Narain Dass, Surat V. Income Tax Officer, Ward-1(1)(2), Surat, Surat

ITA 205/SRT/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6575 (ITAT-SURAT)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 09-06-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 22-02-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A VARIOUS DECISIONS OF HONBLE JURISDICTIONAL
• Section: 148; 143(3); 201; 274; 80IC; 80IC

Judgement Text

आयकर अपीलीय अिधकरण, सुरत Ɋायपीठ, सुरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT “SMC” BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER आ.अ.सं./ITA No.205/SRT/2024 (AY 2012-13) (Hearing in Physical Court) Narain Dass 45-A, Sarjan Society, Modi Bungalows, Nr. Parle Point, Surat-395007 [PAN No: AADPD 9121 G] Vs Income Tax Officer, Ward-1(1)(2) Room No.112, 1 st Floor, Aaykar Bhawan, Majura Gate, Surat-395001 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri Sapnesh R Sheth, CA राजˢ की ओर से /Revenue by Shri Vinod Kumar, Sr-DR अपील पंजीकरण/Appeal instituted on 23.02.2024 सुनवाई की तारीख/Date of hearing 10.06.2024 उद्घोषणा की तारीख/Date of pronouncement 10.06.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld. CIT(A)”] dated 06.02.2024 for assessment year 2012-13, which in turn arises out of assessment order passed by the Assessing Officer under section 143(3) r.w.s.147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 22.11.2018. The assessee has raised the following grounds of appeal:- “1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals), NFAC has erred in confirming the action of Assessing Office in reopening assessment by issuing notice u/s 148 of the I.T. Act,1961. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals), NFAC has erred in confirming the action of Assessing Office in making addition of Rs.21,90,404/- by disallowing deduction claimed u/s 80IC of the I. T. Act. ITA No.205/SRT/2024 (A.Y 12-13) Narain Dass 2 3. It is therefore prayed that above addition made by Assessing Officer and confirmed by Commissioner of Income-tax (Appeals), NFAC may please be deleted. 4. Appellant craves leave to add, alter or delete any ground(s) either before or in the curse of hearing of the appeal.” 2. Rival submissions of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that he has raised only two grounds of appeals; first ground of appeal relates to validity of re-opening and second ground of appeal relates to disallowance of deduction under section 80IC of the Act. The Ld. AR of the assessee submits that though, the assessee has a good case on validity of reopening as well as on merit. In case, the assessee is allowed relief on merit, he would not press, first ground of appeal, regarding validity of reopening. 3. On merit of the disallowance under section 80IC, the Ld. AR of the assessee submits that initially while filing return of income, the assessee has claimed deduction of Rs.21,90,404/- under section 80IC of the Act. Assessment was completed under section 143(3) on 29.01.2015 in allowing such deduction. However, later on, the case of assessee was reopened on the ground that on perusal of assessment record, the Assessing Officer found for claiming deduction under section 80IC in respect of manufacturing activities by enterprising in certain Special category States, as per provision of under section 80IA(7), the deduction is admissible only, if audit report in Form- 10CCB is filed before due date of filing return of income. It was the view of the Assessing Officer that assessee has not filed such audit report with return of income. During the re-assessment, the assessee in its reply submitted that ITA No.205/SRT/2024 (A.Y 12-13) Narain Dass 3 during the course of original assessment proceedings, report in Form-10CCB was not found by Assessing Office. The assessee submitted report in Form- 10CCB, which was accepted and taken on record by Assessing Officer and he allowed the deduction under section 80IC of the Act. The same question was raised again, the assessee again furnished copy of Form-10CCB. The Assessing Officer despite furnishing report under-10 and 10CCB disallowed the deduction. The Ld. AR of the assessee submits that this issue is squarely covered in favour of assessee by a various decisions of Hon’ble jurisdictional High Court as well as by the decision of Hon’ble Apex Court. The ld AR for the assessee relied on the following decisions;  CIT vs. G.M. Knitting Industries (P.) Ltd. [2016] 71 taxmann.com 35 (SC)  CIT vs. Gujarat Oil & Allied Industries (1993) 109 CTR 272, (1993) 201 ITR 325 (Guj)  CIT vs. Mayur Foundation (2005) 194 CTR 197 (2005) 274 ITR 562 (Guj)  ITO vs. Vxl India Ltd. (2008) 219 CTR 242 (2009) 312 ITR 187 (Guj)  Zenith Processing Mills vs. CIT (1996) 134 CTER 288 (1996) 219 ITR 721(Guj) 4. The Ld.AR of the assessee submits that Hon’ble Apex Court in the case of CIT vs. G.M. Knitting Industries (P.) Ltd. [2016] 71 taxmann.com 35 (SC) held that even though certificate under Form-10CCB along with return of income has not been filed, but the same was filed before final assessment order was made, the assessee was entitled to claim deduction under section 10-IB of the Act. The provision for filing reporting in Form-10CCB for claiming deduction under section 80IC is peri meteria with the requirement of claim under section 80IC of the Act. ITA No.205/SRT/2024 (A.Y 12-13) Narain Dass 4 5. On the other hand, Ld. Sr-DR for the Revenue submits that filing of audit report in Form-10CCB, before due date of filing return of income is mandatory required as per Section 80A(7) of the Act. Thus, he fully supported the order of Assessing Officer as well as Ld.CIT(A) in confirming the action of Assessing Officer. 6. I have considered the submissions of both the parties and have gone through the orders of lower authorities carefully. In my opinion, there is very minor dispute on which the parties have lock their horn. It is an admitted positon that Form-10CCB was filed during original assessment as well as again filed during re-assessment proceedings for claiming deduction under section 80IC of the Act. I find that lower authorities have not disputed the nature of business activities or whether the industry of assessee situated in specified State. The only dispute is whether the assessee is eligible for such relief when audit report in Form-10CCB was filed during assessment as well as re- assessment proceedings or after filing return of income. I find that Hon’ble jurisdictional High Court in a series of decision as relied by Ld.AR of the assessee, which are noted above held that even the report in Form 10CCB is filed during assessment proceedings, it is sufficient compliance for claiming such relief. Therefore, respectfully following the decisions of Hon’ble jurisdictional High Court and the ratio of decision of Hon’ble Apex Court in the case of G.M. Knitting Industries (P.) Ltd (supra), the Assessing Officer is directed to delete the disallowance and allow full relief to the assessee. The second ground of assessee is allowed in above terms. Considering the fact that I have already allowed full relief to the assessee under section 80IC on ITA No.205/SRT/2024 (A.Y 12-13) Narain Dass 5 merit, therefore, adjudication on the issue of validity of reopening have become academic. 7. In the result, the appeal of the assessee is allowed. Order pronounced in open court on 10 th June, 2024. Sd/- (PAWAN SINGH) [Ɋाियक सद˟ JUDICIAL MEMBER] सूरत /Surat, Dated: 10/06/2024 Dkp. Out Sourcing Sr.P.S Copy to: 1. Appellant- 2. Respondent- 3. CIT(A)- 4. CIT 5. DR 6. Guard File True copy/ By order // True copy // Senior Private Secretary/Assistant Registrar, ITAT, Surat