2022 (10) TMI 80 - AT - Income Tax

Disallowing the claim of deduction u/s.80IA - Form No.10CCB has not been filed along with the original return of income within the due date of filing of return of income - HELD THAT - As the revised return of income filed by the assessee on 28.05.2018 and consequent processing of return by the Department by issuing intimation u/s.143(1) of the Act dated 25.03.2019, the impugned order, the assessee has revised the return validly and within the time available u/s.139(5) of the Act and has also accompanied by the audit report in Form no.10CCB of the Act. Hence, we are of the view that the authorities below have wrongly disallowed the claim of deduction. In the case of Shanthi Gears Ltd 2022 (3) TMI 960 - ITAT CHENNAI we allow the claim of assessee and direct the AO accordingly. Appeal filed by the assessee is allowed.

Summary

Issues:
- Time-barred appeal due to delay in filing
- Disallowance of deduction u/s.80IA for not filing Form No.10CCB with original return

Analysis:
1. Time-barred appeal due to delay in filing:
The appeal was filed 352 days after the order of the Commissioner of Income Tax (Appeals) was received, exceeding the prescribed time limit. The assessee attributed the delay to the Covid-19 pandemic and nationwide lockdown. Citing Supreme Court directions, the Appellate Tribunal condoned the delay and admitted the appeal for adjudication.

2. Disallowance of deduction u/s.80IA for not filing Form No.10CCB with original return:
The main issue in the appeal was the disallowance of the deduction u/s.80IA by the Assessing Officer due to the non-filing of Form No.10CCB along with the original return. The assessee initially filed the return without the audit report in Form No.10CCB but claimed the deduction u/s.80IA. Subsequently, a revised return was filed with the audit report, but the claim was again disallowed by the Department. The Tribunal referred to a Co-ordinate Bench decision in a similar case where it was held that if the original return was filed within the due date and the revised return rectifying any mistakes was filed within the prescribed time, the claim for deduction should be allowed. Relying on this precedent, the Tribunal allowed the claim of the assessee and directed the Assessing Officer accordingly.

In conclusion, the Appellate Tribunal allowed the appeal, setting aside the disallowance of the deduction u/s.80IA, based on the timely filing of the revised return with the required audit report. The judgment emphasized the importance of adhering to statutory timelines and fulfilling procedural requirements for claiming deductions under the Income Tax Act, 1961.