In 15 ITR-OL 729 (MP) the revenue audit party pointed certain deficiencies in the taxpayers computation as regard claim for deduction u/s 80-IA alleging failure to file audit report and proper unit wise accounts. In the consequence the case got reopened denying claim.
The assessee submitted the report before Commissioner (Appeals) to make good the deficiency as well as explained the computation of eligible unit profits.
In citing the previous law that the AO has the discretion to entertain the audit report even though the same has not been filed with the return but presented during the course of assessment proceedings the High Court went a step further and held that reassessment is similar to assessment so much so that it held that the basic purpose of section 148 of the Act is merely to empower the assessing authority with the machinery for assessment. Fundamentally, both assessment and reassessment need the same machinery. In other words, the provisions relating to regular assessments shall apply to assessments made pursuant to notice of reassessment. Once that is so, all the essential traits and requirements of procedure embodied for framing of regular assessments under the Act would also apply.
This case somehow provide a distant pointer or second advantage to the taxpayers to even submit claims that are left out in the return/revised return or original assessment after due diligence.