2014 (5) TMI 582

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....original return of income, nor was a revised return filed. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not taking into consideration the amendment to Section 80A(5) and the Hon'ble Supreme Court decision in the case of M/s. Goetze (India) Ltd., 284 ITR 323." 3. Though notice was sent to the assessee by RPAD none appeared on behalf of the assessee. We, therefore, proceed to dispose of the appeal on merits exparte, qua assessee. 4. We have heard the learned D.R. in this regard and carefully perused the record. The undisputed facts of the case are stated in brief. The assessee is engaged in the business of medical transcription. It filed return of income electronically on 24.07.2007 declaring Nil in....

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....een met by the assessee, and (c) There is also no dispute regarding the fact that in the return of income the assessee claimed deduction of the amount admissible as deduction under section 10A by mentioning it as section 10B of the Act. Thus the only dispute that exists is whether the claim of the assessee regarding deduction under section 10A is allowable if the claim was made under section 10B in the return of income. 7. The learned CIT(A) has also taken note of the fact that in the remand report the AO has not objected to the allowability of the claim under section 10A of the Act. In this regard he observed that the AO had raised no queries to the assessee regarding its compliance to provisions of section 10B. Had there been an enquiry,....

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.... so long as the other conditions for making such claim are satisfied. He relied upon the circular issued by the CBDT dated 11.04.1955 wherein it was observed that it is the duty of the AO to guide the assessee with regard to eligibility to claim deduction; in the instant case when the assessee claimed deduction under section 10B the AO ought to have guided the assessee with regard to eligibility to claim deduction under section 10A of the Act. He also relied upon a recent decision of the ITAT to hold that if all the facts are placed before the lower authorities the assessee should not be denied the benefit of a claim on merits merely because it was not properly projected. Having regard to the factual matrix of the case the learned CIT(A) di....

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....re the appellant was not liable for the said deduction. The said deduction under section 10A cannot be denied merely because at the time of filing of return the claim had been made under section 10B of the Income Tax Act. The principle behind the observation of the Hon'ble Court in the case of Nandlal Jaiswal and Co. v. CIT (1997) 142 CTR (MP) 501 where it has been stated that wrong mention of the provision does not invalidate the penalty is squarely applicable here. 6.4 A reading of the remand report of the Assessing Officer also makes it very clear that the denial to the deduction has been advocated on account of a technical error made by the appellant. If it wasn't for this technical error the appellant was very much eligible to cla....