TaxTMI 
TaxTMI 
2022 (7) TMI 861
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.... and holiday resorts. 3. We first take up the appeal for AY 2007-08. During the relevant year, the assessee filed return of income on 31.3.2008 reporting a total income of Rs.8,17,38,600 u/s. 80IB(7) of the Income-tax Act, 1961 [the Act] in respect of income derived from hotel business. The return was processed u/s. 143(1) accepting the returned income returned. Further, notice u/s. 148 was issued for reopening the assessment u/s. 147 of the Act. 4. During the reassessment proceedings, the AO denied deduction u/s. 80IB(7) of the Act on the ground that the project approval was granted to the assessee by the Regional Director of Tourism, instead of Director General of Tourism, Delhi. 5. On appeal, the CIT(Appeals) took into consideration t....
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....e proviso to Sec.10A(1A) of the Act which is similar to the provisions of Sec.80AC of the Act. Sec.10A(1A) and the proviso thereto is as follows:- "(1A) Notwithstanding anything contained in sub-section (1), the deduction, in computing the total income of an undertaking, which begins to manufacture or produce articles or things or computer software during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2003, in any special economic zone, shall be,- (i) hundred per cent of profits and gains derived from the export of such articles or things or computer software for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the unde....
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....re was prescribed in section 234A also as per which, the assessee was liable to pay interest on the tax payable by him after reducing advance tax and TDS/TCS, if any, paid by him apart from some other reductions. The legal position is by now settled that charging of interest under various sections including u/s 234A was mandatory. When one of the consequences for not filing the return within the due date prescribed u/s 139(1) was mandatory then, other consequences on the same failure of the assessee, could not be directory, but the same was also mandatory. The provisions of the proviso to Section 10A(1A) is mandatory and not directory. 11. Another argument put forth before the Special Bench was that Sec.139(4) is a proviso to Sec.139(1) of....
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....d held as follows:- "10. The ratio is utterly inapplicable when the statute confers a benefit and imposes a condition for the enjoyment of the benefit. The dictum would not be applicable, particularly, since the embargo is couched in negative words. Had it been a case where the express prohibition as in the words quoted from Section 80AC were not there, an arguable case could have been made out. However, when the governing provision expressly mandates that no such deductions shall be allowed unless the assessee filed his returns of income "on or before the due dates specified under" Section 139 (1) of the Act, there is no question of referring to the extended period permitted under Section 139(4) of the Act to seek the benefit. Indeed, if....