INCOME TAX ACT, 1961

Section 80-IB read with Section 143(1)

Deduction under section 80-IB - Allowability - Disallowing due to incomplete filing of Form 10CCB along with return of income -

Assessee challenged the order under section 143(1) passed by DCIT, CPC, Bangalore before CIT (Appeals). He claimed the claim of deduction under section 80-IB amounting to Rs. 2,71,654 was denied to him and further there was an adjustment of Rs. 9,672 made by the CPC Bangalore without any intimation by CPC Bangalore before making the adjustment at the correct e-mail address and the intimation given in the electronic mode was not as provided in law. CIT (Appeals) held that the intimation letter was based on the data provided by assessee as it picked up the email address therefrom. Therefore, there was no scope for using any imaginary address. The next claim for the dispute was with respect to the adjustment of Rs. 2,71,654 which was made on account of non-filing of the form number 10CCB along with the return of income or filing it beyond the due date of filing of the return. The issue arose for consideration was whether incomplete filing of Form 10CCB with the return of income could be made a ground for disallowing the claim of deduction. Held: It was apparent that as on the due date of filing of the return, assessee did not file audit report in form No. 10 CCB for claiming deduction under section 80-IB(11B), therefore, deduction was rightly denied to assessee. Assessee was also aware about the same because it had filed the audit report on 6-11-2017 but did not care to accept the same till 12-12-2017.Therefore, even without any intimation, assessee approved the form 10CCB uploaded by the Accountant on 6-11-2017 on 12-12-2017. Therefore, it was not correct to say that assessee was unaware about the procedure of filing of the audit report. After introduction of the electronic filing of the return of income as well as all other documents, there was no debate available that even if the audit report was filed before the assessment was made, same was acceptable and the deduction could not be denied to assessee. When selection of the cases for further scrutiny, processing of the return of income, claim of the refunds of assessee or all determined based on the return filed by assessee and when the provisions of the law and the relevant rules strictly provided that all necessary documents must be filed and approved along with the return of income or prior to that, subsequent filing of any document could not be considered for processing of the return and intimation under section 143 (1A). Thus, there was no infirmity either in the procedure or in passing of intimation under section 143 (1A) of the act as well as in denying deduction under section 80 IB to assessee for non-filing of the audit report in electronic manner in time (on or before the due date of filing of the return of income) as prescribed under income tax rules and having the mandate of the provisions of Section 80 IB(11B)(iv).

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2017-18

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