TaxTMI 
TaxTMI 
2014 (11) TMI 562
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....pter VI-A with reference to gross total income as per 80-A would get precedence over deduction u/s. 32AB admissible with reference to such `income chargeable under the head profits and gains of business or profession?' 2. Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was right in holding that an unsigned audit report filed in the course of assessment proceedings can be taken note of, even though not filed along with return of income as required by law?' 2. The facts of the case are that the assessee, a private limited company, is engaged in cutting and polishing of rough diamonds. The assessee company claimed deductions under Sectio....
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....ication vide order passed under Section 154 dated 8.8.1991. On appeal against the order under Section 154 of the Act, the learned CIT(A) confirmed the action of the Assessing Officer vide his order dated 27.12.1991 by placing reliance on Section 29 of the Act. On second appeal, the Tribunal vide its order dated 10.9.1997 deleted the prima facie adjustment made by the Assessing Officer holding that the prima facie adjustment cannot be made after the case is selected for scrutiny. However, on merits of the case, the Tribunal did not make any observation. 3. In the scrutiny assessment made under Section 143(3) of the Act which is subject matter of the appeal, the Assessing Officer allowed the deductions under Section 80HHA and 80-I of the Act....
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....B is the deduction from total income itself as the section opens with the words "subject to the other provisions of this Section, where an assessee whose total income includes income chargeable to tax under the head `profits and gains of business or profession' has out of such income. This also leads to the interpretation that the deduction under Chapter VI-A must be given before applying the provisions of Sec. 32AB. The case of the assessee stands squarely covered by the judgement of Orissa High Court in the case of CIT Vs. Tarun Duyog (191 ITR 888) and of Karnataka High Court in the case of CIT vs. H.M.T. Ltd. (1993) 199 ITR 235. There is also direct decision of the Ahmedabad Bench of the Tribunal in the case of Asst. CIT Vs. M/s. Madhu S....
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....the Tribunal's order with regard to the unsigned audit report reads as under: "para 12 - The Revenue came up in appeal before the Tribunal against both the orders of the CIT(A) dated 27.12.91 (against order u/s. 154) and 27.12.92. In the appellate order (ITA No. 793/Ahd/1992) relating to Revenue's appeal against the order of the CIT(A) dated 27.12.91 this Tribunal vide order dated 17.4.97 held that on perusal of sec. 80HHC it is clear that it nowhere requires that audit report filed should be signed and accordingly it cannot be said that the requirement of subsec. (4) was not complied when the assessee filed copy of the said report along with return of income. In the said o....
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....nder Section 80HHC is to be given. Accordingly, we answer question No. 1 in favour of the Revenue and against the assessee. So far as question No. 2 is concerned, we answer the question in favour of the assessee in view of the decision of this Court in the case of CIT VS. GUJARAT OIL AND ALLIED INDUSTRIES reported in 201 ITR 325 wherein it is held as follows: "Section 80J of the Income-tax Act, 1961, gives special deductions to new industrial undertakings and hotels, provided the conditions laid down therein are fulfilled. The benefit will be subject to the provisions of sub-section (6A) of Section 80J. The first part of sub-section (6A) lays down that the deduc....
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.... Officer. This would result in absurdity. It has also to be kept in view that by the mere non-filing of the auditors' report along with the return of income, the assessee does not stand to gain anything nor does the Revenue stand to lose, as even after the return is filed, it is obvious that it may take time before the Income-tax Officer applies his mind to the merits of the return, when he sits down to frame the assessment. At the time of framing the assessment, the assessing authority is vested with full powers under the Civil Procedure Code, 1908, as laid down by Section 131(1) of the Act. He can also ask for production of books of account and other documents. That shows that the stage which is relevant for considering the merits of ....