Desai Infra Projects (I) Private Limited Vs CIT (Appeals) (ITAT Pune)
Conclusion: Deduction under section 80IA(4) couldn’t be denied solely due to the delayed filing of Form 10CCB, as the audit report was filed before the return was processed.
Held: Assessee-company had filed its return reporting a total income of Rs. 6,41,73,900/- after claiming a Rs. 3,42,22,700/- deduction under section 80IA(4)(i). Centralized Processing Center(CPC) processed the return and issued an intimation under section 143(1), increasing the total income to Rs. 9,83,96,600/- by disallowing the deduction. Assessee argued before CIT (A) that due to technical issues with the e-filing portal, it was unable to file Form 10CCB by the extended due date of 07.10.2022 and only submitted it on 31.10.2022. Assessee contended that the tax audit report was filed on time and Unique Document Identification Number(UDIN) was obtained on 07.10.2022. However, the form could not be assigned to the auditor in time due to portal issues. Assessee relied on previous decisions, claiming the CPC was wrong to reject the deduction claim under section 80IA(4). CIT(A) dismissed assessee’s arguments, stating that the delay was due to assessee’s own actions and not technical issues. Since Form 10CCB was not filed within the prescribed time, assessee was not eligible for the deduction. CIT(A) also held that the CPC was correct in making the adjustment under section 143(1)(a)(ii). Assessee appealed to the Tribunal against the CIT(A)’s order. It was held that admittedly, assessee filed the audit report in Form-10CCB prior to the processing of the return, therefore, respectfully following the decisions in Natesan Precision Components Private Limited, Chennai vs. DCIT in ITA.No.1397/Chny/2024, Tarasafe International (P.) Ltd., vs. DDIT, CPC , it was concluded that assessee could not be denied deduction u/sec.80IA(4). Accordingly, the order of CIT(A) was reversed and the grounds raised by assessee were allowed.
