2019 (1) TMI 694 - AT - Income Tax

Entitled to claim deduction u/s 80IB (10) - whether Form No. 10CCB has to file along with return of income or can be filed during the course of assessment proceedings? - Held that - This issue has been decided by the coordinate bench of the Jaipur Tribunal in the case of Khetan Tiles Private Ltd. ( 2017 (8) TMI 607 - ITAT JAIPUR) by considering the decision of the Hon ble Supreme Court in the case of CIT Vs. G.M. Knitting Industries (P) Ltd. 2015 (11) TMI 397 - SUPREME COURT and has observed that even though necessary certificate in Form No. 10CCB along with return of income had not been filed, but same was filed before final order of the assessment was made, the assessee was entitled to claim deduction under section 80IB (10) of the Act. - Decided against revenue

Summary

Issues:
1. Whether Form No. 10CCB must be filed along with the return of income or can be filed during the course of assessment proceedings.

Analysis:
The appeal and cross objection were against the Commissioner of Income Tax (Appeals) order for the Assessment Year 2014-15. The assessee, a partnership firm in the construction business, filed its return claiming deduction under section 80IB (10) of the Income Tax Act, 1961. The Assessing Officer denied the claim as Form No. 10CCB was not filed along with the return. The assessee relied on a decision by the Jaipur Bench of the ITAT, arguing that Form No. 10CCB can be filed during assessment proceedings. The CIT(A) directed the Assessing Officer to allow the deduction under section 80IB (10), leading to the Revenue's appeal before the Tribunal.

The key issue was whether Form No. 10CCB had to be filed along with the return of income or could be filed during assessment proceedings. The Tribunal referred to the decision of the Jaipur Tribunal in the case of Khetan Tiles Private Ltd. and the Supreme Court's decision in CIT Vs. G.M. Knitting Industries. It was observed that substantial compliance was achieved by filing the audit report electronically during assessment proceedings. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's appeal.

The Tribunal found no infirmity in the CIT(A)'s decision, as it was based on the Jaipur Tribunal's decision supported by the Supreme Court's ruling. No contrary decision was presented, and the order was not modified or reversed by the High Court. Consequently, the appeal by the Revenue and the cross objection by the assessee were both dismissed, with the assessee's cross objection being deemed infructuous. The decision was pronounced on January 11, 2019.