Niteshkumar J. Shah Vs DCIT (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad, in the case of Niteshkumar J. Shah Vs. Deputy Commissioner of Income Tax (DCIT), ruled on the disallowance of a deduction under Section 80-IA due to the delayed filing of Form 10CCB. The case stemmed from the Centralized Processing Centre’s (CPC) rejection of the assessee’s deduction claim of ₹19,39,565 for the Assessment Year 2017-18, as Form 10CCB was submitted after the prescribed due date. The National Faceless Appeal Centre (NFAC) upheld the CPC’s decision, citing Rule 12(2) of the Income Tax Rules and Section 80IA(7) of the Income Tax Act, which require the audit report to be filed along with the return of income.
In appeal, the assessee contended that the requirement to file Form 10CCB along with the return was procedural and not mandatory. The assessee relied on various judicial precedents, including CIT vs. Contimeters Electricals (P) Ltd. [(2009) 317 ITR 249 (Delhi)], where the Delhi High Court held that the filing of an audit report with the return was directory rather than mandatory. However, CIT(A) dismissed the appeal, distinguishing the case law cited and asserting that Section 80-IA(7) explicitly mandates the filing of the audit report along with the return for claiming deductions. The CIT(A) also referred to rulings such as DCIT vs. Tide Water Oil Co. (I) Ltd. (ITAT Kolkata) and CIT vs. ACE Multitaxes Systems (P) Ltd. [(2009) 317 ITR 207 (Karnataka)], which upheld strict compliance with filing requirements.
