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TMI Blog2024 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has not filed the relevant audit report in Form 10CCB for claiming deduction u/s 80IA and 80IAB of the Act. In fact, the assessee has promptly filed form 10CCB on or before the due date for filing return of income in respect of deduction claimed u/s 80IA of the Act. But, could not file Form 10CCB in respect of deduction claimed u/s 80IAB of the Act, and the reasons given by the appellant for not filing said form, there is some technical glitches in the IT Portal. In our considered view, it is a fact that in a time, there are lot of technical glitches in the IT Portal for filing return of income or any other document which has been reported to the concerned authorities by the taxpayers. Going by the conduct of the assessee in fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to A.Y.2021-22. 2. The brief facts of the case are that the appellant company filed its return of income for the A.Y 2021-22 on 11/01/2022 on or before the extended due date of filing return of income on 15/02/2022, declaring total income of Rs. 20,17,63,290/-. The appellant company in its return of income claimed deduction u/s 80IA of the I.T. Act, 1961 for the profits earned by it out of power generation from its solar power plant and filed the audit report in Form-10CCB as required under section 80IA of the Act,. It has also claimed deduction u/s 80-IAB of the I.T. Act, 1961 for the profits earned by it out of the business of developer of special economic zone. However, it did not file the audit report in Form-10CCB as required u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appellant was unable to file 2nd Form-10CCB due to technical glitches in I.T. Portal and the same has been informed to the CPC on 22/06/2022. Thereafter, the appellant has filed 2nd Form-10CCB on 25/06/2022 which was available before the Assessing Officer when he passed order u/s 143(1) of the Act. Since filing of the audit report is directory in nature but not mandatory, the Assessing Officer should have considered the audit report filed by the assessee even though beyond the due date specified under the Act, but before the Assessing Officer passed assessment order u/s 143(1) of the Act,. Therefore, he submitted that the additions made by the Assessing Officer towards disallowance of deduction claimed u/s 80IAB should be deleted. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because of this, the appellant could not upload 2nd Form-10CCB. To support his argument, the appellant referred a grievance letter addressed to the Assessing Officer, CPC, Bengaluru on 22/06/2022. The appellant further took support from certain judicial precedents including the decision of the Hon'ble Madras High Court in the case of CIT vs. Arunachalam reported in (1994) 208 ITR 481 and the decision of the Hon'ble Delhi High Court in the case of CIT v. Contimeters Electricals (P.) Ltd (2009) 317 ITR 249. 6. We find that the Hon'ble Madras High Court held that filing of audit report is directory in nature and if such audit report is filed on or before the Assessing Officer passed the assessment order u/s 143(1) or u/s 143(3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 143(1) of the Act. In our considered view, as per ratio laid down by various High Courts including the Hon'ble Madras High Court in the case of CIT vs. Arunachalam (Supra), it was held that filing of audit report is directory in nature but not mandatory and further if such audit report is filed on or before the Assessing Officer passed the assessment order, then the same needs to be considered for allowing deduction or exemption under the provisions of the Act. Since, the appellant has filed the audit report in Form 10CCB before the Assessing Officer passed order u/s 143(1) of the Act, in our considered view, the claim by the assessee u/s 80IAB of the Act needs to be allowed. Thus, we set aside the order of the learned CIT (A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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