Requirement of filing audit report alongwith return of income is procedural in nature and audit report filed at the assessment stage shall be construed as sufficient compliance of the same for claiming deduction u/s 80IB.
Issue- The first ground is against allowing the claim of assessee u/s.80IB amounting to Rs.6,95,585/-. The assessee has claimed deduction u/s.80IB at Rs.6,95,585/- for claiming of deduction and audit report was not filed alongwith return. The A.O. gave reasonable opportunity of being heard on this issue which was availed by the assessee but the A.O. held that to the fact that the assessee had not submitted the required certificate from the Chartered Accountant alongwith return of income which is mandatory, the assesse is not entitled to the deduction u/s.80IB. Reliance is placed on the appeal admitted in Apex Court on the issue against the order of the Hon’ble High Court of M.P. in case of CIT vs. Panama Chemicals Works 250 ITR 661. In view of the above finding, the A.O. had not allowed deduction u/s. 80IB of Rs.6,95,585/-.