Sindhu Resettlement Corporation Ltd. v/s DCIT, Circle-2(3)(1)

Parties Involved

Facts Summary

The assessee, Sindhu Resettlement Corporation Ltd., filed its return of income on 04/11/2022, claiming a deduction of ₹ 48,06,281 under section 80-IA(4)(iv) of the Income Tax Act, 1961. The Centralised Processing Centre, Bengaluru, issued an intimation on 16/03/2023 disallowing the deduction on the basis that the assessee failed to file Form no.10CCB within the due date. The assessee appealed against this intimation, and the learned Addl./Joint Commissioner of Income Tax (Appeals) upheld the disallowance. The assessee then appealed to the Income Tax Appellate Tribunal, arguing that the delay in filing Form no.10CCB was due to technical error and inadvertence. The Tribunal considered the submissions and held that the timeline for filing the audit report in Form no.10CCB is directory and not mandatory, allowing the deduction claimed by the assessee.…

Legal Issues

• 1. Whether the disallowance of deduction claimed under section 80-IA(4)(iv) of the Act is justified.
• 2. Whether the timeline for filing the audit report in Form no.10CCB is mandatory or directory.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• I.T.A. No. 1318/KOL/2024

  Kolkata 'C' Bench benchAY 2022-23Dismissed

• ACIT vs Talbotforce Services Pvt. Ltd.

  Delhi 'E' Bench benchAY 2023-24Dismissed

• Nikhil Banga Kalyan Samity Vs. ITO, Ward-1(1), Exempt, Kolkata

• Alliance Educational Foundation vs. The Income Tax Officer

  Cochin bench

• Aakash Bhardwaj vs AO Circle-1

  Delhi Bench 'G', New Delhi benchAY 2024-25Allowed

• Cosmopolitan Education Society vs. Assistant Commissioner of Income Tax

  Mumbai Bench benchAY 2019-20Allowed