Deduction under Section 80IAC allowed where Form 10CCB uploaded before completion of processing, curing a procedural lapse.

Whether delayed uploading of the supporting audit form (Form 10CCB) defeats a claim of deduction under 80IAC was resolved by treating the omission as procedural where the form was uploaded before completion of processing. The article explains the governing requirement for documentary support, applies authorities holding that filing the required form before completion of assessment/processing cures earlier non-filing, and concludes there was no prejudice to revenue; accordingly the deduction is accepted when Form 10CCB is uploaded prior to completion of processing rather than at return submission.

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Issues: Whether the disallowance by the Assessing Officer and the confirmation by the Commissioner (Appeals) of deduction claimed under Section 80IAC of the Income-tax Act, 1961 on the ground of delayed uploading of Form 10CCB (supporting audit report) is sustainable where the form was uploaded before completion of processing under Section 143(1) of the Act.

Analysis: The appeals concern claim of deduction under Section 80IAC of the Income-tax Act, 1961 supported by Tax Audit Report filed under Section 44AB of the Act and Form 10CCB. The return declared the deduction and the specified audit form (Form 10CCB) was uploaded after filing but prior to completion of processing under Section 143(1). The Tribunal examined whether delayed uploading of the supporting Form 10CCB constitutes a substantive bar to the deduction or is a procedural/technical lapse that can be remedied by filing before completion of the assessment/processing. The Tribunal considered governing statutory framework requiring support for the deduction, the timing of filing/uploading of Form 10CCB vis-a -vis processing under Section 143(1), and binding precedents which hold that where the required form/document is filed before completion of assessment/processing, the claim of deduction should be allowed notwithstanding earlier non-filing at the time of return submission. The Tribunal found no prejudice to revenue from the belated filing and treated the omission as a procedural lapse remediable by filing prior to completion of assessment proceedings.

Conclusion: The confirmation of disallowance of the deduction under Section 80IAC by the First Appellate Authority is set aside and the appeals are allowed; the deduction claimed is accepted as valid where Form 10CCB was uploaded before completion of processing under Section 143(1), favouring the assessee.

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