Deepa Jhunjhunwala Vs ITO (ITAT Kolkata)
CPC’s Adjustment Without Hearing Violates Law – ITAT Guwahati Grants 80IE Deduction for Late Form Filing
Assessee, engaged in business eligible for deduction u/s 80IE, faced disallowance by CPC while processing returns for AYs 2016-17 & 2017-18. CPC denied deduction on two grounds — (i) adjustment made without prior intimation u/s 143(1)(a), & (ii) belated filing of audit report in Form 10CCB.
Before Tribunal, the Assessee contended that CPC made adjustments without giving opportunity of being heard, contrary to the proviso to section 143(1)(a), & that delay in Form 10CCB filing was directory, not fatal.
AY 2016-17
Relying on Sri Kailash Modi (ITA No. 296/Gty/2018), Tribunal held that no adjustment can be made u/s 143(1)(a) without prior intimation to the assessee. As the record did not clarify whether such intimation was given, the matter was remanded to CIT(A) to verify this fact, with direction that if no intimation was issued, the adjustment must be deleted.
AY 2017-18
Tribunal noted that the audit report in Form 10CCB was filed before CPC processed the return, though belatedly. Referring to Hitech Systems & Services Ltd. (ITA 1318/Gty/2024), Desai Infra Projects (Pune ITAT) & GM Knitting Industries (SC), ITAT held that filing of audit report before completion of assessment is sufficient compliance, since such requirement is directory, not mandatory.
