DINESH MAHESHWARI, ARUN BHANSALI, JJ. - (1.) This appeal by the revenue under Section 260-A of the Income Tax Act, 1961 ['the Act'] is directed against the judgment and order dated 15.06.2007 as passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ['the Tribunal'] in ITA No.596/JDPR/2006 in relation to the assessment proceedings concerning the respondent-assessee for the assessment year 2003-04. The question involved in this appeal has been indicated in the order of admission dated 10.01.2008 that may be noticed as under:- "Heard learned counsel for the appellant and perused the impugned order. Learned Tribunal has passed the impugned order relying upon one judgment of the Calcutta High Court, and another judgment of Punjab and Haryana High Court, and has held, that though, the Audit Report in Form No.10CCAC was not originally filed along with the return of income but was duly filed during the assessment proceedings, therefore, the assessee is entitled to deduction under Section 80HHC, to the tune of Rs.37,08,019.97. It is contended by the learned counsel for the appellant, that there is no decision on this point, either from this Court, or from the Hon'ble Supreme Court. In our view, on the basis of the language of Section 80HHC (4), the requirement is of filing of the report in the prescribed form "along with the return of income". The question thus is, as to whether the expression "along with the return of income" can be interpreted to be permitting filing of such report even during assessment proceedings? Since, the appeal involved above the substantial question of law, requiring the detailed hearing, and decision, by this Court, the appeal is admitted. Issue notice."
(2.) The relevant background aspects of the matter could be noticed in the following: In its return for the assessment year 2003-04, the respondent-assessee claimed deduction under Section 80HHC of the Act to the tune of Rs.39,86,538/-.
(3.) However, a copy of the audit report in Form No.10CCAC was not filed alongwith the return. During the course of assessment proceedings, the assessee filed one letter dated 21.11.2005 alongwith a plain unsigned paper carrying the computation for such deduction of Rs.39,86,538/-. Further, during the proceedings, the authorsed representative of the assessee submitted, alongwith his letter dated 19.12.2005, the report in the prescribed Form No.10CCAC dated 23.05.2003 claiming deduction under Section 80HHC at Rs.37,08,019.97. The Assessing Officer ['the AO'] declined to allow the deduction as claimed by the assessee under Section 80HHC of the Act while holding that the requirement of furnishing the audit report in Form No.10CCAC alongwith the return was a mandatory one and, for having failed to fulfill this requirement, the assessee was not entitled to the claimed deduction. The AO, inter alia, observed and held as under:- "I have considered the submission of the assessee and the facts of the case. The form No.10 CCAC as one of annexures does not find a place in the list of the documents attached with the Return of Income. The assessee company has filed the certificate only during assessment proceeding with the plea that it can be filed anytime before the assessment. As per the provisions of the section 80 HHC, it is mandatory to file the CA's certificate in the prescribed form 10CCAC along with the return of income to claim the deduction " " ..There fore in view of the detailed discussion I hold that the assessee company is not eligible for any deduction u/s 80 HHC since it has failed to fulfill the requirement of filing the form 10 CCAC alongwith the return of income. Therefore, the entire deduction u/s 80 HHC as claimed by the assessee in the return of income is disallowed." ;