Filing of audit report mandatory but timeline merely procedural; Allows deduction under section 80IAC

Delhi ITAT allows Assessee’s appeal observing that the filing of Audit Report is mandatory for claiming deduction under section 80IAC, however, the timeline for filing such Audit Report is only procedural; Therefore, ITAT holds that the Assessee is eligible to claim deduction under section 80-IAC; Having considered the facts and submissions, ITAT outlines that the short issue that requires deliberation is whether the Assessee is eligible to claim deduction under section 80IAC when the Audit Report in the prescribed format was filed beyond the specified date but before the completion of assessment; Tribunal emphasizes that the Assessment year 2023-24 was the first year of Assessee’s claim of deduction u/s 80IAC; Noting the fulfillment of conditions as outlined under section 80IAC, ITAT observes that the Assessee’s accounts were duly audited and Audit Report in Form 10CCB was duly signed and verified by the accountant by the specified date as defined under section 44AB; ITAT articulates that the only short coming for which Assessee’s claim under section 80IAC was non-furnishing of the Audit Report before the specified date in accordance with the provisions of Section 80IA(7); Further, Tribunal elucidates that furnishing of Audit Report before the specified date under section 44AB is a procedural requirement and where the statutory report is furnished after the specified date but before the completion of assessment then the same shall not be an impediment while considering Assessee’s claim of deduction under section 80IAC; Tribunal outlines Supreme Court decision in CIT v. GM KnittingIndustries (P) Ltd. (2015) 376 ITR 456 : (2016) 71 taxmann.com 35 (SC) and jurisdictional High Court decision in CIT v. Contimeters Electrical (P) Ltd. (2009) 317 ITR 249 :  178 Taxman 422 (Del.) that deliberated on a similar issue, and consequently decided in Assessee’s favour; Rejecting Revenue’s contention that post amendment of provision of Section 80IA(7) vide Finance Act, 2020, the leverage of filing Audit Report after the prescribed date is unavailable to the Assessee, ITAT states that post amendment of the said section, the Assessee is required to furnish Audit Report in the prescribed form prior to the specified date referred to in Section 44AB; Lastly, ITAT also emphasizes that the Supreme Court in GM Knitting had categorically held that even if the Audit Report in the prescribed form is filed before completion of assessment, the provisions of section 80IA(7) of the Act are sufficiently complied. The Assessing Officer has not examined assessee’s eligibility and the veracity of quantum of deduction claimed. Therefore, we deem it appropriate to restore this issue back to the file of Assessing Officer to examine assessee’s eligibility as well as quantum of deduction under section 80IAC of the Act. The Assessing Officer shall allow assesse’s claim of deduction under section 80IAC of the Act, if otherwise assessee is found to eligible in terms of provisions of section 80IAC of the Act. The Assessing Officer shall grant reasonable opportunity of making submissions to the assessee before passing the order, in accordance with law. 10. In the result, appeal of the assessee is allowed for statistical purpose in the terms aforesaid. [Allowed for statistical purpose] (Related Assessment year : 2023-24) – [FIVD India Consulting (P) Ltd. v. DCIT, Gurgaon[ TS-1602-ITAT-2025(DEL)] – Date of judgement : 28.11.2025 (ITAT Delhi)]

Delhi ITAT allows Assessee’s appeal observing that the filing of Audit Report is mandatory for claiming deduction under section 80IAC, however, the timeline for filing such Audit Report is only procedural; Therefore, ITAT holds that the Assessee is eligible to claim deduction under section 80-IAC; Having considered the facts and submissions, ITAT outlines that the short issue that requires deliberation is whether the Assessee is eligible to claim deduction under section 80IAC when the Audit Report in the prescribed format was filed beyond the specified date but before the completion of assessment; Tribunal emphasizes that the Assessment year 2023-24 was the first year of Assessee’s claim of deduction u/s 80IAC; Noting the fulfillment of conditions as outlined under section 80IAC, ITAT observes that the Assessee’s accounts were duly audited and Audit Report in Form 10CCB was duly signed and verified by the accountant by the specified date as defined under section 44AB; ITAT articulates that the only short coming for which Assessee’s claim under section 80IAC was non-furnishing of the Audit Report before the specified date in accordance with the provisions of Section 80IA(7); Further, Tribunal elucidates that furnishing of Audit Report before the specified date under section 44AB is a procedural requirement and where the statutory report is furnished after the specified date but before the completion of assessment then the same shall not be an impediment while considering Assessee’s claim of deduction under section 80IAC; Tribunal outlines Supreme Court decision in CIT v. GM KnittingIndustries (P) Ltd. (2015) 376 ITR 456 : (2016) 71 taxmann.com 35 (SC) and jurisdictional High Court decision in CIT v. Contimeters Electrical (P) Ltd. (2009) 317 ITR 249 :  178 Taxman 422 (Del.) that deliberated on a similar issue, and consequently decided in Assessee’s favour; Rejecting Revenue’s contention that post amendment of provision of Section 80IA(7) vide Finance Act, 2020, the leverage of filing Audit Report after the prescribed date is unavailable to the Assessee, ITAT states that post amendment of the said section, the Assessee is required to furnish Audit Report in the prescribed form prior to the specified date referred to in Section 44AB; Lastly, ITAT also emphasizes that the Supreme Court in GM Knitting had categorically held that even if the Audit Report in the prescribed form is filed before completion of assessment, the provisions of section 80IA(7) of the Act are sufficiently complied. The Assessing Officer has not examined assessee’s eligibility and the veracity of quantum of deduction claimed. Therefore, we deem it appropriate to restore this issue back to the file of Assessing Officer to examine assessee’s eligibility as well as quantum of deduction under section 80IAC of the Act. The Assessing Officer shall allow assesse’s claim of deduction under section 80IAC of the Act, if otherwise assessee is found to eligible in terms of provisions of section 80IAC of the Act. The Assessing Officer shall grant reasonable opportunity of making submissions to the assessee before passing the order, in accordance with law. 10. In the result, appeal of the assessee is allowed for statistical purpose in the terms aforesaid. [Allowed for statistical purpose] (Related Assessment year : 2023-24) – [FIVD India Consulting (P) Ltd. v. DCIT, Gurgaon[ TS-1602-ITAT-2025(DEL)] – Date of judgement : 28.11.2025 (ITAT Delhi)]