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TMI Blog2021 (8) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... e the payment of self- assessment tax We note that essential documents, such as, audited accounts, the tax audit report along with report in Form No. 3CCB for claiming of deduction under section 80IA of the Act were available before the assessing officer. Audited accounts contain the net profit earned by the assessee. Tax audit report contains the information relating to compliance of income tax and Form No. 3CCB contains the information for claiming of deduction under section 80IA of the Act. Therefore, to examine the genuineness of claim of deduction under section 80IA the relevant details and documents were available before the assessing officer. Hence, we note that assessee has made substantial compliance. We note that assessee company was facing genuine difficulty, as the assessee company was unable to make the payment of self- assessment tax. Since the assessee has made substantial compliance to claim the deduction under section 80IA of the Act. There are no findings of the assessing officer that assessee is not eligible to claim deduction under section 80IA of the Act. We noticed that there is sufficient compliance with the main requirements to claim the deduction under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had filed a written submission along with supporting documents. The important part of written submission is reproduced below: ............... I have to state that my client had already filed tax audit report along with report in form no. 10CCB for claim of deduction of u/s 801A of the Act. It is further submitted that the return of income was not filed as the payment of self-assessment tax could not be made due to financial stringency. It is also submitted that since the copy of audit report and form No. 10CCB was filed in time, the substantive part of compliance was readymade. During the assessment stage it was also argued by the assessee that provisions of section 80AC of the Act is directory and not mandatory, as held in the case of ACIT V/s. V.N. Devados (ITAT Chennai Bench- A ) (ITA No. 1219 to 1223/Mad./2012), and it was also held that, if an attempt is made in good faith to perform the statutory requirements, even if it does not precisely meet the terms of statutory requirements, the performs is till be considered complete, if the essential purpose is accomplished. In the assessee`s case, the tax audit report was filed in time and, therefore, the major statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls brought on record. We note that solitary grievance of the assessee is against the disallowance of claim of deduction under section 80IA of the Act for ₹ 13,09,512/-. The assessing officer noted that assessee has claimed deduction u/s 80IA of the Act but has filed the return of income on 29.03.2014 i.e. after the due date i.e. 31.10.2013 (extended date) of filing of audited return of income u/s 139(1), had lapsed. The Assessing Officer held that since the assessee had filed the return of income after the expiry of 5 months of the due date of filing of return of income u/s 139(1) of the Act, hence the deduction claimed u/s 80IA of the Act of ₹ 13,09,512/- is not allowed. Learned Counsel submitted before us that assessee had filed the audited accounts and also the tax audit report along with report in Form No. 3CCB for claim of deduction u/s 80IA of the Act before the due date i.e. 30.09.2013 and therefore, the substantive part of compliance was made. The ld Counsel pointed out that assessee was unable to make the payment of self- assessment tax of ₹ 1,50,21,672/- on account of financial problems and therefore, the return of income would not be filed within the st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We note that Coordinate Bench of Hyderabad in the case of Sri S. Venkataiah, in ITA No.984/Hyd/2011, order dated 31.03.2012, has noted that there was a delay of 74 days in filing the return of income which was beyond the control of assessee. This was also confirmed by the statutory auditor vide his letter dated 20.3.2011. The Tribunal held that there was a reasonable cause for filing the return of income belatedly and this is beyond the control of the assessee. When the substantial question of justice involved technicalities should be ignored. Hence, the claim of the assessee cannot be denied on technicalities when the assessee is legally otherwise entitled for deduction. The findings of the Coordinate Bench ar reproduced below: 13. We have heard both the parties and perused the material on record. In this case admittedly, the assessee filed the return of income on 23.12.2008. The due date for filing the return of income u/s 139(1) of the Act for the assessment year under consideration in the case of the assessee is 31.10.2008. As such the return filed by the assessee is belated. In this the assessee claimed deduction u/s 80IC of the Act which was disallowed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of law, as consistently held by various Benches of this Tribunal and as held in various decisions referred to by the CIT(A) in the impugned order, that though filing of audit report in Form 10CCB is mandatory and prerequisite for deduction under S. 80IB, non-filing of the same along with the return of income is only a curable defect, and assessee's claim for deduction has to be considered on its merits as and when the defect is cured by filing Form 10CCB. We are fortified in this behalf by the decision of the jurisdictional High Court in the case of Hemsons Industries (Supra), relied upon by the learned counsel for the assessee. It is contended by the Learned Departmental Representative that the assessee's claim for deduction under S. 80IB can be entertained and examined on merits, when the audit report is filed before the completion of assessment, which has not been done in the present case, since the audit report was filed only during the course of reassessment proceedings initiated by the Assessing Officer, which cannot end up giving additional deductions/benefits to the assessee. We do not find merit even in this contention of the learned Departmental Representati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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