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Form 10CCB is a mandatory requirement to claim deduction U/S 80(IB)10
Form 10CCB is a mandatory requirement to claim deduction U/S 80(IB)10
It is mandatory to file the audit report in Form No. 10CCB along with return income to claim deduction U/S 80(IB)10 of the act. A mere statement by CA in his tax audit report to allow deduction is insufficient. As Shri Praiyavadan, a project consultant to cooperative housing society didn't attach audit report with his income tax return, so AO is right in disallowing the claim of deduction U/S 80(IB)10.
1. Assessee, Shri Praiyavadan is a project consultant to Praiyavadan Cop. housing society.
2. He is a co-member of Praiyavadan Cop. housing society too.
3. He filed his income tax return reporting his income at Rs.6,910.
4. He deducted Rs2,66,002 from his income. He claimed the deduction under section 80(IB)10.
5. He has been regularly claiming such deduction in earlier years too.
6. AO took his case for Asst. Year 2008-09 on scrutiny assessment under CASS. He issued notice u/s 143(2) of the Act.
7. AO disallowed assessee's claim of deduction U/S 80(IB)10. AO said that as assessee didn't attach audit report in Form no. 10CCB with return income so he can't claim deduction.
8. It is a statutory condition to submit audit report in Form No. 100CCB to claim deduction under section 80(IB)10.
9. Praiyavadan appealed before CIT(A).
10. Praiyavadan said that his auditor has supported his admission of claim. He (auditor) has mentioned in his tax audit report to admit the claim.
11. CIT(A) disagreed and upheld the orders of AO.
12. Praiyavadan appealed before ITAT Ahemdabad.
13. ITAT decided the case in favour of revenue. It disallowed the deduction.
14. ITAT held that
- It is mandatory to file form no. 10CCB to claim deduction under section 80(IB)10.
- Statement of auditor in form 3CD is not sufficient enough to allow the claim.
News Reference: Shri Praiyavadan P. Shah, Vs. ITO
