Assessee filed Form 10CCB before Completion of the 143(1) proceedings: ITAT allows Assessee’s Appeal [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal, noting that the assessee had filed Form 10CCB before the completion of the proceedings under Section 143(1) of the Income Tax Act, 1961.

The assessee has appealed against the order of the Commissioner of Income Tax Appeals [CIT(A)] for the assessment year (AY) 2018-19.

In this case, for the AY 2018-19, the assessee had filed its original income return on 23-10-2018. The company claimed a deduction under Section 80IC of the Income Tax Act, which provides tax benefits to businesses operating in certain specified regions, including backward areas.

Unfortunately, the company submitted Form 10CCB, a mandatory audit report required to claim the deduction, on 5-11-2018, five days after the due date for filing the return. After that, the company revised its income return, and the Central Processing Centre (CPC) completed the assessment under Section 143(1) without allowing the deduction under Section 80IC, citing the delayed submission of Form 10CCB.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

Although the assessee had appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], the latter upheld the Assessing Officer’s decision. The assessee approached the ITAT for relief.

The assessee’s counsel contended that the company had obtained the audit report before filing the income return and submitted Form 10CCB before the completion of Section 143(1) of the Income Tax Act, 1961 assessment. The counsel relied on several case laws, including the ITAT Delhi’s decision in ACIT vs . Green Dot Health Foods Pvt. Ltd. in ITA No.8414/Del/2019, where a similar delay in filing Form 10CCB was condoned, and the deduction was allowed. The counsel submitted that the delay was merely procedural and did not warrant the denial of the deduction.

The Revenue’s counsel contended that the rules governing the filing of Form 10CCB must be strictly followed, and any contravention should result in the denial of benefits.

The ITAT observed that the assessee had indeed obtained the audit report before filing the income return and submitted Form 10CCB before the completion of the Section 143(1) assessment. The tribunal noted that the delay in filing the form was a procedural lapse and did not justify the denial of the deduction.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The ITAT, comprising Sudhir Pareek (Judicial Member) and S. Rifaur Rahman (Accountant Member), allowed the assessee’s appeal.

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