Assessee gets Section 80IC deduction despite late Form 10CCB filing before assessment completion

The ITAT Delhi allowed the assessee's appeal for deduction u/s 80IC despite Form 10CCB being filed after the due date. The assessee filed the return on 29.08.2017 with due date 07.11.2017, tax audit report on 28.10.2017, and Form 10CCB on 28.05.2018. Since Form 10CCB was filed before the section 143(1) intimation dated 08.02.2019, the tribunal held the deduction should be allowed. Following SC precedent in G.M. Knitting Industries, the tribunal ruled that filing required forms during assessment proceedings before final order constitutes sufficient compliance for claiming deductions.

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Issues:
The issues involved in the judgment are the addition/adjustments made in the intimation under section 143(1), denial of deduction under section 80IC of the Income Tax Act, 1961, passing of an ex-parte order by the CIT(A), passing order without providing proper opportunity of being heard, and the order passed by CIT(A) being against the principles of natural justice.

Addition/Adjustments Made in Intimation Under Section 143(1):
The appeal filed by the assessee was directed against the order of the Commissioner of Income Tax (Appeals) pertaining to Assessment Year 2017-18. The return of income was filed declaring total income, but the deduction under section 80IC was denied due to the audit report not being filed within the due date. The CIT(A) confirmed the disallowance, but the assessee argued that the audit report was signed before the due date and the delay was due to inadvertence. The ITAT found that the Form 10CCB was filed before the intimation under section 143(1), and based on legal precedents, the deduction was allowed. The appeal was allowed in favor of the assessee.

Denial of Deduction Under Section 80IC:
The denial of deduction under section 80IC was based on the audit report not being filed within the due date, even though the return of income was filed on time. The CIT(A) confirmed the disallowance, but the ITAT, considering legal precedents, held that the deduction should be allowed since the Form 10CCB was filed before the final order of assessment was made. Relying on relevant case laws, the ITAT decided the issue in favor of the assessee, setting aside the orders of the authorities below.

Passing of Ex-parte Order and Denial of Opportunity to be Heard:
The assessee contended that the CIT(A) passed an ex-parte order without providing a proper opportunity to be heard, which was against the principles of natural justice. The ITAT reviewed the submissions of both parties and found that the Form 10CCB was filed before the intimation under section 143(1), allowing the deduction. Citing legal precedents, the ITAT decided in favor of the assessee, setting aside the orders of the authorities below and allowing the appeal.

Conclusion:
Based on the facts presented and legal arguments, the ITAT decided in favor of the assessee on all issues raised in the appeal. The ITAT allowed the appeal, setting aside the orders of the authorities below and granting the deduction under section 80IC.

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