2024 (6) TMI 651

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.... "1. In law and in the facts and circumstances of the appellant's case, the Hon' CIT(A) has erred in upholding the disallowance made aby the Ld. AO in disallowing the deduction u/s. 10AA. 2. In law and in the facts and circumstances of the appellant's case, the Ld. CIT(A) has erred in confirming the levy of interest u/s. 234(a), 234(b), 234(c), 234(d)." 3. The assessee company filed its return of income for Assessment Year (A.Y.) 2012-13 on 26.09.2012 declaring Nil income. The case was selected for scrutiny and order under Section 143(3) of the Income Tax Act, 1961 was passed accepting the returned income. The PCIT passed order under Section 263 of the Act on 22.03.2017 setting aside the order afresh after verification and deduction un....

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....2.2017 Reply to show cause notice was furnished Pgs. 12-13 20.12.2017 Assessment Order was passed by AO -- 7. The Ld. AR further submitted that Form 56F was obtained before filing the return of income but the same was not filed along with return of income. The Ld. AR further submitted that Form 56F was later filed before the PCIT during revisionary proceedings and, therefore, the Assessing Officer at this juncture cannot decide the matter only on the ground that the Audit Repot/Form 56F was not filed along with return of income as the same is belatedly filed and, therefore, deduction claimed under Section 10A of the Act was rejected. The Ld. AR submitted that the requirement of filing of Audit Report (Form 56F) is merely directory....

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....mandatory at a later stage as contemplated in proviso to Rule 12(2) of the Income Tax Rules, 1962. Upto 31.03.2013, audit report only under Section 44AB, 92E or 115JB were to be filed electronically. W.e.f. 01.04.2013, scope of relevant sections for Audit Report in the said proviso was explained by inserting few more Sections as noted/ mentioned in Section 10AA did not find place in those Sections. W.e.f. 01.04.2014, legislature inserted Section 10AA in the said proviso i.e. w.e.f. 01.04.2014, even audit report under Section 10AA is to be filed electronically. Thus, requirement of filing Audit Report under Section 10AA electronically along with return of income became mandatory w.e.f. 01.04.2014. The present Assessment Year in question is A....

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.... as the Tribunal's decision in case of Mahendra Kumar Damani vs. ACIT, the same has to be taken into cognisance and the CIT(A) has rightly dismissed the appeal. 10. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the decision quoted by the Hon'ble Apex Court in case of PCIT vs. Wipro (2022) 288 taxmann.com 491 though held that since the assessee did not file the Audit Report in Form No.56F, as required under law, the Assessing Officer was right in disallowing the deduction claimed under Section 10AA of the Act as it is a mandatory condition prescribed under Section 10AA(8) of the Act read with Section 10A(5) of the Act but in the present case the assessee before the PCI....