CICAGO COMMODITIES PVT. LTD.,KOLKATA vs. ACIT, CIRCLE 1(1), KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘A’ BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.994/KOL/2025 Assessment Year:(2018-19) Cicago Commodities Pvt. Ltd., ACIT, 18, Rabindra Sarani, Poddar Court, Vs. Circle – 1(1), Gate No.2, Office No.3A, 7th Floor, Kolkata Kolkata – 700001, West Bengal [PAN: AACCC0176A] (Appellant) .. (Respondent) Appellant by : Shri Abhishek Bansal, FCA Respondent by: Ms Kasturi Chakraborty, Sr. DR Date of Hearing 23.07.2026 Date of Pronouncement 01.09.2026 O R D E R PER RAJESH KUMAR, ACCOUNTANT MEMBER: This appeal preferred by the assessee is against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi(hereinafter referred to as the “ld.CIT(A)”], dated 18.03.2025 for Assessment Year (AY) 2018-19.

ITA No.994/Kol/2025/A.Y.2018-19 Cicago Commodities Pvt. Ltd. vs. ACIT 3. The facts of the case in brief are that the assessee filed return of income u/s 139(1) of the Act on 30.10.2018, declaring total income of Rs.46,09,370/-. The case of the assessee was selected for complete scrutiny under e-assessment scheme for examination of deduction claimed for industrial undertaking u/s 80IA of the Act. Accordingly, notices u/s 143(2) and 142(1) of the Act along with questionnaire were issued and served upon the assessee. The assessee uploaded the online responses to the notices issued u/s 142(1) of the Act. The AO observed from the return of income that assessee has claimed deduction u/s 80IA(4) of the Act amounting to Rs.59,03,094/-. The AO noted from the online responses that assessee has claimed receipts from sale of solar energy plant as deduction u/s 80IA(4) of the Act. Thereafter, the AO noted that assessee nowhere in its online submissions has uploaded audit report as prescribed as per provisions of section 80IA(7) of the Act, documents and agreements, so far as the deduction u/s 80IA(4) of the Act is concerned and consequently disallowed the said claim of the assessee.

“7. The submissions of the appellant have been carefully considered. It is seen that the appellant is engaged in the activity of generation of solar power and has claimed deduction u/s 801A(4)(iv) of the Act. As per the provisions of section 801A(7) the deduction u/s 801A shall not be admissible unless the accounts are audited by an accountant before the specified date referred to in

ITA No.994/Kol/2025/A.Y.2018-19 Cicago Commodities Pvt. Ltd. vs. ACIT section 44AB and the audit report in the prescribed format is furnished by that date. However, in the instant case, it is seen that the appellant failed to furnish the audit report in Form 10CCB within the specified date. The appellant neither furnished the audit report within the specified date nor before the completion assessment proceedings. The appellant submitted the audit report in Form 10CCB only on 27-03-2021 which is well after the completion of the assessment proceedings. Various courts have held that the claim for deduction under chapter VIA be allowed if the audit report is filed before the assessing Officer even during the course of the assessment proceedings. However, in the instant case the appellant neither filed the report within the specified time nor during the course of the assessment proceedings. It is only after the completion of the assessment proceedings and before the start of the appellate proceedings the appellant has filed the Form 10CCB. Further, the decisions relied on by the appellant are distinguishable as the facts of those cases are different from the facts of the instant case. In those cases, though the assesses had furnished the audit report belatedly they were either furnished before the processing of the return or completion of assessment proceedings. However, in the instant case, the appellant has furnished the audit report after the completion of assessment proceedings only as an afterthought. Therefore, the action of the AO to deny the deduction u/s 801A for the failure to furnish the audit report in Form 10CCB which is a mandatory requirement to avail the deduction u/s 801A(4) (iv) is upheld. Hence, all the relevant grounds are dismissed. 8. In the result, the appeal of the appellant is Dismissed.” 5. We have rival submissions and perused the materials available on record. We note that undisputedly the assessee is engaged in the generation power in its solar power plant, which was put into operation during the year. We note that the assessee has effected gross sales of Rs.59,03,094/- from the said plant, which is squarely covered u/s 80IA(4) of the Act. Therefore, the issue of allowing deduction is not in dispute. But only dispute is that assessee has not filed the audit report in Form 10CCB as per section 80IA(7) of the Act. Now the issue for adjudication before us is whether such non-filing of the audit report in Form 10CCB within the prescribed time constitutes an incurable defect or merely a procedural defect, so as to deny the claim of deduction u/s 80IA(4) of the Act, which is,in our opinion, is only a procedural

ITA No.994/Kol/2025/A.Y.2018-19 Cicago Commodities Pvt. Ltd. vs. ACIT defect and is curable in nature. Such a procedural lapse cannot, by itself, be made a ground to deny the claim of deduction u/s 80IA(4) of the Act.The case of the assessee is squarely covered by the decision of Co-ordinate Bench in case of DCIT(E) vs. Karmapa Charitable Trust, in ITA No.953/Kol/2015, dated 10.01.2018. Therefore, we are inclined to set-aside the order of ld. CIT(A) and direct the AO to allow claim u/s 80IA(4) of the Act.

The order is pronounced in the open Court on 01/09/2026.

Sd/- Sd/- (Pradip Kumar Choubey) (Rajesh Kumar) JUDICIAL MEMBER ACCOUTANT MEMBER Kolkata, Dated: 01/09/2026 SAMANTA आदेश �ȧ ĤǓ�ͧ �ͪ �\ Ē ȯͪ��/Copy of the Order forwardedto: 1. \ �Ȣ�ȡ�ȸ/ The Appellant 2. Ĥ×��ȸ/ The Respondent. 3. Ȳ�Ȳͬ��आयकर] �ǕÈ�/ Concerned CIT 4. आयकर] �ǕÈ�(अपील) / The CIT(A) 5. ��ȡ�Ȣ�ĤǓ�Ǔ�ͬ �, आयकर\ �Ȣ�ȣ�\ͬ ����,/ DR, ITAT, Kolkata 6. �ȡ�[ फाईल/ Guard file.

BY ORDER,

// TRUE COPY // Deputy Registrar, ITAT, Kolkata