TaxTMI 
TaxTMI 
2014 (8) TMI 674
X X X X Extracts X X X X
X X X X Extracts X X X X
....peals, the Revenue has assailed the allowability of deduction u/s.80-IC of the Income Tax Act, 1961 (herein after referred to as 'the Act') to assessee, in the light of the fact that the assessee had filed electronic return of income after the due date as specified in section 139(1) of the Act. 2. The facts as emanating from records are: The assessee-company is engaged in the business of manufacturing of drugs and medicines. For the AY.2010-11, the assessee had filed manual return of income on 09-09-2010. Subsequently, the assessee filed return of income in electronic mode (e-mode) on 25-01-2011. The assessee had claimed deduction u/s.80-IC of the Act. The case of the assessee was selected for scrutiny and notice u/s. 143(2) was issue....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lectronically under digital signature. The assessee has not complied with the provisions of the Act and Rules in both the AYs thus, the assessee is not eligible to claim deduction u/s.80-IC. 4. Au Contraire Shri N.Devanathan, appearing on behalf of the assessee submitted that for the AY.2010-11, the assessee had filed return of income manually on 09-09-2010. The due date for filing of return was 30-09-2010. Thus, the assessee had complied with the substantive provisions of the Act in filing of the return. Electronic filing of return was made mandatory from the AY.2010- 11. The accountants of the assessee were not aware that the return has to be filed in e-mode. As soon as it came to the knowledge of the accountants, the return was furnis....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....Mathi & Associates have given an affidavit that they were not fully aware of the fact that the return has to be filed before 30th September, by 'e-mode'. 6. The manual filing of return before 30-09-2010 has not been denied by the Revenue. A perusal of Rule 12(3) shows that clause (ab) was inserted by the IT (Seventh Amendment) Rules 2010. The AY.2010-11 was the first AY from which furnishing of return in electronic mode was made mandatory. The accountants/tax consultants of the assessee may be due to oversight missed the amendment in the Rules. Since manual return of income was furnished well before the due date, the assessee has complied with the substantive provisions of the Act. In these circumstances, deduction u/s.80-IC cannot be d....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of ignorance of tax consultants was given to the assessee in AY.2010-11. After committing the mistake once, if the same mistake is committed again in the next AY, it is un-pardonable. We are of the opinion that the assessee does not deserve any clemency. The assessee has not complied with the provisions of section 80AC and is thus not eligible to claim deduction u/s.80-IC. 8. The ld.Counsel for the assessee in support of his contentions has placed reliance on the decision of the Hyderabad Bench of the Tribunal in the case of ITO Vs. S.Venkataiah (supra). In the said case, the delay in filing of the return was explained. The computer in which the accounts were prepared got corrupted due to virus. Despite best efforts, the data could not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....: "12. .................As argued by the learned counsel appearing for the assessee, the statute consisting of Act and Rules speak of filing of return before due date and contents of that must be furnished in that return. The format has been prescribed by the Rules and also the contents have been prescribed by the Rules. Filing of the return also has been prescribed by the Act. Nowhere in the Act or Rules, there is a mandatory provision that the return must be filed only electronically. This compulsion has been made as a result of the direction issued by the CBDT. As rightly argued by the learned counsel, the direction of the CBDT cannot go beyond the Act and Rules. It cannot overtake the apparent words of the statute. Therefore, what we....