Partnership firm wins deduction appeal for construction business under section 80IB (10)

The Tribunal upheld the CIT(A)'s decision, allowing the deduction under section 80IB (10) for the partnership firm in the construction business. It was ruled that Form No. 10CCB could be filed during assessment proceedings, citing precedent cases. The Revenue's appeal was dismissed, and the assessee's cross objection was deemed infructuous. The decision was finalized on January 11, 2019, with no modifications or reversals by the High Court.

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Issues:
1. Whether Form No. 10CCB must be filed along with the return of income or can be filed during the course of assessment proceedings.

Analysis:
The appeal and cross objection were against the Commissioner of Income Tax (Appeals) order for the Assessment Year 2014-15. The assessee, a partnership firm in the construction business, filed its return claiming deduction under section 80IB (10) of the Income Tax Act, 1961. The Assessing Officer denied the claim as Form No. 10CCB was not filed along with the return. The assessee relied on a decision by the Jaipur Bench of the ITAT, arguing that Form No. 10CCB can be filed during assessment proceedings. The CIT(A) directed the Assessing Officer to allow the deduction under section 80IB (10), leading to the Revenue's appeal before the Tribunal.

The key issue was whether Form No. 10CCB had to be filed along with the return of income or could be filed during assessment proceedings. The Tribunal referred to the decision of the Jaipur Tribunal in the case of Khetan Tiles Private Ltd. and the Supreme Court's decision in CIT Vs. G.M. Knitting Industries. It was observed that substantial compliance was achieved by filing the audit report electronically during assessment proceedings. The Tribunal upheld the CIT(A)'s order, dismissing the Revenue's appeal.

The Tribunal found no infirmity in the CIT(A)'s decision, as it was based on the Jaipur Tribunal's decision supported by the Supreme Court's ruling. No contrary decision was presented, and the order was not modified or reversed by the High Court. Consequently, the appeal by the Revenue and the cross objection by the assessee were both dismissed, with the assessee's cross objection being deemed infructuous. The decision was pronounced on January 11, 2019.

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