Section 80J Deduction Denied as Audit Report Was Never Filed: Bombay HC

CIT Vs Shivanand Electronics (Bombay High Court) The Bombay High Court considered a reference under Section 256(1) of the Income-tax Act, 1961, concerning whether non-compliance with the condition of filing an audit report was fatal to an assessee’s claim for deduction under Section 80J(6A) of the Act. The assessee, a registered partnership firm engaged in the manufacture of electronics and electrical equipment, had claimed deductions under Section 80J for Assessment Years 1976-77 and 1977-78. These claims were initially allowed by the Income-tax Officer. However, the Commissioner of Inc...