Form 10CCB late filing doesn't bar section 80IA deduction if submitted before assessment completion

ITAT Chennai allowed the assessee's appeal regarding deduction u/s 80IA where Form 10CCB was not e-filed within the due date. Following SC precedent in G.M. Knitting Industries and HC decisions, the tribunal held that filing audit reports with returns is directory, not mandatory, and compliance is satisfied if filed before assessment completion. The tribunal directed the AO to allow the deduction. Additionally, disallowance u/s 36(i)(va) for late PF payment was remanded for verification to avoid double disallowance, as the assessee had already offered this adjustment suo-moto in income computation.

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Issues Involved:
1. Assessee's claim of deduction u/s 80IA
2. Disallowance u/s 36(i)(va) for late payment of PF dues

On the issue of deduction u/s 80IA, the appeal by the assessee for Assessment Year (AY) 2017-18 arose from an order of the Commissioner of Income Tax (Appeals) regarding a rectification intimation issued by CPC Bangalore u/s 154. The grounds taken by the assessee included contentions regarding the jurisdiction of the Commissioner of Income Tax (Appeals) and the denial of deduction claimed u/s 80IA due to non-filing of Form 10CCB electronically. The appellant argued that the electronic filing of Form 10CCB along with the return of income was discretionary, not mandatory for claiming the deduction u/s 80IA. The Tribunal found in favor of the assessee based on judicial precedents, directing the AO to allow the deduction u/s 80IA.

Regarding late payment of PF dues, the issue of double disallowance was raised as the disallowed amount had already been offered by the assessee in the computation of income. The Tribunal directed the AO to verify and delete this disallowance if found to be correct, allowing the corresponding grounds for statistical purposes. The appeal was partly allowed, with the decision pronounced on 20th February, 2024.

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