Case Law Details
Sharp Designers and Engineers India Pvt. Ltd. Vs ACIT (ITAT Pune)
Core issue relates to the allowability of deduction under section 80IA(4) of the Act through filing of revised return of income u/s 132(5) of the Act. The present litigation arose in view of the stipulation for validly claiming of said deduction if any only through filing of return u/s 139(1) of the Act. The said condition was provided in section 80AC of the Act. On perusal of the above submissions of Ld. AR, we find the Chennai Bench of the Tribunal decided the issue in favour of the assessee on the facts similar to that of the assessee, i.e. involving the provisions of section 139(1) of the Act. This decision relied on the logic developed by the Pune Tribunal in the case of Anand Shelters (supra). Similar liberal interpretation of section 80AC of the Act is affirmed by the Tribunal of Allahabad Bench in the case of Parmeshwar Cold Storage Pvt. Ltd. Vs. ASCIT (supra). All these decisions are pronounced on the factual matrix of filing return of income u/s 139(4) of the Act and in the absence of return filed u/s 139(1) of the Act. On examining the facts of the present case and its facts, we find the Assessee’s case, with both original and revised returns filed in time, is placed in a better position. Therefore, in our opinion the claim of the Assessee’s claim of deduction u/s 80IA of the Act is allowable despite the provisions of section 80AC of the Act due to the judgmental laws in favour of their liberal interpretation. Therefore, the ground raised by the assessee should be allowed.
FULL TEXT OF THE ITAT JUDGMENT
There are 3 appeals under consideration. ITA No. 2263/PUN/2014 is filed by the assessee against the order of CIT(A)-V, Pune, dated 12-09-2014. ITA No. 2283/PUN/2014 and ITA No.1262/PUN/2015 are filed by the Revenue against the orders of CIT(A)-V, Pune and CIT(A)-6, Pune, dated 12-09-2014 and 15-06-2015 respectively.
2. In all these 3 appeals, the issue of allowability of (1) the deduction u/s.80IA of the Act claimed through filing of the revised return of income, (2) the correctness of the disallowance made by the AO u/s.40A(2)(b) of the Act and (3) the correctness of the disallowance made u/s.14A of the Act r.w. Rule 8D(2) of the IT Rules, are involved. Considering the commonality of the issues, we proceed to adjudicate all the grounds in this composite order.
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