Tribunal directs AO to verify timely audit report filing for deduction claim under . Appeal allowed for statistical purposes. Dismisses disallowance under .

The Tribunal directed the Assessing Officer to examine the timely electronic filing of the audit report in Form 10CCB to determine the allowance of the deduction claimed under Section 80IA(4)(v). The Tribunal allowed the appeal for statistical purposes, instructing verification of the audit report filing. The Tribunal dismissed the grounds related to the disallowance under Section 14A.

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Issues Involved:
1. Denial of the claim of deduction under Section 80IA of the Income-tax Act, 1961.
2. Computation of disallowance under Section 14A of the Income-tax Act, 1961.

Detailed Analysis:

1. Denial of the Claim of Deduction under Section 80IA:
- Facts: The assessee, a limited company, filed its original return of income on 25-11-2016, declaring an income of Rs. 13,66,64,028/-. Subsequently, it filed a revised return on 31-03-2016, claiming a deduction under Section 80IA(4)(v) amounting to Rs. 1,08,31,990/-, reducing the declared income to Rs. 12,63,73,639/-. The case was selected for complete scrutiny, and the Assessing Officer (AO) observed that the deduction claim was not made in the original return but only in the revised return. Consequently, the AO denied the claim based on Section 80AC, which mandates that such deductions must be claimed in the return filed on or before the due date specified under Section 139(1).
- CIT(A) Decision: The Commissioner of Income-tax (Appeals) upheld the AO's decision, referring to judicial precedents that supported the denial of the deduction claim.
- Assessee's Argument: The assessee contended that the original return was filed within the extended due date, and the revised return was also filed within the prescribed time limit. The assessee argued that the decision in the case of Suolificlo Lines Italia (India) (P) Ltd was not applicable as the facts differed. The assessee relied on the ITAT Kolkata decision in the case of DCIT, Circle-4, Kolkata Vs. M/s. Mackintosh Burn Ltd, which allowed the deduction if the original return was filed before the due date and the claim was made in the revised return.
- Tribunal's Analysis: The Tribunal examined the provisions of Sections 80IA(4)(v), 80IA(7), and 80AC, along with Rules 18BBB(2) and 12(2) of the Income-tax Rules, 1962. It noted that one of the conditions for claiming the deduction is that the return must be filed before the due date specified under Section 139(1). Additionally, the audit report in Form 10CCB must be electronically filed before the due date. The Tribunal found that the assessee had filed the original return before the due date but failed to claim the deduction in it, making the claim in the revised return instead.
- Decision: The Tribunal directed the AO to examine whether the audit report in Form 10CCB was filed electronically before the due date. If the audit report was filed on time, the deduction claim in the revised return should be allowed. If not, the claim should be denied. The Tribunal allowed the assessee's appeal for statistical purposes, directing the AO to verify the filing of the audit report and decide accordingly.

2. Computation of Disallowance under Section 14A:
- Facts: The assessee challenged the computation of disallowance under Section 14A, which was directed by the CIT(A) to be Rs. 52,22,592/-.
- Assessee's Argument: The assessee requested the AO to re-compute the disallowance under Section 14A read with Rule 8D(iii), considering only the securities that yielded tax-free income without linking it to the amount of Rs. 52,22,592/-.
- Tribunal's Decision: At the outset, the assessee's counsel requested not to press Ground No. II (a) and (b) related to the disallowance under Section 14A. Consequently, the Tribunal dismissed these grounds.

Conclusion:
The Tribunal partly allowed the appeal for statistical purposes, directing the AO to verify the electronic filing of the audit report in Form 10CCB and decide the issue of deduction under Section 80IA(4)(v) accordingly. The grounds related to the disallowance under Section 14A were dismissed.

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