2026 (5) TMI 85

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....e order passed u/s 154 of Income Tax Act, 1961 (in short 'Act') dated 03.07.2024. 2. Brief facts of the case are that the assessee is engaged in the business of manufacturing plastic components filed its return of income for the A.Y. 2020-21 within the extended due date specified u/s 139(1) of the Act i.e. 11.02.2021 admitting a total income of Rs. 1,97,78,660/- after claiming deduction u/s 80IC of the Act for Rs. 84,35,493/-. The assessee obtained the audit report in Form 10CCB within the specified date u/s 44AB of the Act but filed on 11.02.2021 along with the return of income. The return was summarily processed by the CPC u/s 143(1) of the Act on 24.12.2021 by disallowing the deduction claimed u/s 80IC for the reason that assessee did....

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....us judicial pronouncements have consistently held that belated filing of audit report in Form 10CCB could not be fatal and being a ground of disallowance u/s 80IC of the Act. The ld AR relied on the Co-ordinate Bench of Delhi in the case of Bhagwan Precision vs ACIT Rohtak in ITA No.5174/DEL/2024. He therefore prayed for deletion of the disallowance. 7. Per contra the ld DR fully supporting the order of the CPC stated that the CPC had justified in denying the claim of deduction u/s 80IC of the Act in the absence of filing the Form 10CCB within the due date specified u/s 139(1) of the Act. 8. We have heard rival contentions and perused the material available on record. It is an undisputed fact that the assessee filed the return of inco....

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....by the Assessing Officer was prejudicial to the interest of the revenue and that it was erroneous in as much as the assessee had not satisfied the conditions laid down under Section 80IA and consequently the deduction under that section for the sum of Rs 14,27,351/- had been wrongly allowed. The CIT(A), therefore, cancelled the assessment which had been earlier framed and directed the Assessing Officer to complete the assessment as per law, in terms of the directions given in the said order. Being aggrieved by the said order, the assessee preferred an appeal before the Tribunal which was allowed by the Tribunal by virtue of the impugned order. The Tribunal took the view that the provisions of section 80IA(7) with regard to filing of the aud....