SHREE GANESH CORPORATION,SURAT vs. ITO, WARD 3(3)(1), SURAT

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ITA 1123/SRT/2025Status: DisposedITAT Surat29 October 2026AY 2020-215 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee is eligible for deduction under Section 80IBA of the Income Tax Act, 1961, provided all conditions are met. The Tribunal noted that Form 29C, filed on 19.10.2020, specifically mentioned Section 80IBA deduction. While there was a mistake in the first page of Form 10CCB, the Tribunal considered it a typographical error and not a fatal flaw that should disentitle the assessee to the rightful deduction. The fact that the deduction under Section 80IBA was allowed for a subsequent assessment year (AY 2022-23) was also considered. The Tribunal found no dispute raised by the Revenue regarding the assessee's ineligibility for Section 80IBA deduction in principle for the current assessment year. Therefore, the matter was remanded back to the Assessing Officer for a proper verification of whether the assessee fulfilled all the conditions for claiming the deduction under Section 80IBA. The assessee was to be given an opportunity of hearing.

What were the facts?

The assessee, Shree Ganesh Corporation, a partnership firm engaged in affordable housing projects, filed its return of income for Assessment Year 2020-21 declaring Nil income. The assessee claimed a deduction of Rs. 92,15,381/- under Section 80IBA of the Income Tax Act, 1961. The case was selected for scrutiny. During the assessment proceedings, the Assessing Officer (AO) noted that while the assessee had initially uploaded Form 10CCB and Form 3CD claiming deduction under Section 80IB(10), it later contended that this was a mistake and it intended to claim deduction under Section 80IBA. The AO disallowed the deduction of Rs. 92,15,380/-, holding it to be a deliberate misreporting rather than a mistake, as no revised return was filed. The Commissioner of Income Tax (Appeals) dismissed the assessee's appeal.

What were the issues?

1. Whether the assessee is eligible for deduction under Section 80IBA of the Income Tax Act, 1961, for Assessment Year 2020-21, despite initially claiming deduction under Section 80IB(10) and not filing a revised return. Assessee's Contention: The assessee argued that it mistakenly mentioned deduction under Section 80IB(10) and corrected this error by claiming deduction under Section 80IBA. It submitted that Form 10CCB and Form 29C, filed on 19.10.2020, clearly indicated a claim for Section 80IBA deduction. The assessee also pointed out that for Assessment Year 2022-23, the deduction under Section 80IBA was allowed by the Revenue. Revenue's Contention: The Revenue, relying on the assessment order and the CIT(A)'s order, argued that the assessee's failure to file a revised return to rectify the mistake meant it was deliberate misreporting, not an error. The Revenue contended that the assessee had not filed a revised return of income to correct the mistake.

Which sections of the Income-tax Act were involved?

Section 80IBA,Section 80IB(10),Section 143(2),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: MS. SUCHITRA KAMBLE & SHRI B.M. BIYANI

Pronounced: 29.10.2026

IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER ITA No.1123/SRT/2025 (िनधा�रण वष�/Assessment Year: 2020-21) SHREE GANESH CORPORATION ITO, WARD 3(3)(1) SHOP NO.21, WHITE STONE, AAYAKAR BHAWAN, VARIYAV, AMROLI S.O, MAJURAGATE, Vs. BHARTHANA KOSAD, SURAT-395001, GUJARAT SURAT-394107, GUJARAT अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: ADQFS8363P

अपीलाथ� �ारा/Appellant represented by: Shri Mehul Shah, CA ��थ� �ारा/Respondent represented by: Shri Ashish Kumar, Sr. DR सुनवाई की तारीख / Date of conclusion of hearing: 19.08.2026 घोषणा की तारीख / Date of pronouncement: 29.10.2026 O R D E R PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [in short “CIT(A)”] dated 25.08.2025 for the Assessment Year (in short “AY”) 2020-21.

2.

The assessee has raised the following grounds of appeal: “1. On the facts and circumstances of the case as well as law on the subject, Id. CIT(A) has erred in confirming the action of assessing officer in making disallowance of Rs. 92,15,380/- being deduction claimed u/s. 80IBA of the Income Tax Act, 1961. 2. It is therefore prayed that addition made by the assessing officer and confirmed by CIT(A) may please be deleted.

ITA No.1123/SRT/2025 (A.Y. 2020-21) SHREE GANESH CORPORATION

3.

Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal.” 3. The assessee is a partnership firm and engaged in construction of affordable housing projects. The assessee filed return of income for A.Y. 2020-21 on 19-10-2021 declaring total income of Rs.Nil. The assessee claimed deduction u/s 80IBA of the Income Tax Act, 1961 (in short “the Act) at Rs.92,15,381/-. The case of the assessee was selected for complete scrutiny. Notice u/s 143(2) of the Act dated 29-06-2021 was issued to the assessee and the assessee filed certain details. Subsequently, statutory notices were issued which were replied and details were filed from time to time. The Assessing Officer (in short “the AO”) observed that the assessee claimed deduction u/s 80IBA of Rs.92,15,381/-. The assessee uploaded Form No.10CCB thereby claiming deduction u/s 80IB(10) of Rs.92,15,381/-. As per audit report in Form No.3CD, the assessee claimed deduction u/s 80IBA of Rs.92,15,381/-. Vide reply dated 05-02-2022, the assessee uploaded information that it fulfilled all the conditions to claim deduction u/s 80IBA. Since the assessee claimed deduction u/s 80IBA before initiation of scrutiny proceedings and claiming deduction under different section i.e. section 80IBA. During the scrutiny proceedings, the assessee claimed deduction u/s 80G of Rs.51,000/- in its return of income but has not uploaded the requisite documentary evidences except bank account statement. The AO further observed that whether the assessee adopted correct accounting standard in respect of recognition of revenue and correctly declared income should have been verified. The AO also observed that the value of opening stock as per current year’s profit & loss account (trading and manufacturing account) and value of closing stock as per preceding year’s profit & loss account (trading and manufacturing account) as reported in respective years return of income should have been set but there is substantial difference and it needs verification as there may be possibility that assessee misreported the value of stock in order to

ITA No.1123/SRT/2025 (A.Y. 2020-21) SHREE GANESH CORPORATION reduce its profit. After taking assessee’s submissions and details the AO held that the assessee filed Form No.10CCB and Form No.3CD which were certified by the chartered accountant of the assessee and claimed deduction u/s 80IB, but during scrutiny proceedings claimed deduction under a different section i.e., 80IBA stating that it has wrongly claimed deduction u/s 80IB by mistake. The assessee has not filed revised return of income by correcting the mistakes committed in the original return of income. Thus, the AO made disallowance of Rs.92,15,380/- and rejected the claim of deduction u/s 80IB(10).

4.

Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

5.

The Ld. Authoritised Representative (in short “the Ld. AR”) submitted that the assessee wrongly mentioned deduction u/s 80IB(10) and has corrected the said mistake while claiming the revised return of income u/s 80IBA. In fact, Form No.10CCB along with Form No.29C at page 49 reveals that the assessee claimed deduction u/s 80IBA related to profits and gains from housing project in A.Y. 2020-21 which was submitted on 19.10.2020. Form 10CB also was submitted on 19.10.2020. Thus, there was a mistake on part of the assessee in the scrutiny year and for the next assessment year the deduction u/s 80IBA was allowed by the Revenue.

6.

The Ld. Departmental Representative (in short “Ld. DR”) relied upon the assessment order and the order of the CIT(A). The Ld. DR further submitted that the assessee has not filed revised return of income thereby rectifying the mistake, therefore it will not be treated as a mistake but the deliberate misreporting of the actual income.

7.

We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the assessee has filed Form 29C wherein Annexure-A categorically mentions section 80IBA

ITA No.1123/SRT/2025 (A.Y. 2020-21) SHREE GANESH CORPORATION deduction which was also filed on the very same day i.e. 19.10.2020. From the perusal of other details of the assessee including audit report it appears that the deduction u/s 80IBA validly claimed by the assessee but due to the mistake in the first page of the Form 10CCB the eligible deduction cannot be taken away from the assessee. In fact for A.Y. 2022-23 the deduction u/s 80IBA was allowed. However, there is no dispute raised by the Revenue that assessee is not at all eligible for 80IBA in the present assessment year that has not been the case in present assessee’s case. Therefore, for the mistake of typographical error it cannot be held as a fatal mistake thereby denying the rightful deduction of the assessee. Therefore, the assessee is eligible for deduction u/s 80IBA, if the assessee is fulfilling all the conditions of the said deduction to be claimed under the relevant section i.e. 80IBA. Therefore, the matter is remanded back to the file of the AO for proper verification of all the conditions whether fulfilled by the assessee or not as per deduction claimed u/s 80IBA and adjudicate it accordingly. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice.

8.

In result appeal of the assessee is partly allowed for statistical purpose.

Order pronounced in the open court on 29.10.2026

Sd/- Sd/- (B.M. BIYANI) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER Surat; Dated: 29.10.2026 //True Copy// * Kishore, Sr. P.S. Copy of the Order forwarded to: 1. The Appellant 2. The Respondent

ITA No.1123/SRT/2025 (A.Y. 2020-21) SHREE GANESH CORPORATION 3. CIT- concerned 4. DR, ITAT, Surat 5. Guard File By order, HEMA KISHORE Digitally signed by HEMA KISHORE JAKKA JAKKA Date: 2026.10.29 17:50:54 +05'30' Assistant Registrar/Sr.PS/PS ITAT, Surat Bench

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