Law:

Section:

I. Section 44AB of the Income-tax Act, 1961 - Audit compulsory Filing audit report is procedural and directory in nature and same can be filed at appellate stage Filing of audit report it is procedural and directory in nature and the same can be filed at the appellate stage. II. Section 80-IA of the Income-tax Act, 1961 - Deductions - Profits and gains from infrastructure undertaking - Assessment years 2003-04 and 2004-05 Where assessee did not make claim in earlier years because of brought forward losses, Tribunal had rightly noted that assessee would be entitled to deduction up to assessment year prescribed under law and simply for reason that he had not made claim for earlier years, he could not be denied to claim made in subsequent years [In favour of assessee] The assessee-company was a manufacturer of empty hard gelatine Capsules. For the assessment years in question the respondent claimed deductions under section 80-IA. The case of the respondent was that it had undertaken expansion programme during the financial years 1995-96 and 1997-98. The expansion was defined as unit 2 which started commercial production in the year 1997-98. The DIC, Pithampur had granted the certificate indicating the increase in capacity from 750 to 2750 million units. A separate building was constructed for the unit 2. The deduction was claimed for the first time in the assessment year 2003-04. In the earlier years deduction could not be claimed due to inadequacy of profit. The Assessing Officer rejected the assessee's claim for deduction under section 80-IA. The Tribunal, however, allowed the assessee's claim. On appeal, the revenue contended that the Tribunal had committed an error in allowing the claim of the respondent under section 80-IA(2) without appreciating that such a claim was made for the first time in the subject year though the enhancement of purported unit had taken place earlier and that the view taken by the Tribunal was not correct since the audit report was not submitted before the Assessing Officer. Held that, the assessee did not make the claim in the earlier years because of the brought-forward losses. The Tribunal had rightly noted that the assessee would…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492