Section 80-IA deduction upheld after CBDT condoned belated return; claim restored subject to AO verification.

Deduction under Section 80-IA was allowed where CBDT condoned the belated return and the Principal Chief Commissioner gave effect under s.119(2)(b), removing the technical bar to filing; the Assessing Officer had already accepted the assessee's factual submissions and the prior disallowance rested solely on delay. The condonation treats the belated return as a valid return while preserving AO jurisdiction to examine claims on merits; consequently the deduction was restored subject to AO verification on merits.

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Issues: Whether deduction under Section 80-IA of the Income-tax Act, 1961 claimed for Assessment Year 2018-19 is allowable where the return was filed belatedly but the delay was subsequently condoned by the Central Board of Direct Taxes and effect was given under Section 119(2)(b) of the Income-tax Act, 1961.

Analysis: The Tribunal admitted additional evidence consisting of CBDT approval condoning delay and the consequent order of the Principal Chief Commissioner of Income Tax giving effect to that condonation, both of which post-dated the appellate order and thus could not have been placed before lower authorities. The assessing officer had recorded that the factual replies and details filed by the assessee were found to be correct and the disallowance was made solely on the ground of belated filing. CBDT's condonation treats the belated return as a regular and valid return for the relevant assessment year while preserving the AO's jurisdiction to examine claims on merits. Given that the AO had already accepted the factual details and the technical impediment (delay) has been removed by CBDT/PCIT, the legal impediment to claiming deduction under Section 80-IA no longer subsists, entitling the assessee to the deduction subject to verification on merits by the AO.

Conclusion: Deduction under Section 80-IA of the Income-tax Act, 1961 is allowable to the assessee for Assessment Year 2018-19 because the belated filing was condoned by CBDT and given effect to by the PCIT, and the disallowance by the AO was solely on the ground of delay; the appeal is allowed and the deduction is restored.

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