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TMI Blog2024 (8) TMI 1506X X X X Extracts X X X X X X X X Extracts X X X X ..... First Appellate Authority in denying claim of the assessee for deduction u/s. 80IA of the Income Tax Act, 1961 (hereinafter 'the Act'). 3. The brief facts are that, the assessee is a private limited company, filed its return of income admitting total income of Rs. 2, 02, 02, 980/- on 25.10.2018 as per the provisions of the Act. The return was processed by CPC on 12.01.2020 u/s. 143(1) of the Act, wherein, the claim of deduction of Rs. 55, 10, 588/- u/s. 80IA of the Act was denied on the ground that the assessee belatedly filed/uploaded the Audit Report in Form No. 10CCB electronically on 30.03.2019 (i.e. but before the return of income was processed). 4. Aggrieved the assessee preferred an appeal before the Ld. CIT (A) who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the unit at Pondicherrys even though the assessee had not complied with the mandatory provision for filing the Audit Report in Form 10CCB in support of the claim as stipulated in Section 80IB(13) r/w. Sec. 80IA(7) of the Act, by observing that it was enough if the Audit Report was filed before the assessment was completed?" And the Hon'ble High Court answered the same by upholding the action of the Tribunal and dismissed the Revenue appeal by holding as under: "2. The assessee company is engaged in the business of manufacture of steel ingots. In respect of the assessment year 2005-06, assessment order dated 26.12.2007 was passed under Sec. 143(3) of the Act, in which, the assessing officer has disallowed the claim of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the part of the assessee to file return accompanied by the audit report, thereby, holding that the same is not mandatory. Therefore, it is clear that before the assessment is completed if such report is filed, no fault could be found against the assessee. That was also the view of the Delhi High Court in the case in COMMISSIONER OF INCOME TAX v. CONTIMETERS ELECTRICALS (P) LTD -(2009) 317 ITR 249(Delhi), wherein the Delhi High Court, by following the judgements of the Madras High Court in COMMISSIONER OF INCOME TAX V. ARUNACHALAM (A.N.)-(1994) 208 ITR 481 and in CIT v. JAYANT PATEL (2001) 248 ITR 199 (Mad) held that the filing of audit report along with the return was not mandatory but directory and that if the audit report was filed at any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t deduction be allowed. The ld.AR also relied on ITAT, Chennai Benches decisions in the case of Shri Annaswamy Sekhar vs. DCIT in ITA No. 1000/Chny/2023 dated 20.02.2024 and DCIT vs M/s. Astrotech Steels Private Limited in ITA No. 1150/Chny/2023 dated 03.07.2024. 7. Per contra, Ld.DR relied on the orders of the ld.CIT(A) and option to request condonation u/s. 119(2)(b) of the Act. 8. We have heard both the parties and perused the material available on record. We find that this was the 8th year of claiming deduction u/s. 80IA of the Act and in earlier year assessee was granted such deduction; and in the relevant AY, the CPC denied the deduction only on the ground that Audit Report/ Form No. 10CCB was belatedly e-filed i.e., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with Return of Income (RoI). We also note the Hon'ble Supreme Court's decision in M/s. Wipro Ltd. (supra) was in the context of that assessee's [Wipro] claim of exemption under Chapter III, in contra-distinction to the claim raised by the present assessee under Chapter VI-A. And it would be gainful to reproduce the Hon'ble Supreme Court's observation in M/s. Wipro Ltd., wherein in the distinction in the claim made for exemption under Chapter-III and deduction claimed under Chapter VI was noted as under: "11. Now so far as the reliance placed upon the decision of this Court in the case of G.M. Knitting Industries Pvt. Ltd. (supra), relied upon by the learned counsel appearing on behalf of the assessee is concerned, Section 10B (8) i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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