The two member bench of the Income Tax Appellate Tribunal ( ITAT ) Mumbai, allowed the claim of deduction under Section 80-IC of the Income Tax Act, 1961, based on the Income Tax Return ( ITR ) filed along with Form 10CCB.

The assessee operated in the manufacturing sector, specifically producing auto ancillary products, and served as a supplier to major automobile manufacturers across India. For the relevant fiscal year, the taxpayer filed their income tax return on 29/11/2015, declaring a total income of Rs. 22,12,09,220. Subsequently, the return underwent processing, resulting in an intimation dated 26/11/2016 from M/s. Supreme Treon Pvt. Ltd. under section 143(1) of the Income Tax Act, 1961. This intimation determined the total income to be Rs. 23,47,42,110, following the disallowance of a deduction claimed amounting to Rs. 1,35,62,893 under section 80-IC of the Act.

The Commissioner of Income Tax ( Appeals ) ( CIT(A) ) dismissed the appeal lodged by the taxpayer against the aforementioned intimation issued under section 143(1) of the Income Tax Act, 1961. The CIT(A) asserted that the due date for filing the income tax return for the assessee  was 31/10/2015. This determination was made as the assessee failed to provide the prescribed audit report in the prescribed form within the specified timeframe, as mandated by Section 92E of the Income Tax Act, 1961. Consequently, the return submitted by the taxpayer on 29/11/2015 was categorized as a belated return under Section 139(4) of the Income Tax Act, 1961 Additionally, it was established that no audit report under Section 44AB, Section 92E, or section 80-IC, of the Income Tax Act, 1961, as required by the Act, was furnished along with the return submitted on 29/11/2015 or before that date. The CIT(A) further emphasized that the assessee breached the conditions outlined in section 92E of the Income Tax Act, 1961,  rendering any subsequent report filed under the said section ineligible for consideration under the provisions of the law. Furthermore, it was noted that the audit report under Section 92E of the Income Tax Act, 1961, was submitted on 14/03/2017, post the completion of processing under section 143(1) of the Income Tax Act, 1961,

Therefore, there was a lack of information before the Assessing Officer regarding whether the assessee had undertaken international transactions or specified domestic transactions. Furthermore, clarified that once a return was belatedly filed under section 139(4) of the Income Tax Act, 1961,  it cannot be revised under section 139(5) of the Income Tax Act, 1961. Additionally, the CIT(A) highlighted that the taxpayer failed to furnish the requisite report under Section 80-IC of the Income Tax Act, 1961, along with the income tax return, citing that the assessee’s  accounts were not finalized at that time.

The ( CIT(A) ) has affirmed the decision made by the Assessing Officer ( AO ) to disallow the deduction claimed under Section 80-IC of the Income Tax Act, 1961 The bench found that for the fiscal year in question, the assessee submitted their income tax return on 29/11/2015, declaring a total income of Rs. 22,12,09,220.

This declaration included a deduction of Rs. 1,35,62,893 claimed under Section 80-IC of the Income Tax Act, 1961, for an industrial undertaking situated in Uttarakhand. This deduction was evident from the original income tax return filed in Form ITR-6, which is included in the record from pages 2-36.

The two member bench of the tribunal comprising Prashanth Maharishi ( Accountant member ) and Sandeep Sing Karhail ( Judicial member ) observed that the fiscal year under review marks the 8th year of claiming the deduction under section 80-IC of the Income Tax Act, 1961,  for the Rudrapur unit. Additionally, the assessee has provided a copy of Form No. 10CCB dated 29/11/2015, supporting their claim for deduction under Section 80-IC of the Income Tax Act, 1961. In the result, the appeal by the assessee was allowed.