Kanchenjunga Distilleries & Liquors Vs DCIT (ITAT Kolkata)
Late Audit Report No Bar -Substance Over Form – ITAT Kolkata Deletes Disallowance of ₹2.07 Cr for Belated Form 10CCB
Assessee filed return of income on 22.12.2021 declaring nil income after claiming deduction of ₹2.07 crore u/s 80IE. The extended due date for return filing was 15.03.2022 & the return was filed within time. However, audit report in Form 10CCB was uploaded belatedly on 17.10.2022. CPC disallowed the deduction while processing return u/s 143(1), treating late filing of Form 10CCB as fatal. CIT(A) upheld the disallowance.
Before Tribunal, Assessee argued that filing of Form 10CCB is a procedural requirement, and since it was submitted before the date of processing of return, deduction cannot be denied. Reliance was placed on CIT v. G.M. Knitting Industries (P.) Ltd. (376 ITR 456 SC) where it was held that late filing of Form 10CCB cured during assessment sufficient compliance. In Winro Commercial (India) Ltd. v. PCIT (457 ITR 418 Cal HC it was held that belated Form 10CCB filing is curable defect, does not disentitle deduction u/s 80IA.
Tribunal held that since the return was filed in time & Form 10CCB was uploaded before order u/s 143(1), compliance was sufficient. Disallowance based purely on delay in uploading audit report was not sustainable, being a procedural lapse.
