Tribunal overturns Commissioner's decision, upholds assessee's tax deduction, and condones appeal delay.

The tribunal allowed the appeals by the assessee, quashing the directions of the Commissioner of Income Tax under section 263. It found that the Assessing Officer's actions were justified, condoning the delay in filing the appeal and upholding the allowance of deduction under section 80-IB. The tribunal concluded that the Assessing Officer's acceptance of a certain amount for taxation was not erroneous, leading to a favorable outcome for the assessee in the case.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Validity of the order passed by the Pr. Commissioner of Income Tax under section 263 of the Income Tax Act, 1961.
3. Examination of the allowance of deduction under section 80-IB.
4. Alleged double deduction on account of partners' salary.

Detailed Analysis:

1. Condonation of Delay in Filing the Appeal:
The appellant requested the condonation of a 196-day delay in filing the appeal, attributing the delay to the indisposition of a partner due to hypertension and bronchial asthma, supported by a medical certificate. The tribunal, after careful consideration and in the interest of substantial justice, agreed to condone the delay.

2. Validity of the Order Passed by the Pr. Commissioner of Income Tax under Section 263:
The Pr. Commissioner of Income Tax set aside the Assessing Officer's order which accepted the assessee's claim of deduction under section 80-IB, citing that the returns were filed belatedly. The tribunal noted that the Commissioner directed the Assessing Officer to re-examine the allowance of the deduction under section 80-IB after providing the assessee an opportunity to be heard.

3. Examination of the Allowance of Deduction under Section 80-IB:
The Commissioner of Income Tax observed that the returns for the assessment years 2011-12 and 2012-13 were filed late, and thus, the deduction under section 80-IB should not have been granted as per section 80AC. The tribunal, however, referred to multiple case laws, including decisions by the Hon'ble jurisdictional High Court and the Hon'ble Supreme Court, which held that returns filed within the extended time specified under section 139(4) should be considered as filed within the time prescribed under section 139(1). Consequently, the tribunal found no infirmity in the Assessing Officer's order granting the deduction under section 80-IB, as the returns were not filed beyond the time limit specified under section 139(4).

4. Alleged Double Deduction on Account of Partners' Salary:
The Commissioner of Income Tax noted a survey conducted under section 133A, where the assessee declared additional income of Rs. 1.55 crores for the assessment year 2011-12. The Commissioner directed the Assessing Officer to examine the alleged double deduction of partners' salary. The tribunal observed that the assessee had already claimed remuneration to partners in the profit and loss appropriation account and had offered Rs. 65 lakhs for taxation, which the Assessing Officer accepted. The tribunal emphasized that the additional income declared was eligible for deduction under section 80-IB and that the statement obtained during the survey lacked corroborative material. Therefore, the tribunal concluded that the Assessing Officer's acceptance of Rs. 65 lakhs for taxation was not erroneous or prejudicial to the interest of revenue.

Conclusion:
The tribunal quashed the directions of the Commissioner of Income Tax under section 263, finding that the Assessing Officer's actions were justified and in compliance with the relevant provisions of the Income Tax Act. The appeals by the assessee were allowed.

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