2022 (12) TMI 1087 - AT - Income Tax

Deduction u/s 80IA - deduction denied on non-filing of Form 10CCB along with the return of income - HELD THAT' - As assessee filed the audit report in Form 10CCB for claiming deduction under section 80IA of the Act on 13.11.2017. The processing of return under section 143(1) of the Act was done by the CPC, Bengaluru and issued intimation dated 16.03.2019, which is much after the filing of audit report. This being the case, this issue is squarely covered by the decision of AKS Alloys (P.) Ltd. 2011 (12) TMI 39 - MADRAS HIGH COURT which was duly affirmed by CIT v. G.M. Knitting Industries (P.) Ltd. 2015 (11) TMI 397 - SC ORDER as held that even though necessary certificate in Form 10CCB has to be filed along with the return of income, but, even if the same was filed before the final order of assessment was made, the assessee is entitled to claim deduction under section 80IB of the Act. Thus we are of the considered opinion that once the assessee has filed an audit report in Form 10CCB on 13.11.2017 and processing of return under section 143(1) was done by the CPC, Bengaluru on 16.03.2019, which is an event much after, the assessee is fully entitled to claim deduction under section 80IA of the Act. Accordingly, we set aside the orders of authorities below on this issue and direct the Assessing Officer to allow the claim of deduction under section 80IA of the Act. Thus, the ground raised by the assessee is allowed.

Summary

Issues:
1. Dismissal of appeal due to mistake in appellate order.
2. Disallowance of deduction under section 80IA for non-filing of Form 10CCB.

Issue 1: Dismissal of Appeal
In the first issue, the Appellate Tribunal addressed the dismissal of the appeal filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) dated 31.08.2020. The ld. CIT(A) had passed an appellate order under section 250 of the Income Tax Act, 1961, which had not been digitally signed. Subsequently, the mistake was rectified by the ld. CIT(A) under section 154 of the Act. As the appeal was filed against the initial order that had the mistake, it was considered infructuous and liable to be dismissed. Therefore, the appeal filed by the assessee was dismissed.

Issue 2: Disallowance of Deduction under Section 80IA
The second issue revolved around the disallowance of a deduction under section 80IA for non-filing of Form 10CCB. The assessee had filed the return of income for the assessment year 2017-18, but the CPC, Bengaluru disallowed the claim of deduction under section 80IA amounting to a specific sum due to non-filing of Form 10CCB along with the return of income. The ld. CIT(A) confirmed this disallowance, stating that the claim was incorrect as the form was not filed within the due date. The Appellate Tribunal, after considering the submissions from both sides, observed that the audit report in Form 10CCB was filed before the final assessment order was made. Citing relevant case law, the Tribunal held that the assessee was entitled to claim the deduction under section 80IA despite the timing of filing the necessary certificate. Consequently, the Tribunal set aside the orders of the authorities below and directed the Assessing Officer to allow the claim of deduction under section 80IA. As a result, the appeal in I.T.A. No. 883/Chny/2020 was dismissed, while I.T.A. No. 865/Chny/2020 was allowed.

This detailed analysis of the legal judgment provides a comprehensive overview of the issues involved and the Tribunal's decisions regarding each issue.