ITAT Rejects Revenue’s Appeal Against Timely Filing of Form 10CCB:

The assessee filed its return of income for Assessment Year 2022-23, declaring a total income of Rs. 1,87,10,752. While processing the return under Section 143(1) of the Act, the CPC disallowed the assessee's deduction claim under Section 80IB(10), amounting to Rs. 3,36,91,079, on the ground that the prescribed audit report in Form 10CCB had not been furnished within the stipulated time. Consequently, a tax demand of Rs. 58,95,760 was raised against the assessee.

The assessee argued that both its income tax return and audit report in Form 10CCB had been filed on 13/10/2022, before the applicable due date for filing the return. It had also furnished its tax audit report in Form 3CA-3CD under Section 44AB on 30/09/2022. The assessee challenged the adjustment before the First Appellate Authority, which allowed its appeal.

The Tribunal examined the rival submissions and noted that the identical issue had already been considered by its coordinate bench in the assessee's own case for the same assessment year, in ITA No. 638/Lkw/2024, order dated 28/10/2025. The coordinate bench had held that since Form 10CCB was furnished on 13/10/2022, before the due date for filing the return of income, the assessee's deduction claim was in accordance with law and deserved to be allowed.

On the issue of the timing of filing Form 10CCB, the Tribunal specifically examined the provisions of Section 80IB. It observed that the condition requiring the audit report to be furnished within the time prescribed under Section 44AB is specifically incorporated in Sections 80IB(7A), 80IB(7B), 80IB(11B) and 80IB(11C). However, no such requirement has been prescribed under Section 80IB(10).

Therefore, the Tribunal held that the deduction claimed under Section 80IB(10) could not be disallowed merely because Form 10CCB was not furnished one month before the due date prescribed under Section 139(1). The Tribunal dismissed all the grounds raised by the Revenue and upheld the allowance of deduction under Section 80IB(10) in favour of Arif Industries Pvt. Ltd.