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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 ..... " 2. Succinct facts are that assessee before us is a private limited company. The assessee company engaged in the business of dealing in Water purification plant, trading in textiles goods. The assessee company has engaged in infrastructure development. The assessee company had filed his return of income for assessment year (A.Y.) 2013-14, belatedly on 29.03.2014, with claiming deduction under section 80IA of the Act of Rs. 13,09,512/-. However, return of income was to be submitted on or before the due date of filing of audited return of income given by section 139(1) of the Act i.e. 31.10.2013 (extended date). During assessment proceedings, the assessee was requested to furnish the explanation, why the claim of deduction under section 80IA of the Act should not be disallowed due to filing of return of income after due date. 3. In response, the assessee 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 retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngla, ld.Departmental Representative (DR) for the Revenue submitted that since the assessee has not filed the return of income before the due date of filing the return of income under section 139(1) of the Act, therefore, deduction under section 80IA of the Act should not be allowed to the assessee company. Since, the assessee-company has not filed the return of income within the due date prescribed under section 139(1) of the Act, therefore deduction under section 80IA of the Act should not be allowed and the order of the Assessing Officer may be upheld. 8. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials 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 Rs. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court while interpretating the deductions, in the caseof Collector of Central Excise vs. Parle Exports (P)Ltd., (1989) 1 SCC 345, held as follows: "Do not extend or/widen the ambit at the stage of applicability. But once that hurdle is crossed, construe it liberally". 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 section 80IA of the Act. In view of the above discussion, the claim of the assessee cannot be denied on technicalities when the assessee is legally otherwise entitled for deduction. 10. 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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he orders of the lower authorities, and other material available on record, including the case-law relied upon by the parties. It is an undisputed fact that the assessee in the present case has filed the audit report in Form lOCCB during the course of reassessment proceedings. The issue that arises for consideration is whether the Assessing Officer was justified in disallowing the assessee's claim for deduction under S. 80IB on the ground that the audit report in Form 10CCB was not filed along with the return of income; or whether the CIT(A) was correct in proceeding on the basis of Form 10CCB filed during the course of reassessment proceedings and directing the Assessing Officer to allow the claim of the assessee for deduction under S. 80IB of the Act. It is settled position 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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