DCIT, CHENNAI V. Live Connection & Software Private Limited, CHENNAI

ITA 823/CHNY/2014

• Counselvise Citation: 82321714 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2015
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 09-06-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 03-04-2014
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Assessee Lawyers: D ANAND
• Section: 10B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , . !' , # $ % [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.823/MDS/2014 / ASSESSMENT YEAR : 2006-07 THE DY. COMMISSIONER OF INCOME-TAX COMPANY CIRCLE II(4) CHENNAI VS. M/S LIVE CONNECTION & SOFTWARE PVT. LTD NO.34D, NU TECH ARCADE 1 AVENUE, ASHK NAGAR CHENNAI 600 083 [PAN AAACL 9460A] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : DR. B. NISCHAL, JCIT /RESPONDENT BY : SHRI D.ANAND, ADVOCATE / DATE OF HEARING : 09-06-2015 ! / DATE OF PRONOUNCEMENT : 19-06-2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-II, CHENN AI, DATED 29.11.2013 AND PERTAINS TO ASSESSMENT YEAR 2006-07 . 2. DR.B.NISCHAL, LD. DEPARTMENTAL REPRESENTATIVE SUBMI TTED THAT THE ASSESSEE FILED E-RETURN BEYOND THE PERIOD PRES CRIBED U/S 139(1) ITA NO.823/14 :- 2 -: OF THE ACT, THEREFORE, THE ASSESSING OFFICER DISALL OWED THE CLAIM OF THE ASSESSEE U/S 10B OF THE ACT. REFERRING TO FOURTH PROVISO TO SECTION 10B(1) OF THE ACT, THE LD. DR SUBMITTED THAT UNLE SS THE ASSESSEE FILED THE RETURN OF INCOME WITHIN THE TIME SPECIFIED U/S 139(1), THE ASSESSEE CANNOT CLAIM ANY DEDUCTION U/S 10B OF THE ACT. 3. ON THE CONTRARY, SHRI D. ANAND, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IN FACT FILED THE RETU RN OF INCOME WITHIN THE TIME LIMIT PROVIDED U/S 139(4) OF THE ACT. REFE RRING TO FORTH PROVISO TO SECTION 10B(1) OF THE ACT, THE LD. COUNSEL SUBMI TTED THAT THE SAME WAS INTRODUCED WITH EFFECT FROM 1.4.2006 BY FINANCE ACT, 2006. THEREFORE, THIS PROVISO IS APPLICABLE ONLY FROM THE ASSESSMENT YEAR 2007-08. THUS, THE RETURN FILED BY THE ASSESSEE W ITHIN THE PERIOD OF TIME LIMIT PRESCRIBED U/S 139(4) IS WELL WITHIN THE PROVISIONS OF THE ACT. 4. ON A QUERY FROM THE BENCH WHY THE ASSESSING OFFICER HAS NOT EXAMINED THE OTHER CONDITIONS FOR CLAIMING DEDU CTION U/S 10B, THE LD. COUNSEL SUBMITTED THAT THE ASSESSING OFFICER HA S ONLY EXAMINED THE TIME LIMIT FOR FILING THE RETURN OF INCOME AND HE H AS NO OBJECTION IF THE MATTER IS REMANDED TO THE ASSESSING OFFICER TO EXAM INE THE OTHER CONDITIONS FOR ALLOWING THE CLAIM U/S 10B OF THE A CT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. ADMI TTEDLY, THE FOURTH ITA NO.823/14 :- 3 -: PROVISO TO SECTION 10B WAS INTRODUCED BY FINANCE AC T, 2006 WITH EFFECT FROM 1.4.2006. THEREFORE, FOURTH PROVISO TO SECTIO N 10B(1) IS APPLICABLE FOR THE FINANCIAL YEAR 2006-07 RELEVANT TO ASSESSMENT YEAR 2007-08. THE YEAR UNDER CONSIDERATION IS FINANCIA L YEAR 2005-06 AND ASSESSMENT YEAR 2006-07. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT FOURTH PROVISO TO SECTION 1 0B IS NOT APPLICABLE FOR THE YEAR UNDER CONSIDERATION. THEREFORE, THE R ETURN FILED BY THE ASSESSEE WITHIN THE TIME PRESCRIBED U/S 139(4) IS A VALID RETURN AND HENCE, THE CLAIM MADE BY THE ASSESSEE FOR DEDUCTIO N U/S 10B HAS TO BE PROCESSED AS PER THE CONDITIONS PRESCRIBED U/S 10B OF THE ACT. 6. ADMITTEDLY, THE ASSESSING OFFICER HAS NOT EXAMINED THE OTHER ELIGIBILITY OF THE ASSESSEE FOR ALLOWING THE CLAIM U/S 10B. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER HAS TO EXAMINE THE CLAIM OF THE ASSESSEE FOR DEDUCTION U/S 10B TREATING THE RETURN FILED BY THE ASSESSEE U/S 139(4) OF TH E ACT AS A VALID RETURN. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHO RITIES ON THE ISSUE OF DEDUCTION U/S 10B IS REMANDED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL REEXAMINE THE ISSUE OF DEDUCTION U/S 10B IN ACCORDANCE WITH LAW AFTER GIVING A REASO NABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NO.823/14 :- 4 -: 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH OF JUNE, 2015, AT CHENNAI. SD/- SD/- ( . !' ) (A. MOHAN ALANKAMONY) # / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED: 19 TH JUNE, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF