TaxTMI 
TaxTMI 
TaxTMI 
2022 (10) TMI 942
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....ts in not appreciating the fact that report in form No. 10CCB could be submitted at any time before completion of the assessment which has been done in the instant case. 4. That the Ld. Commissioner of Income Tax (Appeals-1) has further erred in law as well as on facts in applying provisions of Sec. 80AC holding that since the return of income has not been filed in time as per provisions of Sec. 139(1), deduction u/s. 80IB is not allowable. 5. That the Ld. Commissioner of Income Tax (Appeals-1) has further erred in law as well as on facts in not appreciating the reasonable cause in not filing the -return of income in time. 6. That the Ld. Commissioner of Income Tax (Appeals-1) has further erred in law as well as on facts in not appreciating that where there are conflicts of opinions of the various benches of the ITAT on the provision u/s 80AC of requirement of return filing before due date to claim deduction u/s 801B, the deduction should been allowed on the basis that the decision favourable to the assessee should have been accepted. 7. That the Ld. Commissioner of Income Tax (Appeals-1) has further erred in law as well as on facts in not appreciating that provisions of se....
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....re, it was contended that the claim of deduction under section 80IB of the I.T. Act cannot be denied solely on the ground that the assessee has not submitted the audit report online, but it was submitted manually. The ld. CIT(A) confirmed the disallowance made by the Assessing Officer on two counts, (i) that the assessee has not submitted the audit report in Form No.10 CCB electronically and father (ii) the return of income filed by the assessee was also belated and not within the due date as prescribed under section 139(1) of the Act. 4. Aggrieved by the impugned order of the ld. CIT(A), the assessee has filed the present appeal. The ld. Counsel for the assessee has submitted that so far as the disallowance of the claim of deduction under section 80IB of the Act, for want of filing of the audit report in Form No.10CCB electronically is concerned, the same is covered by the judgement, dated 7.4.2017 of the Hon'ble jurisdictional High Court in the case of CIT vs. M/s Fortune Foundation Engineers & Consultants Private Limited in Income Tax Appeal No. 6 of 2012. The ld. Counsel for the assessee has referred to the substantial question of law framed in the said case by the Hon'ble Hig....
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....there is a delay in filing of the return of income, which is mandatory condition for the claim of deduction under section 80IB of the Act. The ld. D.R. has relied on the orders of the authorities below. 7. I have considered the rival submissions as well as the relevant material available on record. The Assessing Officer has disallowed the claim of deduction under section 80IB of the Act on the ground of non-filing of the audit report in Form No.10CCB electronically. The relevant part of the order of the Assessing Officer, viz. para 3 of the assessment order is reproduced, as under: "3. During the course of assessment proceedings it is found that the assessee has not submitted the online audit report for the year under consideration. The Ld. AR during the course of assessment proceedings was required to explain as to why the case of the assessee has not been audited and the audit report not been filed electronically. The Ld. AR submitted the Form no, 10CCB manually and submitted that due to unavoidable circumstances the audit report could not be uploaded electronically. The Ld. AR during the course of assessment proceedings was informed that the deduction u/s 80IB is admissible o....
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....t, will it amount to non-compliance of Section 80IB (13) read with Section 80IA (7). 41. In CIT v. Ace Multitaxes System (P) Ltd. [2009] 317 ITR 207 (Kar.), it was held that when a relief is sought for under Section 80-IB of Act, 1961, there is no obligation on the part of Assessee to file return accompanied by audit report, thereby, holding that same is not mandatory. 0. Same view was taken by Delhi High Court in CIT v. Contimeters Electrical (P) Ltd. [2009] 317 ITR 249/178 Taxman 422; by Madras High Court in CIT v. Jayant Patel [2001] 248 ITR 199/117 Taxman 707. 42. Supreme Court in CIT v. G.M. Knitting Industries (P) Ltd. [2015] 376 ITR 456/[2016] 71 taxmann.com 35 dismissed appeal of Revenue and confirmed the view taken by Madras High Court holding that filing of audit report and form 10CCB along with return is not mandatory. 43. In view of above, we answer question no. 2 in ITA No. 73 of 2010 in favour of Assessee and against Revenue, holding that it is not mandatory and only directory and Assessee cannot be made to suffer if it filed audit report in form 10CCB in the course of assessment proceedings and not alongwith return. 44. Question No. 1 in ITA No. 29 of 2014 ....
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....duction u/s 80IB but keeping in view the fact that the appellant had uploaded the audit report u/s 80IB in form' 10CCB for claiming a deduction u/s 80IB and the fact that the appellant did not get any intimation as to the return being defective, it is well established, that appellant was of the bonafide view that the report was also uploaded. The appellant has filed the hard copy of the report with the AO, which is evident from the assessment order, AO has not disputed the fact that the report had been prepared before the due date of filing of return, as is also evident from" the assessment order. Subsequently, the appellant uploaded the report also before the completion of the assessment. Appellant fulfills all other conditions of eligibility of deduction u/s 80IB, therefore it is held that the appellant is entitled to deduction u/s 80IB. A section, which is beneficial .in' nature, once duly complied with, should be construed liberally to provide the benefit it intends to do so. In view of the above the deduction of Rs.45,21,570.00, claimed by the appellant u/s 80IB of the Income Tax Act is allowed." 12. So far as the claim of deduction under section 80IB of the I.T. Act ....
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....nflexible nor inelastic. Ass.ese filed his return on 24.03.201.5.with a delay of 114 days u/s 139(4) The question that arises, therefore, that as regards the allowance of deduction under section 80-IB of the Act is whether the provisions of s. 80IB are applicable to the assessee or whether the assessee falls Within the ambit of the deduction u/s 80IB but not the time limit for filing the return of income by him mentioned in s. 80AC of the Act. This view is further reinforced by the provisions of s. 119 of the Act; (ii) As per the provisions of s. 119 of the Act, the Board may for avoiding genuine hardship to the assessees relax any requirement contained in any of the provisions of Ch. IV or Ch. VI-A, where the assessee has failed to comply with any requirement specified in such provision for claiming deduction there-under, subject to the conditions that the default in complying with such requirement was due to circumstances beyond the control of the assessee; and the assessee has complied with such requirement before the completion of assessment in relation to the previous year in which such deduction is claimed; - that it is clear, therefore, that the provision contained i....