax

High Court rules on appeal: Deductions disallowed under s. 80IA, upheld under s. 43B.

The High Court partly allowed the appeal, setting aside the deduction claimed under s. 80IA but upholding the deduction under s. 43B. The Court ruled in ... - Issues involved: Appeal against Tribunal's judgment on disallowance under s. 43B and s. 80IA.Disallowed deduction under s. 43B: The assessee produced a certificate from District Industries Centre certifying a sum converted into a loan, leading to the disallowance under s. 43B being set aside by CIT(A). The Tribunal held that filing the report along with the return is directory, not mandatory, and if provided during assessment proceedings, deduction should not be rejected.Disallowed deduction under s. 80IA: The appellant filed for deduction under s. 80IA after noticing it was not claimed in the return, supported by necessary documents during assessment proceedings. CIT(A) allowed the deduction, citing a judgment that the requirement of filing the report along with the return is directory, not mandatory.Judicial decisions: The High Court held that the requirement of filing the report along with the return for claiming deduction under s. 80IA is not just limited to the stage of 'during the assessment proceedings.' A previous judgment was referenced where a similar distinction was not accepted. The Court ruled in favor of the Revenue for question No. 1 and against the assessee for question No. 2 based on relevant case laws.Final decision: The appeal was partly allowed, setting aside the deduction under s. 80IA and upholding the deduction under s. 43B. The AO was directed to take necessary actions, and each party was ordered to bear their own costs of the appeal.