2026 (3) TMI 702 - AT - Income Tax

Deduction under section 80IA upheld where return filed by due date and Form 10CCB was uploaded before processing.

Deduction under section 80IA cannot be denied at processing solely for delayed upload of Form No.10CCB where the return was filed on or before the due ... Deduction u/s 80IA/80IAC - delayed filing of Form No.10CCB - claim made in return filed within due date suffices for allowance of deduction - processing u/s 143(1) cannot disallow deduction solely on procedural non-filing of Form No.10CCB - computation tax u/s 115JB Deduction claimed under Chapter (80-series) could not be disallowed at processing under section 143(1) merely for non-filing of Form No.10CCB when the return was filed within the due date and the form was submitted before processing - HELD THAT: - Tribunal held that where the assessee filed the return within the due date specified under section 139(1) and had claimed the deduction in that return (and subsequently revised the claim), mere non-filing of Form No.10CCB within the prescribed time is a procedural defect which does not disentitle the assessee to the deduction. The Tribunal applied earlier coordinate-bench decisions treating filing of Form No.10CCB as procedural and emphasised that the form was uploaded before processing by CPC; accordingly the disallowance made while processing under section 143(1) could not stand. The Tribunal directed recomputation of tax under section 115JB and remitted the matter to the Assessing Officer for verification and determination of the correct quantum of deduction, giving the assessee opportunity of being heard. [Paras 8, 10, 11, 12, 13] Appeal allowed; AO directed to compute tax under section 115JB after verifying and determining the correct amount of deduction, with opportunity to the assessee. Final Conclusion: The Tribunal allowed the appeal, holding that the deduction could not be denied solely because Form No.10CCB was filed after the prescribed time when the return was filed within the due date and the form was uploaded before CPC processing; the AO was directed to compute tax under section 115JB and verify the quantum of deduction. Issues: Whether deduction claimed under section 80IA of the Income-tax Act, 1961 can be denied at processing under section 143(1) solely because Form No.10CCB was not uploaded by the prescribed time when the return was filed on or before the due date and Form No.10CCB was uploaded before processing and the tax auditor certified the claim.Analysis: Relevant statutory framework includes the requirement to furnish return by the due date under section 139(1), the conditions for allowance of deductions under the Chapter (including section 80IA) and the non-obstante/limitation provisions reflected in section 80AC and section 80A(5), and the processing of returns under section 143(1). Judicial precedents establish that filing of Form No.10CCB is a procedural compliance and that a deduction claimed in a return filed on or before the due date (and supported by auditor certification) is not to be defeated merely for delay in filing the certificate/form, especially where the form was filed before processing. On the facts, the return was filed within the due date, the auditor certified the deduction in Form 3CD, Form No.10CCB was uploaded before processing of the return, and therefore the procedural omission did not extinguish substantive entitlement to the deduction. The matter of quantification of the eligible deduction was remitted for verification of financial statements and to afford opportunity for determination of correct quantum.Conclusion: Deduction under section 80IA is allowable to the assessee despite the delayed upload of Form No.10CCB; the assessing officer is directed to compute tax in accordance with section 115JB of the Income-tax Act, 1961 after verifying and determining the correct quantum of deduction.