Taxpayer Cannot Be Denied Benefit Of Sec 80IB If Audit Report & Form 3CB Was Not Uploaded Due To Technical Glitch In E-Filing: Mumbai ITAT

While remanding the matter for fresh disposal of assessee's claim u/s 80IB of Income Tax Act, 1961 in the wake of new admissible evidence, the Mumbai ITAT directed the AO to consider the audit report u/s 44AB along with Form 3CB.

The Bench comprising Kuldip Singh (Judicial Member) and Gagan Goyal (Accountant Member) observed that, “Since the uploading of the audit report with form No.3CB and form No.10CCB could not be uploaded due to technical glitch as e-filing was newly introduced, the assessee cannot be punished for that, if he is otherwise eligible to get the benefit under section 80-IB.” (Para 11)

As per the brief facts of the case, the assessee is into the business of real estate i.e. construction and sale of immovable property which is approved by the authority for the purpose of claiming deduction @ 100% of the profit from the housing project u/s 80IB. The assessee claimed deduction @ 100% from the housing project for the year under consideration but due to some technical glitches the assessee failed to furnish report in form 3CB and form 10CCB respectively within due date of filing the return of income, but ultimately uploaded the same. The assessee declared total income as Nil after claiming 100% deduction of profit under section 80IB. Consequently, a notice proposing adjustment was uploaded on e-portal by disallowing the entire deduction claimed by the assessee for want of report in the form 10CCB after due date.

The Bench scrutinized the audit report u/s 44AB with form 3CB along with return of income, and also the audit report filed by the assessee u/s 80-I(7)/80-IA(7)/80- IB/80-IC/80-IAC/80-IE along with form 10CCB.

The Bench at the same time found that the audit report u/s 44AB with form 3CB and u/s 80-I(7)/80-IA(7)/80- IB/80-IC/80-IAC/80-IE along with form 10CCB was not brought on record by the asssessee before the CIT(A).

Therefore, finding that the assessee has duly explained the facts, the ITAT remitted the new evidence brought on record by the assessee back to the AO to verify and allow the deduction claimed by the assessee under section 80-IB, if admissible under law, after providing opportunity of being heard to the assessee.

Counsel for Appellant/ Taxpayer: Devendra Jain

Counsel for Respondent/ Department: Avinash Baburao Karpe

Case Title: M/s. S.K. Ventures verses DCIT

Case Number: ITA No.2173/M/2021

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