2023 (10) TMI 1429

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....red in confirming the disallowance of the Long Term Capital Loss claimed of Rs. 6,25,79,960/-. (3) The CIT(A) National Faceless Appeal Centre erred in not appreciating the fact that while submitting Form 3CEA on 25.04.2021 the appellant had stated that the report had been obtained before filing the return of income but was omitted to be filed with the return of income then, as attachments were not allowed, that it was not filed when asked for it, as the company is closed and defunct and there was no staff to look after the income tax matters and when the appellant came to know about the non filing, the appellant submitted the same immediately and requested to condone the delay in filing Form 3CEA. (4) The CIT(A) National Faceless Appeal Centre erred in not appreciating the fact that the following decisions were applicable to the appellant's case wherein It has been held that if Form 10CCB is not filed within the due date for filing the return of income but filed in the course of assessment proceedings the assessee is entitled to deduction u/s.80IB. (i) CIT Vs GM Knitting Industries P Ltd (376 ITR 456 ) SC (ii) CIT Vs AKS Alloys P Ltd (18 Taxmann.....

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....al loss claimed in the return. However, the ld. Assessing Officer was of the view that Form 3CEA was to be filed before the due date of filing of the return as specified under section 139(1) of the Act along with the return of income using a Digital Signature Certificate and in absence thereof, the long-term capital gain/ loss from slump sale claimed under section 50B of the Income Tax Act was disallowed and added to the income of the assessee. 4. Aggrieved, the assessee preferred appeal before the ld. CIT(Appeals) but failed to succeed. The ld. CIT(Appeals) held that the Certificate in Form 3CEA of the Accountant is mandatory to ascertain the correctness of the net worth and in absence of supporting and mandatory documentation, the claim of the appellant is not allowable. 5. Aggrieved, the assessee is now in appeal before the Tribunal. 6. Ld. Counsel for the assessee submitted that it is an admitted fact that the Form 3CEA was not uploaded alongwith the return of income before the due date of filing of the return of income. The said form was duly placed before the ld. Assessing Officer as well as ld. CIT(Appeals) and even though reliance was placed on various decisions, w....

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....ing Officer has examined this transaction and so far as the figures of sale consideration and the net worth of the undertaking or division are concerned, there is no dispute at the end of Revenue. The only reason for denying the said claim of the assessee is for non-filing of form 3CEA. Admittedly when the return of income was filed electronically on 16.10.2018 in Form 3CEA, which the assessee was required to obtain from the auditor as per Rule 6H read with section 50B(3) of the Act and the same was required to be uploaded on E-Portal under PAN of the assessee by the auditor. The said report was not available on the E-Portal. When the assessee was confronted with this fact, he stated that Form 3CEA was duly obtained on 16.10.2018 but the same was not uploaded with the return filed on 16.10.2018. During the course of assessment proceeding itself, the assesese filed the copy of Form 3CEA and stated that the same could not be uploaded at that point of time by the auditor and now there is no mechanism to file such report on the E-Portal at this stage. Even though, the copy of Form 3CEA was furnished before the ld. Assessing Officer, he failed to take the cognizance of the same, merely ....

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....he alleged claim in the Income Tax Return and duly furnished Form 3CEA during the course of assessment proceedings and further an affidavit has also been filed by the auditor mentioning the reason due to which the Form 3CEA was not uploaded on the E-Portal of Income Tax along with the return of income at the time of filing the return of income before the due date under section 139(1) of the Act, we are of the view that both the lower authorities ought to have treated the furnishing of Form 3CEA as a sufficient compliance for the purpose of allowing long-term capital loss claimed by the assessee under section 50B of the Act. We, therefore, set aside the finding of ld. CIT(Appeals) and decide in favour of the assessee. Thus all the effective grounds of the assessee raised on merits are allowed. 11. Others grounds being general and consequential in nature need no adjudication. 12. In the result, the appeal of the assessee is allowed as per terms indicated hereinabove. Order pronounced in the open Court on 3rd October, 2023. ============= Document 1 wellman Coke in भारतीय गैर न्यायिक ....