MANI OMEGA GRANITES PVT LTD.,CHENNAI vs. ITO, CHENNAI

This is an appeal filed by the assessee against the Order of the Commissioner of Income Tax (Appeals)-8 , Chennai, in dated 31.08.2015 for the AY 2010-11.

Mr. G.G.Prabhakaran, represented on behalf of the Assessee and Mr.Clement Ramesh Kumar represented on behalf of the Revenue.

The ld.AR submitted that Grounds Nos.2 to 4, the assessee has challenged the action of ld.CIT(A) in confirming the action of the Assessing Officer in denying benefit of deduction u/s.10B of the Act to the assessee. It was a further submission that Grounds Nos.5 to 7 in respect of disallowance of claim of bad debt amounting to Rs.10,20,000/-. Ld.AR submitted that assessee did not wish to press Ground Nos.5 to 7 in respect of bad debt and the ld.AR has also made endorsements to this effect. Consequently, Grounds Nos.5 to 7 stand dismissed as not pressed.

In respect of Grounds Nos.2 to 4, it was submitted by ld.AR that assessee’s claim for deduction u/s.10B of the Act had been denied by the Assessing Officer on ground that the return filed by the assessee was not return u/s.139(1) of the Act in so far as the return had been filed on 02.12.2010. It was a submission that the assessee had approached the CBDT and CBDT had vide order u/s.119(2)(b) of the Act dated 03.12.2018 in F.No.197/31/2016- ITA-1 condoned the delay in filing of the return for the assessment year 2010-11 and had authorized the jurisdiction income tax authorities to admit the return of income for the assessment year 2010-11 filed on 02.12.2010 as a return filed by the due date u/s.139(1) of the Act. Ld.AR drew our attention to page-28 of the paper book wherein the said order of the CBDT was enclosed. It was a prayer that the CBDT having condoned the delay and return filed by the assessee having been treated as filed u/s.139(1) of the Act, the assessee may be granted the claim of deduction u/s.10B of the Act.

In reply, the ld.DR submitted that he has no objection, if the issue of claim u/s.10B of the Act is restored to the file of Assessing Officer for re-adjudication on merits.

We have heard the rival contentions and perused the material available on record. A perusal of the order passed by the CBDT shows that the CBDT has condoned the delay in filing of the return and has treated the return filed by the assessee for the assessment year 2010-11 filed on 02.12.2010 as a return filed by the due date u/s.139(1) of the Act. The CBDT has specifically held that the issue of the deduction in respect of the return is allowable is to be considered on merits by the Assessing Officer. This being so, the issue in this appeal in respect of claim of deduction u/s.10B of the Act is restored to the file of Assessing Officer for adjudication on merits.

In the result, the appeal of assessee is partly allowed for statistical purposes.