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TMI Blog2025 (1) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... was 30.09.2022 which stands extended to 07.10.2022. However, due to the technical glitches in the income tax e-filing portal, the assessee could not file the said Form-10CCB and it was filed on 31.10.2022. It was further submitted that the tax audit report in Form-3CD was filed on 07.10.2022 and it is within the extended due date. The auditor of the company had obtained UDIN from ICAI for the purpose of filing Form-10CCB on 07.10.2022 which is within the extended due date. However, since the Form-10CCB was not available in the account of the assessee on the portal and the same could not be assigned to the auditor, therefore, the assessee could not file the said Form-10CCB within the prescribed time limit. It was submitted that after raising grievances with the department, the said technical glitch was resolved and the assessee filed Form-10CCB on 31.10.2022. Relying on various decisions, it was submitted that since Form-10CCB was filed before the processing of the return, the CPC was not justified in rejecting the claim of deduction u/sec.80IA(4) of the Act. It was further submitted that the CPC does not have power to disallow claim of deduction u/sec.80IA(4) while processing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 07.10.2022, i.e. just 48 minutes before the limitation time. 9. It is further seen from the Tax Audit report, i.e. Form 3CD filed by the appellant that the said tax audit report was completed at 11:52:03 PM on 07.10.2022, i.e. just 8 minutes before the limitation time. Since the Form 10CCB can be issued by the Chartered Accountant only after the completion of Tax Audit Report, thus less than 8 minutes were left with the Chartered Accountant to complete the Form 10CCB and to upload the same. These facts clearly suggest that the Chartered Accountant of the Appellant was trying to complete the task at the very last moment. 10. As per the e-filing procedure, for filing Form 10CCB, the assessee is required to assign the said functionality to his CA by using the 'My CA functionality and unless the said task is assigned to the CA, Form 10CCB cannot be filed by the Chartered Accountant. Apparently, in the present case, since the Chartered Accountant completed the Tax Audit Report at the last moment, therefore, he did not have sufficient time for assigning the task of completing the Form 10CCB by using the functionality 'My CA' and uploading the Form 10CCB within a time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, therefore this situation is covered by Explanation (a)(ii) to section 143(1)(a) of the Act. Therefore, the adjustment made by the CPC falls within the provisions of section 143(1)(a) of the Act. Accordingly, the grounds no. 2 and 3 raised by the appellant does not have any merits and are DISMISSED." 3. Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds : 1) "The learned CIT(A) erred in confirming the disallowance of Rs. 3,42,22,700/- u/s 80IA(4) (i) on the ground that there was a delay in filing Form No.10CCB on the part of the appellant and his Chartered Accountant. 2) The learned CIT(A) erred in holding that the learned CPC was justified in denying the claim of deduction u/s 80IA(4)(i) in the intimation order passed u/s. 143(1) on the ground that there was a delay in filing Form 10CCB on the part of the assessee. 3) The learned CIT(A) further erred in holding that the CPC was justified in disallowing the claim of deduction u/s 80IA(4)(i) on account of delay in filing 10CCB in the intimation order passed u/s. 143(1) and the situation was covered by explanation (a)(ii) to section 143(1)(a). 4) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee referring to page-47 of the paper book drew the attention of the Bench to the screen-shot taken on 08.10.2022. Referring to page-49 of the paper book, he drew the attention of the Bench the grievance description which reads as under : "Form No.10CCB Audit Report under section 80-IA(7) is not available on the portal and hence could not be uploaded within extended due date. Attaching herewith the screenshot of CA unable to file the Audit Report under section 80-IA(7) and the screenshot of portal not showing the Form in assigning to CA." 4.1. Referring to the order of the Ld. CIT(A), he submitted that although all these things were pointed-out before the Ld. CIT(A), however, he has not discussed anything about the glitches which prevented the assessee from filing Form-10CCB. Without prejudice to the above, he submitted that because of the technical glitches the assessee could not file Form-10CCB and the department does not say that the assessee is incorrect. Therefore, because of the technical glitch on the part of the department, the assessee should not have been denied the benefit of deduction u/sec.80IA(4) of the Act. He drew the attention of the Bench the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Form-10CCB was filed belatedly i.e., not along with the return of income. 4.5. He accordingly submitted that since the assessee has filed the audit report before the assessment was completed and it is evident from the record that the audit report could not be filed before the specified due date due to technical glitches in the portal of the department and it was beyond the control of the assessee and since the CPC does not have power to deny claim of deduction u/sec.80IA(4) while processing return u/sec.143(1) of the Act, therefore, the Ld. CIT(A) was not justified in rejecting the claim of deduction u/sec.80IA(4) of the Act. 5. The Learned DR on the other hand, relied on the order of the Ld. CIT(A) and submitted that CPC is well within the power to deny the claim of deduction u/sec.80IA(4), if the assessee is otherwise ineligible due to non-filing of the prescribed audit report in Form-10CCB as per law. He accordingly submitted that grounds raised by the assessee should be dismissed. 6. We have heard rival submissions made by both the sides and perused the material available on record. We find the assessee in it's return of income had claimed deduction of Rs. 3,42,22,760/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed ought to have been allowed as held by the Hon'ble Supreme Court in the case of GM Knitting Industries (P.) Ltd., (supra), wherein the Apex Court had an occasion to examine the action of Bombay High Court holding that if Form 3AA is filed before the assessment proceedings culminated, then additional depreciation shall be allowed and such a claim should not be denied only because assessee did not furnish Form 3AA along with return of income. And the Hon'ble Apex Court, affirmed the action of the Hon'ble High Court of Bombay as well as tagged along matter wherein Revenue challenged the action of the Hon'ble Madras High Court in AKS Alloys Pvt. Ltd (supra) and the Civil Appeal of department was dismissed, which means the decision of the Hon'ble Madras High Court has been affirmed by Hon'ble Supreme Court, and is binding precedent that if assessee had filed the Form 10CCB before the assessment proceedings culminate, then the deduction claimed u/s. 80IB ought not to be denied on the reason that assessee did not file Form 10CCB 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] c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is filed before the final order of assessment, the assessee was entitled to claim deduction under section 80JJAA. The relevant observations of the Kolkata Bench of the Tribunal from para-2 onwards read as under : "2. The short issue involved in this appeal is as to whether the late filing of audit report in Form 10DA would disentitle the assessee from claiming deduction u/s. 80JJAA of the Act, when the said Form 100A was available to the Ld. AO at the time of assessment proceedings. The assessee in this case filed the Form 100A on 27.10.2023 as against the due date of 30.09.2023 but, the same was available to the AO at the time of processing the return of income as the notice u/s. 143(1)(a) of the Act was issued by the CPC to the assessee on 23.11.2023. 3. The issue is squarely covered by the decision of Hon'ble Supreme Court in the case of CIT V. G. M Knitting bahotries (P) Ltd. (2016/12 SCC 272/[2016] 71 taxmann.com 35/376 ITR 456 (SC), wherein the Hon'ble Supreme Court has held that, even though it is necessary to file certificate in Form 10CCB along with the return of income, but even if the same has not been filed with the return of income, but the same was filed ..... 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