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2018 (11) TMI 316 - ITAT JAIPURDisallowing deduction claimed u/s 80IA - disallowance for want of tax audit report in Form 10CCB along with the return of income - AO noted as form no. 10CCB to be e-filed along with the return of income and audit report has not been done - whether claim of such deduction should not be disallowed for ‘bona-fide’ and ‘procedural lapse’? - Held that:- This is not the first year of claim of deduction under section 80IB and, therefore, it is not the case of the A.O. that the assessee’s undertaking is not eligible for deduction under section 80IB. However, only for want of filing of form no. 10CCB along with the return of income and through e-filing, the AO has denied the claim of deduction under section 80IA. The assessee subsequently filed the form no. 10CCB during the assessment proceedings and also explained the reasons for not e-filing the form 10CCB along with the return of income. There is no dispute that the return of income was filed within the period of limitation provided under section 139(1) of the IT Act. Hence only because the assessee could not e-file the form no. 10CCB along with the return of income, the assessee cannot be denied the benefit of section 80IA. Also as the assessee had duly explained the reasons for not filing form no. 10CCB along with the return of income by way of filing the affidavit of the auditor of the assessee. Hence we allow the claim of the assessee and orders of the authorities below are set aside. - Decided in favour of assessee. Adhoc disallowance of certain expenses - Held that:- In view of our finding on ground no. 1 regarding the claim of deduction under section 80IA, the expenses to the extent of the eligible business of the assessee shall have no revenue effect even if adhoc disallowance is made by the AO. Accordingly, the AO is directed to reconsider this issue in the light of the adjudication of ground no. 1.
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