Commissioner of Income Tax vs G.M. Knitting Industries (P.) Ltd. and Others

It would be suffice to reproduce paragraph 2 of the impugned order whereby action of the Income-tax Appellate Tribunal was held to be justified in allowing the additional depreciation as claimed by the Respondent-Assessee herein:

"Additional depreciation is denied to the Assessee on the ground that the Assessee has failed to furnish form 3AA along with the return of income. Admittedly, form 3AA was submitted during the course of assessment proceedings and it is not in dispute that the Assessee is entitled to the additional depreciation. In these circumstances, in the light of the judgment of this court in the case of Commissioner of Income Tax Vs. Shivanand Electronics, (1994) 119 CTR 94 : (1994) 209 ITR 63 , we see no merit in this appeal. The appeal is, accordingly, dismissed with no order as to costs."

We concur with the aforesaid view of the High Court and hold that even if form 3AA was not filed along with return of income but the same was filed during the assessment proceedings and before the final order of the assessment was made that would amount to sufficient compliance. These appeals are, accordingly, dismissed.