2024 (2) TMI 41 - AT - Income Tax

Form 10CCB filing before section 139(1) due date is directory not mandatory for section 80-IA deduction claims

ITAT Delhi held that filing Form 10CCB before the due date under section 139(1) is directory, not mandatory, for claiming deduction under section 80-IA. ... Deduction u/s 80-IA - non-filing of Form 10CCB before due date specified in section 44AB - whether the Form 10CCB is mandatorily to be filed along with the return or the due date specified u/s 139(1) for claiming deduction u/s 80IA? - HELD THAT:- We observe that in the case of CIT Vs. Contimeters Electricals Pvt. Ltd. [2008 (12) TMI 4 - HIGH COURT DELHI] held that the requirement of filing the audit report along with the return is not mandatory but directory and that if the audit report is filed at any time before framing of assessment the requirement of section 80IA(7) would be met observing. Similar view has been taken in the case of PCIT vs. Surya Merchands Ltd. [2016 (5) TMI 947 - ALLAHABAD HIGH COURT] and in the case of CIT Vs. Sanjay Kumar Bansal [2013 (7) TMI 87 - UTTARAKHAND HIGH COURT] and ACE Multi Taxes Systems Pvt. Ltd. [2009 (1) TMI 260 - KARNATAKA HIGH COURT]. Thus we hold that filing of audit report in Form 10CCB before the due date for filing of return of income u/s 139(1) is only directory and not mandatory for the year under consideration. Thus, we direct the AO to allow deduction claimed u/s 80IA. Grounds raised by the assessee are allowed. Issues involved: The issue involves denial of deduction claimed u/s 80-IA of the Act for non-filing of Form 10CCB before the due date specified in section 44AB of the Act.Summary of Judgment:Issue 1: Filing of Form 10CCB along with the return before the due date for claiming deduction u/s 80IA of the ActThe assessee filed a return of income claiming deduction u/s 80IA of the Act but failed to file Form 10CCB before the due date specified u/s 139(1) of the Act. The ADIT(CPC) proposed disallowance of the deduction, which was later denied in the processed return u/s 143(1). The Ld.CIT(A) upheld the disallowance, stating that filing Form 10CCB along with the return is mandatory. However, the Tribunal referred to various High Court judgments and concluded that filing the audit report before the assessment is completed satisfies the requirement of section 80IA(7). The Tribunal held that filing Form 10CCB before the due date is directory, not mandatory, for claiming the deduction u/s 80IA of the Act.Issue 2: Judicial precedents supporting the non-mandatory nature of filing Form 10CCBThe Ld. Counsel for the assessee relied on judgments of various High Courts, including the Delhi High Court and Madras High Court, which held that filing the audit report before the assessment is completed is sufficient to meet the requirements of section 80IA(7). The Tribunal also cited decisions of other Courts, such as the Gujarat High Court, Bombay High Court, and Punjab & Haryana High Court, which supported the view that filing the audit report before the assessment is only directory in nature. The Tribunal concluded that the consistent judicial precedents indicated that the requirement of filing Form 10CCB before the due date is not mandatory for claiming deduction u/s 80IA of the Act.Outcome:Based on the precedents and the interpretation of the law, the Tribunal held that filing Form 10CCB before the due date for filing the return of income u/s 139(1) is only directory and not mandatory for claiming deduction u/s 80IA of the Act. The Tribunal directed the AO to allow the deduction claimed u/s 80IA of the Act, and the grounds raised by the assessee were allowed. The appeal of the assessee was allowed as per the judgment pronounced on 30/01/2024.