TaxTMI 
TaxTMI 
2026 (3) TMI 1171
X X X X Extracts X X X X
X X X X Extracts X X X X
....f Healthcare & Lifesciences Industry & Medical Devices/ Bio Medical Sector. After incorporation, the assessee company started the business of Biomedical and Medical Devices and producing Covid Testing Kits and has duly filed Income Tax Return for AY 2023-24 vide Acknowledgement No. 49424911311023 dated 31.10.2023 within due date 31/10/2023 wherein declared NIL income after claiming deduction amounting to Rs. 3,56,22,482/- u/s 80IAC of Income Tax Act, 1961. 5. The assessee company has been recognized as Startup by the Department for Promotion of Industry and Internal Trade and a Certificate of Recognition has been duly issued to the assessee company by Government of India, Ministry of Commerce & Industry Department for Promotion of Industry & Internal Trade vide Certificate No DIPP62084 issued on 06.08.2020 and valid up to 03.12.2029. 6. That assessee company has duly mentioned Recognition Number of Start Up allotted by DPIIT at Serial No. Q of Filing Status of ITR-6 of return of Income Tax, which has been considered in intimation u/s 143(1) dated 30/04/2024 .The accounts of the assessee were duly audited as per provision of the Act. The deduction of Rs. 3,56,22,482/- claimed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rement to file audit report in Form 10CCB is prescribed only for claiming deduction u/s 80I or 80IA or 80IB or 80IC and not for the section 80IAC. Rule 12(2) of Income Tax Rules, also does not refer to furnishing such Form for claiming deduction u/s 80IAC. f) It was submitted before Ld. CIT(A) that, without prejudice to the above, even if Rule 18BBB is assumed to be applicable in respect of start-ups claiming deduction u/s 80IAC, the Form 10CCB, that has been prescribed in Official Gazette vide Notification No. 43/2005 dated 04.02.2005, the same contains no field/column for claiming deduction u/s 80IAC g) It was submitted before Ld. CIT(A) that the Form 10CCB, as prescribed in Official Gazette, refers only to the provisions of section 80I, 80IA, 80IB and 80IC. There is no field/column whatsoever in the said form for auditor to certify regarding deduction claimed u/s 80IAC. Therefore, in absence of any Form 10CCB, having been notified or updated by Rule making authority, so as to incorporate the details of deduction under section 80IAC, there is legal impossibility to file such form in respect of startups claiming deduction u/s 80IAC h) During appellate pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion 44AB in clause 33 and thus, thus, (a) there is certification on the eligibility from the Tax Auditor, (b) there is no dispute on the eligibility of the Assessee and (c) there is also compliance with the provision of section 80IA(7) to the extent applicable m) It was submitted before Ld. CIT(A) that, without prejudice to the above, the issue of submission of Form 10CCB is a procedural issue and the same should not be a ground to deny deduction under section 80IAC in absence of any allegation that the Assessee does not comply with the conditions. n) It was submitted before Ld. CIT(A) that, without prejudice to the above, it is a settled law that filing of Form 10CCB is directory and not mandatory for claiming deduction under section 80IAC and thus, the disallowance is not warranted. Assessee relied upon several judicial precedents in this regard as under: i) CIT vs G M Knitting Industries (P) Ltd [2015] 376 ITR 456 (SC) ii) CIT vs Contiments Electricals (P) Ltd [2009] 317 ITR 249 (Delhi) iii) Marudhamalai Sri Dhandapani Spinning Mills vs DCIT, ITA No 11/Chny/2023 dated 06.04.2023 (ITAT, Chennai) iv) DCIT vs Jupiter Metal Indu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he furnishing of Form No. 10CCB made applicable to the assessee claiming deduction under section 80IAC, the furnishing of audit report in Form 10CCB within specified date is mandatory for claiming deduction under section 80IAC also. So, it is incorrect to say that the furnishing of Form 10CCB has not been prescribed under section 80IAC r.w.s 80IA of the Act and Rule 18BBB of the Rules. 5.4 So far as the contention of the appellant that there is no column in Form 10CCB regarding deduction under 80IAC is concerned, the same is not tenable. As per relevant provisions of the Act and Rules as reproduced above, the appellant was required to furnish audit report in Form 10CCB. The appellant ought to have filled the form to the extent applicable to it and furnish the same online. But, the appellant has not furnished the same and has also not placed any document or evidence to show that the online facility provided by the Income-tax Department did not allow him to furnish the Form 10CCB so filled by him. In view of these facts and legal position, the action of the CPC in disallowing the deduction claimed under section 80IAC is valid and as per provisions of law. 11. Aggrieved wi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ubmissions and material placed on record, before us, Ld. AR of the assessee submitted that the Assessing Officer under Section 143(1)(a)(ii) proceedings has disallowed the deductions claimed by the assessee u/s 80IAC of the Act for the reason that assessee has not filed the Form 10CCB which was not filed or not filed within the due date. 15. In this regard, assessee has submitted that even though there is a requirement for the assessee to file the Form 10CCB before filing the return of income or along with the return of income but CBDT has not amended the Form 10CCB to accommodate the deductions claimed by the assessee u/s 80IAC of the Act. That being the case the Form 10CCB is not applicable in the case of the assessee and he objected to the findings of the Ld. CIT(A) in confirming the disallowances. 16. He further submitted that assessee is a certified start up Company from the department for Promotion of Industry and Internal Trade which is valid for 10 years upto 03.12.2019 and he also relied on the several decisions wherein it was held that filing the Form 10CCB is only the directory in nature, therefore, the claim of the assessee cannot be denied. 17. After consideri....