Tribunal allows deduction under section 80IA based on timely audit report filing. Procedural lapses should not deny substantive rights.

The Tribunal directed the AO to allow the deduction claimed u/s 80IA as the audit report in Form 10CCB was filed before the completion of the assessment, following legal precedents that procedural lapses should not deny substantive rights. The appeal filed by the assessee was allowed.

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Issues Involved:
1. Disallowance of deduction u/s 80IA due to non-filing of Form 10CCB along with the return of income.
2. Consideration of audit report filed after the return but before assessment completion.
3. Applicability of judicial precedents on procedural compliance for deductions.
4. Disallowance of ESI and PF payments deposited beyond due date but before filing return u/s 139(1).

Summary:

Issue 1: Disallowance of deduction u/s 80IA due to non-filing of Form 10CCB along with the return of income
The assessee filed a return of income on 24.10.2017 for AY 2017-18, claiming a deduction u/s 80IA but did not file Form 10CCB with the return. The AO disallowed the deduction and issued an intimation u/s 143(1) on 09.03.2019, determining a higher total income. The CIT(A) upheld the AO's decision, citing non-compliance with the mandatory filing of Form 10CCB along with the return.

Issue 2: Consideration of audit report filed after the return but before assessment completion
The assessee argued that the audit report in Form 10CCB was filed electronically on 18.05.2018, before the AO completed the assessment. The Tribunal noted that the audit report was indeed available to the AO before the issuance of the intimation u/s 143(1). Citing the Supreme Court's decision in CIT vs GM Knitting Industries Pvt Ltd., it was held that the filing of Form 10CCB before the final assessment entitles the assessee to the deduction.

Issue 3: Applicability of judicial precedents on procedural compliance for deductions
The Tribunal referenced the ITAT Chennai decision in Aquasub Engineering vs DCIT and the Madras High Court decision in CIT vs Ramani Realtors P Ltd, which held that the filing of Form 10CCB is directory, not mandatory. Therefore, if the audit report is filed before the completion of assessment, the deduction u/s 80IA should be allowed.

Issue 4: Disallowance of ESI and PF payments deposited beyond due date but before filing return u/s 139(1)
The Tribunal did not specifically address this issue in the provided text.

Conclusion:
The Tribunal directed the AO to allow the deduction claimed u/s 80IA, as the audit report in Form 10CCB was filed before the completion of the assessment, following the legal precedents that procedural lapses should not deny substantive rights. The appeal filed by the assessee was allowed.

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