2025 (12) TMI 195

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....ar 2023-24. 2. Shri Y K Sud, appearing on behalf of the assessee submits that the short issue in present appeal is disallowance of assessee's claim of deduction u/s.80IAC of the Income Tax Act,1961(hereinafter referred to as 'the Act'). He submitted that the assessee is engaged in the business of Interior design, architectural advisory services, management consulting, etc. For assessment year 2023-24, the assessee filed its return of income on 30.11.2023 claiming deduction u/s.80IAC amounting to Rs. 18,57,30,737/-. The assessee calculated its book profits u/s. 115JB and offered Rs. 18,43,88,071/- to tax. The return of the assessee was processed u/s.143(1) of the Act. While processing return of income, the CPC pointed out deficiency vide ....

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....eturn of income, it suffices the legal requirement. In support of his submissions, he placed reliance on various decisions some of them are as under:- CIT vs. Gupta Fabs, 274 ITR 620 (P&H); CIT vs. Contimeters Electrical P Ltd., 317 ITR 249 (Delhi.); Sanjay Kukreja vs. ACIT, in ITA No. 652/Del/2023 for AY 2019-20 decided on 30.01.2024; Kumaon Exports P Ltd., vs. DCIT in ITA No. 39/Del/2024 for AY 2018-19 decided on 05.12.2024; & Desai Infra Projects (I) P. Ltd. vs. CIT, 234 TTJ (Pune) 879. 3. Per contra, Ms. Monika Singh representing the department vehemently defended the impugned order. The ld. DR submits that provisions of section 80IA(7) of the Act have been amended by the Finance Act, 2020. Prior t....

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....ur consideration in the present appeal is; Whether the assessee is eligible to claim deduction u/s.80IAC of the Act, where the Audit Report in the prescribed form has been filed beyond the specified date but before the completion of assessment? 5. Assessment Year 2023-24 is the first year of assessee's claim of deduction u/s.80IAC of the Act. Apart from fulfilling the conditions set out in sub section (1), sub section (3) and sub section (4) of section 80IAC of the Act, the assessee is also required to comply with the provisions of section 80IA(7) of the Act to be eligible to claim deduction. Section 80IA(7) of the Act mandates that deduction under sub section (1) from profits and gains derived from undertaking shall not be admissible un....

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....the same has not been filed with return of income but was filed before the final order of assessment was made, the assessee was entitled to claim deduction u/s. 80IB of the Act. We find that similar view has been taken by the Hon'ble Jurisdictional High Court in the case of CIT vs. Contimeters Electrical P Ltd. (supra) and the Co-ordinate Bench of the Tribunal in the case of Sanjay Kukreja vs. ACIT (supra), Kumaon Exports P Ltd., vs. DCIT (supra) and in various other decisions by the Tribunal. 7. The ld. DR has emphasized that the provision of section 80IA(7) have been amended by the Finance Act, 2020 and post amendment the provisions regarding furnishing of Audit Report has changed. Her contention is that post amendment the leverage ....