2021 (3) TMI 158 - AT - Income Tax

Deduction u/s. 80IA - Denial of deduction as assessee failed to comply to the provision of sec. 80IA(7) - assessee not filed Form 10CCB along with the original return - CIT-A allowed deduction - HELD THAT - assessee had very well raised its sec. 80IA deduction claim with original return filed u/s. 139(1) followed by its revised return along with form 10 CCB which was processed u/s. 143(1) of the Act disallowing the above relief. This clinching fact has gone unrebutted from department side. Coupled with this, we also wish to reiterate here that sec. 80 IA r.w.s. 80IA(7) expressly provides for the impugned relief. We therefore quote hon'ble apex court's landmark decision in KV Pillai vs. CIT 1966 (10) TMI 35 - SUPREME COURT to express our complete agreement with the CIT(A)'s detailed discussion treating the assessee eligible for the impugned relief. Revenues sole substantive grievance to this effect fails therefore. - Decided against revenue.

Summary

Issues:
1. Allowance of deduction u/s. 80IA of the Income Tax Act, 1961.
2. Compliance with provisions of sec. 80IA(7) of the Act.
3. Violation of departmental intention on processing return of income electronically by CPC.

Issue 1 - Allowance of Deduction u/s. 80IA:
The appeal concerned the allowance of deduction u/s. 80IA of the Income Tax Act, 1961. The appellant filed a return for A.Y. 2016-17, initially claiming a deduction of ?19,02,51,433 under sec. 80IA. Subsequently, a revised return was filed, reducing the deduction to ?19,18,68,986. The AO disallowed the revised claim, leading to a grievance petition by the appellant. The CIT(A) held that the appellant was entitled to the deduction u/s. 80IA, citing judicial precedents and the provisions of sec. 80A(5) and 80AC. The ITAT upheld the CIT(A)'s decision, emphasizing that the appellant fulfilled all conditions for the deduction and dismissed the Revenue's appeal.

Issue 2 - Compliance with provisions of sec. 80IA(7) of the Act:
The Revenue contended that the CIT(A) erred in treating the assessee as eligible for sec. 80IA relief despite not filing Form 10CCB with the original return. However, the authorized representative highlighted that the assessee had initially claimed the sec. 80IA deduction with the original return and later submitted Form 10CCB with the revised return. The ITAT agreed with the CIT(A)'s detailed analysis, citing the provisions of sec. 80IA r.w.s. 80IA(7) and a Supreme Court decision. The ITAT dismissed the Revenue's appeal, confirming the eligibility of the assessee for the deduction u/s. 80IA.

Issue 3 - Violation of departmental intention on processing return of income electronically by CPC:
The Revenue raised concerns about the CIT(A)'s order violating the department's intention on electronically processing returns by CPC. However, the ITAT did not provide a specific analysis or ruling on this issue in the judgment.

In conclusion, the ITAT upheld the CIT(A)'s decision to allow the deduction u/s. 80IA for the appellant, emphasizing compliance with statutory provisions and judicial precedents. The ITAT dismissed the Revenue's appeal, affirming the eligibility of the assessee for the claimed deduction.