Appeal allowed in tax case, emphasizing CBDT's delay condonation as compliance. Matter remanded for further examination.

The Tribunal allowed the appeal filed by the assessee, emphasizing that the CBDT's condonation of the delay in filing the return of income should be considered as compliance with the conditions prescribed in the proviso to section 10A(1A) of the Act. The decision was pronounced on 31.07.2020. The matter was restored to the A.O. for further examination of the claim made by the assessee u/s 10A of the Act, as the CBDT's order did not automatically accept the claim but authorized the A.O. to assess it on merits.

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Issues:
1. Disallowance of claim made by the assessee u/s 10A of the Income-tax Act,1961.
2. Re-opening of assessment u/s 147 of the Act due to delayed filing of return.
3. Condonation of delay in filing return of income by the Central Board of Direct Taxes (CBDT).
4. Interpretation of provisions of section 119(2)(b) of the Act.
5. Whether the assessee complied with the conditions prescribed in the proviso to section 10A(1A) of the Act.

Analysis:
1. The appeal was against the disallowance of the claim made by the assessee u/s 10A of the Act. The assessee, a software development company, claimed deduction u/s 10A for the assessment year 2008-09. The return of income was delayed by 10 minutes due to technical issues, filed on 1.10.2008 instead of 30.9.2008. The claim was disallowed by the Assessing Officer (A.O.) in the re-opened assessment under section 147 of the Act.

2. The A.O. re-opened the assessment based on the delayed filing of the return beyond the due date. The assessee challenged this decision before the Ld. CIT(A) and also filed an application before the CBDT to condone the delay in filing the return of income. The CBDT, after examining the matter, condoned the delay but clarified that it does not amount to automatic acceptance of claims made in the return.

3. The Tribunal analyzed the provisions of section 119(2)(b) of the Act, which allows for the admission of applications or claims for exemptions or deductions after the prescribed period. The CBDT's order was seen as authorizing the A.O. to deal with the claim on merits, not automatically accepting it. The Tribunal held that the CBDT's order effectively relaxed the condition prescribed in the Act regarding the filing of the return of income.

4. The Tribunal concluded that the CBDT's order should not be construed as automatic acceptance of the claim for deduction u/s 10A. The A.O. was to examine the claim on its merits. Consequently, the Tribunal set aside the Ld. CIT(A)'s order and restored the matter to the A.O. for further examination of the claim made by the assessee u/s 10A of the Act.

5. In summary, the Tribunal allowed the appeal filed by the assessee, emphasizing that the CBDT's condonation of the delay in filing the return of income should be considered as compliance with the conditions prescribed in the proviso to section 10A(1A) of the Act. The decision was pronounced on 31.07.2020.

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