Filing of 10CCB Form Before Deadline U/S 139(1) is Not Compulsory, Delhi ITAT Allows Deduction

In response to an appeal made in the case of Sanjay Kukreja versus ACIT against the rejection of the claim for deduction u/s 80IA by the Income Tax department, the New Delhi ITAT, on Tuesday, reversed the decision, directing the assessing officer to allow claimed deduction on the grounds that filing of audit report with Form 10CCB before the due date for filing of income tax return u/s 139(1) of the IT Act, 1961 is optional and not mandatory.

The order was passed by the bench of ITAT comprising G.S. Pannu (Vice President) and Challa Nagendra Prasad (Judicial Member).

The assessee claimed a deduction under u/s 80IA while filing his income tax return before the due date. In response, he received a notice from the ADIT(CPC) demanding various adjustments in his return and rejecting the claim under section 80IA citing the reason that the person failed to file Form 10CCB before the due date.

In response, the assessee filed a revised return with corrections and also filed Form 10CCB to claim a deduction u/s 80IA. While the return was processed, the claim was denied again.

The Bench upon hearing the arguments from both parties noted that the issue was to determine whether it is mandatory or optional to file Form 10CCB along with the ITR before the due date u/s 139(1) for claiming deduction u/s 80IA.

Citing the case of CIT Vs. Contimeters Electricals Pvt. Ltd., the Bench concluded that the requirement of filing Form 10CCB for the audit report before the due date is indeed not mandatory but a directory. As a conclusion, the ITAT bench allowed the appeal of the assessee to claim a deduction u/s 80IA.