Bhagwan Precision Vs ACIT (ITAT Delhi)
Section 80IC Deduction cannot be denied merely for delay in filing Form 10CCB – Audit Report Filing held Directory, Not Mandatory
Delhi ITAT has held that deduction u/s 80IC cannot be denied merely because Form 10CCB was not filed along with the original return of income, as long as the deduction was claimed in the return filed within due date & the audit report was submitted before completion of assessment.
Assessee , a partnership firm engaged in manufacturing of precision turned parts from its Haridwar unit, claimed deduction of ₹84,36,767 u/s 80IC for AY 2017–18. Original return was filed on 21.10.2017 (within due date) declaring income of ₹2.53 crore after claiming 80IC deduction. Form 3CB-3CD (u/s 44AB) & Form 10CCB (u/s 80IC) were prepared on 02.08.2017 but Form 10CCB was not uploaded with the original return. To correct the lapse, assessee filed a revised return along with Form 10CCB. However, the CPC Bengaluru while processing u/s 143(1) rejected the 80IC claim, citing non-filing of Form 10CCB with the original return. The CIT(A) confirmed this denial.
Before the Tribunal, Assessee contended that deduction u/s 80IC was claimed in the original return filed u/s 139(1) within time. Revised return was filed only to upload audit report; figures of income remained unchanged. Filing Form 10CCB with the return is directory, not mandatory, so long as it is filed before assessment is completed. Tribunal relied on multiple judicial precedents including CIT v. Contimeters Electricals Pvt. Ltd. (Delhi HC), where similar view was upheld.
