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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
Before: SHRI KULDIP SINGH & SHRI GAGAN GOYAL
Per : Kuldip Singh, Judicial Member:
The appellant, DCIT-22(1), Mumbai (hereinafter referred to as ‘the Revenue’) by filing the present appeal, sought to set aside the impugned order dated 20.12.2022 passed by the National Faceless Appeal Centre (NFAC) [Commissioner of Income Tax (Appeals), Delhi] (hereinafter referred to as CIT(A)] qua the assessment year 2017-18 on the grounds inter-alia that :- 1. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the deduction claimed by the assessee u/s 80IC amounting to Rs. 1,62,62,4637- without considering the fact that Form No 10CCB was not uploaded along with the return of income which is mandatory requirement."
2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the assessee failed to offer a cogent explanation for failing to upload the Form lOCCb in time."
The appellant prays that the order of the National Faceless Appeal Centre (NFAC), Delhi on the above grounds be reversed and that of the Assessing Officer be restored.”
Briefly stated facts necessary for consideration and adjudication of the issues at hand are: the assessee is into manufacturing at Baddi in the state of Himachal Pradesh claiming deduction u/s 80IC of the Income Tax Act, 1961 (for short the Act) since AY 2010-11. During the year under consideration the assessee filed return of its income within prescribed period which was processed on 12.12.2018 by disallowing the deduction of Rs. 1,62,62,463/- claimed by the assessee u/s 80IC of the Act because the assessee had not uploaded its audit report in Form 10CCB, which was actually uploaded on 18.09.2018. The CPC/ AO thereby framed the assessment u/s 143(1) of the Act.
3. The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has deleted the disallowance made by the AO by allowing the appeal filed by the assessee. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the revenue has come up before the Tribunal by way the filing present appeal. 4. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 5. Undisputedly, the assessee is entitled for deduction u/s 80IC for the year under consideration having its unit set up at Baddi in Himachal Pradesh. It is also not in dispute that the return of income filed by the assessee was processed u/s 143(1) of the Act and without issuing any notice to the assessee CPC disallowed the deduction claimed by the assessee u/s 80IC of the Act on the ground that separate report in Form 10CCB was not uploaded along with return of income. It is also not in dispute that both the audit report in Form 3CD along with Form 10CCB uploaded on 18.09.2018 within prescribed period.
In the backdrop of the aforesaid undisputed facts the short question arises for determination in this case is “as to whether CPC/AO is empowered to disallow the deduction claimed by the assessee u/s 80IC of the Act otherwise admissible on merit, merely on account of not filing audit report in Form 10CCB along with return”.
The assessee uploaded audit report on the portal of Income Tax on 18.09.2018 i.e. prior to processing of the return on 12.12.2018. CPC has not considered the same while processing the return and thereby disallowed the claim of the assessee u/s 80Ic of the Act.
We have perused the impugned order passed by the Ld. CIT(A) deleting the disallowances made by the AO/ CPC u/s 80IC of the Act claimed by the assessee who has duly thrashed the facts in the light of the law applicable thereto and reached the conclusion that the assessee was otherwise found entitled for deduction u/s 80IC of the Act but for not uploading the audit report in Form 10CCB by the assessee due the inadvertent or negligence the same cannot be disallowed.
We are of the considered view that when there is no delay in getting the tax audit report by the assessee, the delay in uploading the same in Form 10CCB is not a ground to disallow the deduction otherwise admissible to the assessee. Reason for not uploading audit report by the assessee along with return of income as set out in the appeal is the tax advisor of the assessee was not aware of the new requirement of uploading the audit report on IT portal but a copy thereof was physically filed on 31.10.2018 and was handed over to the AO, is plausible one.
Moreover, the proviso to section 143(1) of the Act specifically provides that no adjustment shall be made unless (as specified in clause A to section 143(1) of the Act) intimation is given to the assessee either in physical or in electronic mode and in any case response is not received within 30 days the adjustment can be made. So in this case no notice whatsoever was given, so we are of the considered view that when audit report in Form 10CCB has been got prepared well within time and filed physically, mere non filing of the same on the IT portal is not a ground to disallow the deduction otherwise admissible to the assessee. So finding no illegality or perversity in the impugned order passed by the Ld. CIT(A) appeal filed by the revenue is hereby dismissed.
Resultantly, appeal filed by the revenue is dismissed.
Order pronounced in the open court on 19.05.2023.