Denial of Deduction u/s 80-IA not justified on grounds of delay in filing revised IT Return: ITAT allows Income Tax Deduction [Read Order]

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) comprising Mahavir Singh and Manoj Kumar Aggarwal held that, the assessee was eligible to claim the deduction u/s 80-IA in favour of assessee, M/s. Swiss Park Vanijya India Pvt. Ltd. and directed the Centralised Processing Center (CPC), Bangalore to grant this deduction.

The assessee is engaged in generation and distribution of electricity. The original return was filed on 31.10.2019 after claiming deduction u/s 80-IA for Rs.93.18 Lacs. However, the required Form No.10CCB was not filed with this return of income. The assessee filed revised return of income on 22.11.2019 after having filed its Audit Report in Form 10CCB on 21.11.2019. This return was again revised on 20.10.2020 to make a depreciation claim. The CPC, however, dismissed both the deduction as well as depreciation claims.

The appeal to the CIT(A) was ruled against the assessee, on the ground that such form was to be furnished along with return of income within the due date.

The Tribunal observed that, the assessee has made claim u/s 80-IA in the original return of income as well as in the revised return of income filed subsequently. The only reason to deny the deduction is the fact that the assessee did not upload Form No.10CCB along with original return of income and the same was filed along with revised return of income.

In this case, accounts should have been audited and the assessee has to furnish the Audit Report in the prescribed form, along with the return of income. The assessee has filed the Form No.10CCB along with revised return of income which has been processed by CPC, Bangalore.

Referring to CIT v. ACE Multi Axes Systems (P.) LTD. [2009], wherein it was held that when a relief is sought for under Section 80IB of the Act, there is no obligation on the part of the assessee to file return accompanied by the audit report, the appellate authority held in favour of the assessee that, after considering the ratio of CIT v. Contimeters Electricals (P.) Ltd. [2009] that the appellant was eligible to claim the deduction u/s 80-IA.

To Read the full text of the Order CLICK HERE

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