Mulakala Mohan Krishna Vs DCIT (ITAT Hyderabad)
80IA Deduction Cannot Be Denied for Delay of Few Days in Uploading Audit Report – Procedural Requirement Not Substantive- ITAT Hyderabad
Assessee, proprietor of M/s. Sarvotham Care, had two units – a solar power generation unit eligible for deduction u/s 80-IA(4)(iv) & a manufacturing unit.
For A.Y. 2021-22, he claimed deduction of ₹49.28 lakh u/s 80-IA on profits from the solar unit.
- Return of income filed within the extended due date (15 March 2022).
- Form 10CCB audit report was signed before 15 Feb 2022 but uploaded on 23 Feb 2022, i.e., after the prescribed “specified date” (one month before return-filing due date).
- CPC, Bengaluru disallowed the deduction u/s 143(1), holding that the audit report was not filed within time.
CIT(A), Chennai (NFAC), upheld CPC’s action, observing that compliance with section 80IA(7) is mandatory after the 2020 amendment.
Assessee’s Submissions
- Audit report was duly obtained before the due date; only portal-upload was delayed by 8 days due to technical glitches on the new e-filing portal.
- Report was on record before return filing & before CPC processing.
- Filing requirement is procedural; genuine deduction cannot be denied for a minor technical delay.
- Relied on several judicial precedents including:
- G.M. Knitting Industries Pvt. Ltd. (SC) 71 Taxmann.com 35
- Mahalakshmi Rice Factory 294 ITR 631 (P&H)
- Sutures India (P) Ltd. 125 Taxmann.com 226 (Karn.)
- ACE Multitaxes Systems (P) Ltd. 317 ITR 207 (Karn.)
- Contimeters Electricals (P) Ltd. 317 ITR 249 (Del.)
- AKS Alloys (P) Ltd. 18 Taxmann.com 25 (Mad.)
- Aprameya Engg. Ltd. 164 Taxmann.com 740 (Ahd.)
- Krushi Vibhag Karmchari Pat Sanstha Maryadit 147 Taxmann.com 449 (Nag.)
Revenue’s Arguments
- Post-Finance Act 2020, s. 80IA(7) mandates that the audit report must be furnished “by the specified date” (one month before s. 139(1) due date).
- Delay beyond that makes the claim invalid.
- Old precedents are pre-amendment & no longer apply.
Tribunal’s Findings
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