2024 (2) TMI 1108 - AT - Income Tax

Deduction u/s 80IA - copy of Form 10CCB was not e-filed separately within due date - mandatory v/s directory obligation - Against the same, the assessee filed revised return of income and on the same day, the assessee filed copy of Form 10CCB electronically, still, the claim was denied by CPC - HELD THAT - We find that this issue is squarely covered in assessee s favor by the decision of G.M. Knitting Industries P. Ltd 2015 (11) TMI 397 - SC ORDER as affirming the decision of AKS Alloys P. Ltd 2011 (12) TMI 39 - MADRAS HIGH COURT wherein it was held that when a relief is sought for under Section 80IB of the Act, there is no obligation on the part of the assessee to file return accompanied by the audit report, thereby, holding that the same is not mandatory. Therefore, it is clear that before the assessment is completed if such report is filed, no fault could be found against the assessee. Filing of audit report along with the return was not mandatory but directory and that if the audit report was filed at any time before the framing of the assessment, the requirement of the provisions of the Act should be held to have been met. See A.N. Arunachalam 1994 (1) TMI 65 - MADRAS HIGH COURT and in CIT v. Jayant Patel 1998 (9) TMI 6 - MADRAS HIGH COURT - Thus we direct Ld. AO to allow the impugned deduction u/s 80IA. Disallowance u/s 36(i)(va) for late payment of PF dues - HELD THAT - This seem to be double disallowance since this disallowance has already been offered by the assessee suo-moto in the computation of income. The AO is directed to verify the same and delete this disallowance, if the submissions of Ld. AR are found to be correct. This ground stand allowed for statistical purpose.

Summary

Issues Involved:
1. Assessee's claim of deduction u/s 80IA
2. Disallowance u/s 36(i)(va) for late payment of PF dues

On the issue of deduction u/s 80IA, the appeal by the assessee for Assessment Year (AY) 2017-18 arose from an order of the Commissioner of Income Tax (Appeals) regarding a rectification intimation issued by CPC Bangalore u/s 154. The grounds taken by the assessee included contentions regarding the jurisdiction of the Commissioner of Income Tax (Appeals) and the denial of deduction claimed u/s 80IA due to non-filing of Form 10CCB electronically. The appellant argued that the electronic filing of Form 10CCB along with the return of income was discretionary, not mandatory for claiming the deduction u/s 80IA. The Tribunal found in favor of the assessee based on judicial precedents, directing the AO to allow the deduction u/s 80IA.

Regarding late payment of PF dues, the issue of double disallowance was raised as the disallowed amount had already been offered by the assessee in the computation of income. The Tribunal directed the AO to verify and delete this disallowance if found to be correct, allowing the corresponding grounds for statistical purposes. The appeal was partly allowed, with the decision pronounced on 20th February, 2024.