ITAT allows section 80-IC deduction after finding Form 10CCB filed timely with original return

ITAT Mumbai allowed the appeal regarding deduction under section 80-IC for an eligible unit in Rudrapur, Uttarakhand. The AO denied the claim stating Form 10CCB was not filed before the due date. ITAT held that since the assessee had specified domestic transactions exceeding Rs. 5 crores requiring compliance with section 92E, the due date for filing return was 30/11/2015 under clause (aa) of Explanation-2 to section 139(1). The original return filed on 29/11/2015 with Form 10CCB was valid and timely. The tribunal ruled that detailed examination of Form 10CCB compliance was beyond the limited scope of section 143(1) processing, which only permits prima facie adjustments. The CIT(A)'s order upholding the denial was set aside.

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Issues Involved:
1. Disallowance of deduction under section 80-IC.
2. Filing of Audit Report in Form 10CCB.
3. Determination of the due date for filing the Return of Income.
4. Validity of Revised Return of Income.
5. Applicability of section 80AC.
6. Prima facie adjustments under section 143(1).
7. Levy of interest under section 234C.

Summary:

1. Disallowance of Deduction under Section 80-IC:
The assessee challenged the disallowance of Rs. 1,35,62,893 claimed under section 80-IC for its Rudrapur unit. The assessee filed its return on 29/11/2015, which was processed, and the deduction was denied. The CIT(A) upheld the disallowance, stating the return was belated and the audit report was not filed timely.

2. Filing of Audit Report in Form 10CCB:
The CIT(A) held the assessee did not file the audit report in Form 10CCB before the due date. The Tribunal found that the audit report was indeed filed on 29/11/2015, the same date as the return, and thus supported the deduction claim under section 80-IC.

3. Determination of the Due Date for Filing the Return of Income:
The CIT(A) considered the due date as 31/10/2015, while the assessee argued it was 30/11/2015 due to international and specified domestic transactions requiring a report under section 92E. The Tribunal agreed with the assessee, stating the due date was 30/11/2015, making the return filed on 29/11/2015 valid.

4. Validity of Revised Return of Income:
The CIT(A) held the revised return filed on 29/03/2017 was invalid as the original return was belated. The Tribunal found this irrelevant since the original return was valid under section 139(1), making the revised return a non-issue.

5. Applicability of Section 80AC:
Since the return filed on 29/11/2015 was within the due date, the provisions of section 80AC, which could deny the deduction for late filing, were not applicable.

6. Prima Facie Adjustments under Section 143(1):
The CIT(A) supported the AO's denial of the deduction under section 80-IC due to non-compliance with sections 80-IC(7) and 80-IA(7). The Tribunal found that such detailed examination was beyond the scope of section 143(1), which allows only prima facie adjustments.

7. Levy of Interest under Section 234C:
The issue of interest under section 234C was deemed consequential and required no separate adjudication.

Conclusion:
The Tribunal allowed the appeal, setting aside the CIT(A)'s order and recognizing the original return filed on 29/11/2015 as valid, thereby permitting the deduction claimed under section 80-IC. The interest issue under section 234C was noted as consequential.

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