Case Law Details
Harbauer (India) Pvt. Ltd Vs ADIT (ITAT Kolkata)
ITAT Kolkata held that denial of deduction under section 80IA of the Income Tax Act on the basis of vague and ambiguous reasons is unjustified. It is settled law that when assessee is entitled for deduction the same should not be disallowed merely because of any bona fide mistake or error.
Facts- The assessee has contested the action of the CIT(A) in upholding the disallowance made by the ld. ADIT-CPC in respect of deduction claimed 80IA of the Act of Rs.40,19,494/-.
Notably, the claim of the assessee u/s 80IA has been denied on vague averments pointing out that “in Schedule VI-A under Part-C deduction in respect of certain incomes, in Sl No.2.e deduction is claimed under section 80IA/Form 10CCB or Form 10 CCB has not been e-filed within the due date”.
Conclusion- It is neither the case of the Assessing Officer nor of the CIT(A) that the assessee is not entitled to claim deduction u/s 80IA of the Act. The CPC has denied the claim only on the basis of vague and ambiguous reasons. It has been held time and again by the courts of law that the Income Tax Authorities must charge the legitimate taxes from the taxpayers. If an assessee is entitled to certain deductions under the provisions of the Income Tax Act, the same should not be disallowed, merely because of any bona fide mistake or error on the part of the taxpayer, rather, the Income Tax Authorities should assist the concerned assessees in filing their correct returns of income.
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