TaxTMI 
TaxTMI 
2025 (11) TMI 727
X X X X Extracts X X X X
X X X X Extracts X X X X
....me; however, the same was inadvertently filed before the Chennai Bench of the Tribunal instead of the Hyderabad Bench which had jurisdiction. When the assessee opened the e-filing website on 10.03.2025, it came to notice that the Chennai ITAT had returned the appeal with a remark that the jurisdiction of the appeal lies with Hyderabad ITAT. Immediately thereafter, the assessee refiled the appeal with the Hyderabad ITAT on 11.03.2025. Thus, the delay of 11 days was caused only on account of an inadvertent mistake in selecting the wrong jurisdictional bench at the time of original filing. It was further submitted that there was no malafide intention on the part of the assessee, and the delay was purely due to a procedural error. The Ld. AR prayed before the bench for condonation of delay in filing of the appeal and admission of the appeal for adjudication. 3. Per contra, the Learned Departmental Representative ("Ld. DR") fairly submitted that he had no serious objection to the condonation of delay, considering that the assessee had initially filed the appeal within the stipulated period and the delay was due to a bona fide mistake. 4. We have considered the rival submissions an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... time of or before the hearing of the appeal. 6. The brief facts of the case are that, the assessee is the proprietor of M/s. Sarvotham Care, having income from two units, one being a solar power generation unit eligible for deduction under section 80IA(4)(iv) of the Income Tax Act, 1961 ("the Act") and another manufacturing unit. During the financial year 2020-21, the assessee earned profits from the solar unit, incurred loss from the manufacturing unit, and had positive income from house property and other sources. The assessee claimed deduction of Rs. 49,28,566/- under section 80IA(4)(iv) in respect of profits derived from the solar power unit. The return of income was filed by the assessee within the extended due date of 15th March, 2022. The audit report in Form No.10CCB was required to be filed before one month from the last date of filing the return of income. Accordingly, the extended due date for filing the audit report was 15.02.2022. However, the audit report though signed before the due date, was uploaded on 23.02.2022, i.e., after the statutory due date but before the extended due date of filing of return. The CPC, Bangalore while processing the return under section....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Appeal No. 3327 of 2007) that : " .. Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification." Thus in view of the above decision of the Hon'ble Supreme Court, the deduction u/s 80IA of the Act is also to be interpreted strictly. 4.6. In view of the above, the Order u/s 143(1) of the Act passed by the CPC in the instant case, denying the deduction u/s 80IA of the Act, due to failure of the Appellant to furnish the Audit Report in Form 10CCB within the prescribed time limits, is confirmed. The Grounds filed by the appellant are dismissed. 8. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal. The Ld. AR submitted that, the return of income was filed after facing technical issues in the income-tax e-filing portal within the extended due date of 15th March, 2022. The audit report in Form No.10CCB was required to be filed before one month from the last date of filing the return of income. Accordingly, the extended due date for filing the audit report was 15.02.2022. However, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bmitted that the Hon'ble Courts have held that audit report can be filed any time before assessment and that technical delay should not prejudice substantive claim. The Ld. AR further argued that the amendment made by the Finance Act, 2020 to section 80IA(7) is procedural and should not operate to deny genuine deduction, particularly in view of CBDT's extensions and technical glitches. 10. Per contra, the Ld. DR invited our attention to section 80IA(7) of the Act as amended by the Finance Act, 2020 w.e.f. 01.04.2020. He submitted that the amended provision mandates that for claiming deduction, the assessee must furnish the audit report in prescribed form on or before the specified due date. He further submitted that the extended due date for filing the audit report was 15.02.2022 and the audit report have been uploaded by the assessee on 23.02.2022 i.e. after the specified due date. He also submitted that unlike earlier judicial interpretations, the amendment has made the requirement mandatory. The Ld. DR emphasized that all the case law relied upon by the Ld. AR pertains to periods prior to the amendment, and therefore they are not applicable to assessment year 2021-22.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....igible. In the present case before us, there is no dispute by the Revenue regarding the eligibility of the assessee's claim under section 80IA; the only dispute that remains is whether the principles laid down by the various Courts continue to apply even after the amendment made by the Finance Act, 2020 with effect from 01.04.2020. In this regard, We have gone through the provisions of section 80IA(7) of the Act as amended by the Finance Act, 2020 w.e.f. 01.04.2020, which is to the following effect : "Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. 80IA. (1) to (6).......... (7) The deduction under sub-section (1) from profits and gains derived from an undertaking shall not be admissible unless the accounts of the undertaking for the previous year relevant to the assessment year for which the deduction is claimed have been audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, 3º[before the specified date referred to in section 44AB and the assessee furnishes by that date] the report of such audit in the prescribed fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation below sub-section (2) of section 288, and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant." 16. On perusal of the provisions of section 80IA(7) of the Act as it stood prior to 01.04.2020, we find that the requirement was that the assessee should furnish audit report along with the return of income. Similarly, under section 80AC of the Act, for claiming deduction under section 80IA, filing of return of income before due date prescribed under section 139(1) was mandatory. The provisions of section 80AC are reproduced as under for ready reference : "Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80IA or section 80IAB or section 80IB or section 80IC or section 80ID or section 80IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading ....