TaxTMI 
TaxTMI 
2017 (7) TMI 999
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....ed return. Subsequently, the assessee filed application u/s 154 of the Act seeking a claim of deduction amounting to Rs. 30392103/- u/s 80IB and 80IC of the Act. The AO did not allow the claim of the assessee by observing as under:- i) On perusal of Schedule VIA of the ITR it is seen that the assessee as well as per System, total deduction of Rs. 4,28,609/- has only been claimed under Chapter VIA. Deduction u/s 801C is not available unless it is claimed in the return of income. ii) Assessee's accounts are subject to audit u/s 44AB of the Act. There is Audit report u/s 44AB in Form 3CD furnished by the assessee. iii) No Audit report in Form No. 10CCB for claim of deduction u/s 80IB & 801C is fifed along with the application." 3. Being aggrieved by the order of the AO the assessee carried the matter before the ld CIT(A) and submitted as under:- GROUND NO.1: The ground is general in nature and specific grounds have been raised separately. GROUND NO. 2 & 3: The appellant filed application u/s 154 of the Act on 23.03.2012 and the order has been passed on 24.09.2012 i.e at the fag end of the statutory period of six months for disp....
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....n view of the following submissions: In the return of income filed electronically the appellant claimed deductions under Chapter VI-A amounting to Rs. 3,03,94,103/- as under:- Under section 80 IB Rs. 4,26,609/- Under section 801C Rs. 2.99.65A94/- Total Rs. 3,03,94,103/- The amount of deductions under Chapter VI-A amounting to Rs. 3,03,94,103/- is duly appearing in the Income tax acknowledgment (APB -1). The appellant has downloaded the copy of return of income filed with the department from the website of the department which has been placed In the paper book (APB - 2 to 24). In this copy of return the deductions of Rs. 4,26,609/- u/s 8OIB and Rs. 2,99,65,494/- u/s 8OIC are duly appearing in the schedules of 'Deduction u/s 8OIB and 'Deduction u/s 8OIC and also in 'Schedule VIA deductions under Chapter VI-A' forming part of the Income tax return (APB - 2O & 21). Hence the deductions u/s 80IB & 80IC claimed by the appellant were duly appearing in the return of income which is available on the records of the department and were allowable to the appellant. Hence the finding of the Id. AO that the appel....
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....e original audit reports were to be filed only in case the return of the appellant was chosen for scrutiny. The proceedings u/s 154 are not scrutiny proceedings at all. In fact the appellant had filed application for rectification of intimation u/s 143 (1) and for allowing deductions under Chapter VI-A which had been denied to the appellant on the ground that the return was filed late (due to system software error) while there was no delay in filing the return of income. As such the admissibility of deductions under Chapter VI-A were not in dispute provided the return was filed in time. Hence while filing application u/s 154 of the Act the appellant was not required to file the audit reports along with the application as the same were also not required to be filed along with return of income filed electronically. Therefore the ld AO has grossly erred in giving a finding that no audit report u/s 44AB & in Form 10CCB was filed along with the application and the assessee has failed to substantiate the claim of deduction u/s 80IB & 80IC ignoring the Circular issued by the CBDT and the provisions contained in the Act. The contention of the Id. AO is factually incorrect....
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....e due date. However, one should get the Tax Audit Report from his CA before the due date of submitting the ROI and fill the relevant columns of the ROI based on such reports. The relevant portion of clauses (i) and (ii) of para 6 of the Circular 5 of 2007 is extracted as under: "The report of audit under section 44AB is not to be attached with the return. It should not be furnished separately also before or after the due date. However, an assessee should get the report of audit from an accountant under said section before the due date of the furnishing of the return and should fill out the relevant columns of these forms on the basis of such report. The assessee should retain the report with himself. It may be furnished in original during the assessment proceedings. No penalty under section 271B shall be initiated or levied for not furnishing the tax audit report on or before the due date. However, if the audit report has not been obtained before the due date, provisions of section 271B shall be attracted. (ii) These returns are not to be accompanied with any other document including any statutory form or report of audit (other than the report under section 92E) w....