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2025 (1) TMI 31

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..... rected against the order dated 14.08.2024 of the learned CIT(A), Pune-11, Pune relating to assessment year 2022-2023. 2. Facts of the case, in brief, are that the assessee is a company engaged in development of infrastructure project and filed it s return of income on 15.10.2022 declaring total income at Rs. 6,41,73,900/-, after claiming deduction of Rs. 3,42,22,700/- u/s. 80IA(4)(i) of the Act. The CPC processed the return and passed an intimation u/s. 143(1) determining the total income at Rs. 9,83,96,600/-, by reducing the claim of deduction u/sec.80IA(4). 2.1. Before the learned CIT(A), it was argued that the due date for filing the report in Form-10CCB as required by Sec.80IA(7) of the Act 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 .....

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..... o claim deduction u/s. 80IA unless Form 10CCB is filed before the specified date. With this amendment, vide Finance Act, 2020, filing of Form 10CCB within the prescribed time limit has been made mandatory because before the said amendment, the Form 10CCB was required to be filed along with the return of income. Thus, no time limit for filing Form 10CCB was prescribed for the assessment years prior to AY 2020-21. 8. It is also important to note that w.e.f. 01.04.2019, it is mandatory to obtain UDIN for practicing Chartered Accountants for all reports issued under the Income Tax Act, 1961 from the ICAI and as per the appellant, the UDIN for issuing Form 10CCB was obtained at 23:12:29 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 fact .....

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..... the claim of deduction u/sec.80IA(4) while processing the return u/sec.143(1) is concerned, the learned CIT(A) also dismissed the same by observing as under : 14. I have considered the facts of the case and the submission made by the appellant. As per section 143(1)(a)(ii) of the Act, the adjustment on account of an incorrect claim, if the same is apparent can be made while processing the return of income. In the present case, undisputedly, the mandatory Form 10CCB was not filed within the prescribed time and therefore as per the provisions of section 80IA(7), the appellant was not eligible for deduction u/s. 80IA(4) of the Act. Since Form 10CCB was not filed within time, 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( .....

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..... orm was available on record, there was no reason to deny the deduction claimed u/s. 80IA(4)(i). 10) The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal. 4. Learned Counsel for the Assessee, at the outset, reiterated the same arguments as made before the Ld. CIT(A). He submitted that the CPC has no power to disallow the claim made u/sec.80IA(4) of the Act in Form-10CCB. Further due to technical glitches the assessee could not upload the Form- 10CCB before the extended due date i.e., on 07.10.2022 and the same was uploaded only on 31.10.2022 after the technical glitch was resolved. Learned Counsel for the Assessee 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. .....

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..... e, assessee was entitled to claim deduction under section 80JJAA. He submitted that the above decision was passed after considering the decision of Hon ble Supreme Court in the case of Pr. CIT vs. Wipro Ltd., [2022] 446 ITR 1 (SC). 4.4. Referring to the decision of Chennai Bench of the Tribunal in the case of Natesan Precision Components Private Ltd., Chennai vs., DCIT in ITA.No.1397/Chny/2024, order dated 09.08.2024 for the assessment year 2018-2019, the Learned Counsel for the Assessee submitted that the Tribunal in the said decision has held that a claim of deduction u/sec.80IA(4) cannot be denied merely because the audit report 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 .....

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..... n 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, not along with the return of income. On appeal, the Ld.CIT(A) has confirmed the action of the CPC by holding that the assessee ought to have filed Form No.10CCB on the due date, which requirement of law, we note came w.e.f. 01.04.2020 and is not applicable for AY 2017-18. Having said so, we note that the assessee had e-filed Form No.10CCB before the CPC had processed the return of income u/s 143(1) of the Act; and therefore, the deduction claimed 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 wherei .....

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..... filed the Form 10CCB, therefore, the claim of deduction ought to have been granted especially when assessee was granted such a deduction for the earlier 5 years. Therefore, we set-aside the impugned order of Ld.CIT(A)/JCIT(A) and direct the AO to allow the claim of deduction u/s. 80IA of the Act. 10. In the result, appeal filed by the assessee is allowed. 6.3. We find the Kolkata Bench of the Tribunal in the case of Tarasafe International (P.) Ltd., vs. DDIT, CPC (supra) after considering the decision of the Hon ble Supreme Court in the case of Pr. CIT vs. Wipro Ltd., (supra), has held that when the audit report 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. .....

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..... ncome which do not Form a part of total income , cannot be equated with mechanism provided for deductions in Chapter VIA, which deals with deductions to be made in computing total income . Therefore, none of the decisions which are relied upon on behalf of the assessee on interpretation of Chapter VIA shall be applicable while considering the claim under section 10B(8) of the I.T. Act. In view of this, the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of G. M. Knitting Industries Pvt. Ltd. (supra) the impugned order of the Ld. CIT(A) is, therefore, set aside and the AO is directed to grant deduction to the assessee u/s. 80JJAA of the Act as claimed. The appeal of the assessee stands allowed. 5. In the result, the appeal of the assessee stands allowed. 6.4. Since the assessee in the instant case has admittedly filed the audit report in Form-10CCB prior to the processing of the return, therefore, respectfully following the decisions cited (supra), we are of the considered opinion that assessee cannot be denied deduction u/sec.80IA(4) of the Act. Accordingly, the order of the Ld. CIT(A) is reversed and the grounds rais .....

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