Tribunal allows appeal, grants deduction under section 80-IA despite late filing

The Tribunal allowed the appeal filed by the assessee, overturning the CIT(A)'s decision to disallow a deduction under section 80-IA of the Income Tax Act. Despite the late filing of Form 10CCB due to technical glitches, the Tribunal held that the delay should not bar the deduction claim. Relying on a similar precedent, the Tribunal found the assessee eligible for the deduction and ruled in favor of allowing the claim under section 80-IA.

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Issues involved:
The solitary issue raised is the justification of confirming the disallowance of claim of deduction under section 80-IA of the Income Tax Act, 1961.

Summary:

Issue 1: Disallowance of deduction under section 80-IA

The appeal was against the order of the CIT(A) confirming the disallowance of a deduction under section 80-IA amounting to Rs. 2,43,586. The assessee had claimed the deduction for a windmill in the return of income filed for the Assessment Year 2019-20. However, the deduction was denied as Form 10CCB was not filed within the time prescribed under section 139(1) of the Act. The CIT(A) upheld the disallowance stating that the appellant had not filed Form 10CCB within the stipulated date as required by the Income Tax Act, even though the deduction was claimed. The appeal was dismissed by the CIT(A).

Issue 2: Appeal before the Tribunal

The assessee appealed to the Tribunal challenging the order of the CIT(A). The grounds raised included contentions that the assessment order passed under section 143(1) was bad in law, and the disallowance of the deduction under section 80-IA was unjustified. The appellant argued that the audit report was obtained within the due date, technical glitches prevented uploading the report, and the deduction claim was made within the specified time under section 139(1). The appellant also argued that any belated filing of the form should not bar the claim of deduction under section 80-IA.

Issue 3: Tribunal's Decision

After hearing both parties, the Tribunal found that the assessee was eligible for the deduction under section 80-IA. Despite the delay in filing Form 10CCB due to technical glitches beyond the assessee's control, the Tribunal held that the reasons for non-filing should not prevent the allowance of the deduction. Citing a similar case precedent, the Tribunal ruled in favor of the assessee, allowing the claim of deduction under section 80-IA. The appeal filed by the assessee was allowed, and the order was pronounced in open court.

This summary provides a detailed overview of the issues involved, the arguments presented, and the Tribunal's decision in the legal judgment.

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