2012 (1) TMI 423 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) directing AO to allow deduction u/s. 80IB for Assessment Year 2003-04 due to submission of audit report in Form No. 10CCB during reassessment proceedings.

Issue 1: Condonation of Delay

The appeal by revenue was delayed by 25 days, and the revenue provided reasons for the delay in filing. The Ld. Counsel for assessee conceded the delay, leading to the admission of the appeal by the tribunal.

Issue 2: Allowance of Deduction u/s. 80IB

The AO framed assessment u/s. 143(3) of the Act for the relevant assessment year, disallowing deduction u/s. 80IB due to non-submission of audit report in Form No. 10CCB. Subsequently, during reassessment proceedings, the audit report was filed, and the assessee claimed that this technical default should not hinder the allowance of deduction u/s. 80IB. The CIT(A) allowed the claim, considering the submission of the audit report during reassessment as sufficient compliance.

Key Points:
- The AO initially accepted the deduction u/s. 80IB without the audit report but later reopened the assessment due to the absence of the report.
- The CIT(A) held that submission of the audit report in Form No. 10CCB is directory, not mandatory, and allowed the deduction based on the submission during reassessment.
- The tribunal upheld the CIT(A)'s decision, stating that the assessee's submission during reassessment proceedings was to substantiate the original claim, not a fresh claim.

Conclusion:
The tribunal dismissed the appeal of the revenue, upholding the CIT(A)'s decision to allow the deduction u/s. 80IB based on the submission of the audit report during reassessment proceedings.