TaxTMI 
TaxTMI 
2011 (8) TMI 1149
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....ngs the assessee was asked to so cause as to why deduction u/s 80 IB of the IT Act should not be disallowed as the assessee failed to file its return of income on or before the due date. The assessee submitted before the AO that during the year the due date of filing of return for the assessee covered u/s 44AB of the IT Act was 31-12-2006 and the assessee filed return before the due date of filing of the return. The AO did not accept the contention of the assessee because circular quoted by the assessee did not find extension of filing of return for the assessees of Daman. The extension of filing of the return was applicable for the assessees for Gujarat only. Daman is a Union Territory and is a separate entity and the Income Tax Office is situated at Daman and the factory of the assessee has already been set up at Daman itself. The Board has not extended due date in Daman. The claim of the assessee for deduction u/s 80 IB of the IT Act was accordingly rejected. 4. The order of the AO was challenged before the learned CIT(A) and the assessee submitted that the CBDT on consideration of the report of disruption caused due to heavy rains and floods in the state of Gujarat and in exer....
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....by the earlier order dated 13-10-2006. Thus according to the assessee on a combined reading of both these CBDT orders the phrase "income tax assessee in the state of Gujarat" would mean "income tax assessee assessed or assessable in the state of Gujarat." The assessee further submitted before the learned CIT(A) a copy of its PAN and TAN details from the income tax's official website. It was submitted that the said details allotted by the department clearly indicates under the head jurisdiction as Gujarat. Similarly it was also submitted that the appellate proceedings pertaining to the assessee are held at Valsad and Ahmedabad being the location of CIT(Appeals) and Income Tax Appellate Tribunal respectively. Accordingly it was vehemently argued that the assessee is assessed in the state of Gujarat. The learned Counsel for the assessee has further relied upon following legal precedents touching upon interpretation of taxing statutes providing incentive for growth and development which need to be construed so as to advance the objective and not to frustrate it. "BAJAJ TEMPO LTD v/s CIT [1992] 196ITR page 188 (SC) Held a provision in a taxing statute granting incentives for prom....
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....T(A) considering the explanation of th4e assessee in the light of the material on record allowed the appeal of the assessee and deleted the addition. His findings in Para 5.6 are reproduced as under: "5.6 I have perused the facts of the case and the submissions put forth by the learned A.R. of the appellant. The only dispute in this issue is regarding the question as to whether the appellant can be classified as an assessee in the State of Gujarat in the light of the honorable CBDT Circular. Admittedly the CBDT has extended the due date of filing return of income in the case of income tax assessees in the state of Gujarat. The appellant is assessed to tax under the jurisdiction of CCIT, Ahmedabad. I have also perused legal precedents placed before me and the principle of liberal interpretation of taxing statutes providing for growth and development in a way so as to advance objective and not to frustrate it as enunciated by the honourable Supreme Court on more than one occasions. 5.6 Before adjudicating the issue in dispute I would like to delve into the intents and obviously owing to heavy floods in the state of Gujarat there was disruption of work and life. The Board has reco....
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....llant can be considered as income tax assessee in the state of Gujarat as envisaged in the above mentioned CBDT orders and accordingly the CBDT order No. F. No. 220/5/2006-ITA-II dated 13-10-2006 extending the due date for filing of return of income to 31-12-2006 in case of the income tax assessee in the state of Gujarat is binding on the AO. The appellant succeeds in this ground of appeal." 6. The learned DR relied upon the order of the AO and submitted that since the assessee situated in Daman and the Board Circular has not extended the date of filing of return, therefore, claim of the assessee has been rightly rejected. The assessee has filed written submission in which the same facts have been reiterated. It was also explained that Income Tax Office at Daman is not even independent office from that of Income Tax Office at Vapi. Vapi is under jurisdiction of CIT, Valsad and CCIT, Surat. The designation of the Assessing Officer who passed the assessment order in question is ITO, Vapi, Ward-4, Daman. The seal of acknowledgement on the return of income filed by the assessee on 01-12-2006 mentioned seal of Income Tax Office, Vapi, Ward-4, Daman. The area code and jurisdiction in TA....