2026 (3) TMI 806

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....e has taken the following grounds of appeal: "1. On the facts and circumstances of the cased as well as law on the subject, the Ld. CIT(A) has erred in confirming the disallowance of Rs. 55,10,800/- under section 80-IAC on the ground of delayed filing of Form 10CCB, without appreciating that the audit report was filed on the same day as the return of income and all substantive conditions were duly fulfilled. 2. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has grossly in confirming the adjustment under section 143(1), which the limited jurisdiction contemplated under the I said provision by applying it to a disputed arid debatable issue, instead of confining it to prima facie erro....

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....ompanies Act, 2013. For the Assessment Year 2024-25, the assessee filed its return of income on 15.11.2024 declaring total income of Rs.79,130/- after claiming deduction of Rs.55,10,805/- under section 80-IAC of the Income Tax Act, 1961 ("the Act"). The return of income was processed by the Centralized Processing Centre (CPC), Bangalore under section 143(1) of the Act vide intimation dated 02.06.2025. While processing the return, the CPC disallowed the deduction of Rs.55,10,805/- claimed under section 80-IAC of the Act on the ground that the audit report in Form No. 10CCB had not been furnished within the time prescribed under the provisions of the Act, namely one month prior to the due date of filing the return of income under section 139(....

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.... assessee had failed to comply with the said requirement, the learned CIT(Appeals) held that the action of the CPC in denying the deduction claimed under section 80-IAC was in accordance with law and accordingly dismissed the grounds raised by the assessee. Accordingly, the appeal of the assessee was dismissed. 6. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. 7. We have carefully considered the rival submissions and perused the material available on record. The core issue involved in the present appeal relates to the disallowance of deduction of Rs.55,10,805/- claimed by the assessee under section 80-IAC of the Act at the stage of processing of return under section ....

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....be treated as a fatal defect for denying exemption. 12. The Pune Bench of the Tribunal in Bible Fellowship Centre Wagholi vs. Income Tax Officer [2025] 180 taxmann.com 136 (Pune - Trib.) dated 31-10-2025 also held that delay in filing audit report in Form No. 10B is directory in nature and such report can even be furnished at the appellate stage. Therefore, denial of exemption merely on the ground of delay in filing the audit report was held to be unjustified. 13. Further, the Delhi Bench of the Tribunal in Puran Chand Arora Charitable Trust vs. Income-tax Officer, Exemption [2025] 172 taxmann.com 161 (Delhi - Trib.) / [2025] 211 ITD 678 (Delhi - Trib.) dated 22-01-2025 held that where audit report in Form No. 10B was filed belatedly ....