CIT Vs Ramco Cements Limited (Madras High Court)
The Madras High Court dismissed the Revenue’s appeal and upheld the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] and the Income Tax Appellate Tribunal (ITAT), holding that, for the assessment year 2009-10, the requirement under Section 80IA(7) of the Income Tax Act to furnish an audit report along with the return of income was directory and not mandatory. The Court concluded that the statutory requirement stood satisfied if the audit report was furnished before the completion of the assessment proceedings.
The respondent-assessee, engaged in the business of manufacture and sale of cement, filed its return of income for the assessment year 2009-10 on September 28, 2009, declaring a total income of ₹1,58,55,60,958. After processing the return under Section 143(1), the Assessing Officer issued a notice under Section 143(2). During the assessment proceedings, the Assessing Officer sought the audit report of the Chartered Accountant required under Section 80IA in support of the assessee’s claim for deduction relating to its windmill undertaking, including details regarding the purchase of windmills, income derived therefrom, and expenditure incurred. The Assessing Officer ultimately disallowed the deduction claimed under Section 80IA on the ground that the audit report had not been furnished along with the return of income.
