2023 (2) TMI 516 - AT - Income Tax

Deduction u/s 80IC - Claim denied as assessee had not filed Form 10CCB along with return of income - Whether audited report in Form 10CCB is mandatory to the filed along with return of income as per the provision of section 80IA(7) which is pre-condition of claiming the deduction - CIT-A allowed deduction - HELD THAT - CIT(A) while deciding the issue in favour of the assessee has given the finding that though there was delay in upholding Form 10CCB but the same was uploaded before the return of income was processed u/s 143(1) - For allowing the ground of assessee, CIT(A) had relied on the decision of Contimeters Electricals (P.) Ltd. 2008 (12) TMI 4 - HIGH COURT DELHI and other decisions. We find that Hon ble Apex Court in the case of CIT vs. G. M. Knitting Industries (P.) Ltd. 2015 (11) TMI 397 - SC ORDER has held even though Form 10CCB was not filed along with the return of income but when the same was filed before the final order of assessment was made, assessee was entitled to claim deduction. Before us, Revenue has not pointed to any contrary binding decision in its support nor has pointed to any fallacy in the findings of CIT(A). We, therefore, find no reason to interfere with the order of CIT(A) and thus the ground of Revenue is dismissed.

Summary

Issues:
1. Denial of deduction u/s 80IC of the Act by the Assessing Officer.
2. Appeal against the order of the Commissioner of Income Tax (Appeals)-4, New Delhi for Assessment Year 2017-18.

Issue 1: Denial of deduction u/s 80IC of the Act by the Assessing Officer:

The appeal filed by the Revenue challenged the order of the Commissioner of Income Tax (Appeals)-4, New Delhi, regarding the denial of deduction u/s 80IC of the Act for Assessment Year 2017-18. The Assessing Officer (AO) had denied the deduction claimed by the assessee due to the late filing of Form 10CCB, which is necessary for claiming the deduction u/s 80IC. The AO contended that since the form was uploaded after the return of income was filed, the denial was justified. However, the CIT(A) allowed the appeal of the assessee based on the argument that the form was uploaded before the return of income was processed u/s 143(1) of the Act.

Issue 1 Analysis:

During the proceedings, the Learned DR for the Revenue argued that the assessee failed to file Form 10CCB along with the return of income, as required for claiming deduction u/s 80IC. The form was uploaded after the return was filed, leading to the denial of the deduction by the AO. On the contrary, the Learned AR supported the CIT(A)'s decision, citing the Supreme Court's ruling in CIT vs. G. M. Knitting Industries (P.) Ltd., which stated that if Form 10CCB is filed before the assessment order is passed, the deduction claim cannot be denied.

The Tribunal noted that the core issue revolved around the timing of the Form 10CCB submission. While the AO's basis for denial was the delayed filing of the form, the CIT(A) justified the allowance of the deduction by emphasizing that the form was uploaded before the processing of the return of income u/s 143(1) of the Act. The CIT(A) relied on the decision of the Hon'ble Delhi High Court in CIT vs. Contimeters Electricals (P.) Ltd. and other cases to support the assessee's claim. Additionally, the Tribunal referred to the Supreme Court's decision in CIT vs. G. M. Knitting Industries (P.) Ltd., which upheld that timely filing before the final assessment order entitles the assessee to claim the deduction.

Given the lack of contradictory binding decisions or flaws in the CIT(A)'s findings presented by the Revenue, the Tribunal concluded that there was no valid reason to interfere with the CIT(A)'s order. Consequently, the Tribunal dismissed the Revenue's appeal, affirming the allowance of the deduction u/s 80IC of the Act to the assessee for Assessment Year 2017-18.

Issue 2: Appeal against the order of the Commissioner of Income Tax (Appeals)-4, New Delhi for Assessment Year 2017-18:

The Revenue's appeal against the order of the Commissioner of Income Tax (Appeals)-4, New Delhi, for Assessment Year 2017-18 was dismissed by the Tribunal. The grounds raised by the Revenue challenging the deletion of the disallowance of deduction u/s 80IC were rejected based on the timing of the submission of Form 10CCB and the legal precedents cited during the proceedings.