Delayed filing of Form 10CCB before return processing does not disqualify startup deduction u/s 80IAC if return filed timely u/s 139(1) and claim certified in tax audit report; procedural lapse cannot override substantive eligibility.

ORDER

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)/ Addl/JCIT(A)-5 Kolkatta [hereinafter referred to as “Ld. CIT(A)”] vide order dated 04-09-2025 pertaining to A.Y. 2021-22 arising out the intimation order dated 11-11-2022 under section 143(1) of the Income Tax Act,1961, (in short ‘the Act’).

2. The assessee has raised the following grounds in appeal:

1. That in the facts and circumstances of the case the order passed by the learned Addl/JCIT-(A) -5 Kolkatta is not in accordance with law in confirming the action of the learned AO in making adjustment by disallowing the claim of deduction under section 80IAC of the Income tax Act.

2. That in the facts and circumstances of the case the order passed by the learned Addl/JCIT-(A) -5 Kolkatta has grossly erred in confirming the action of the learned AO in disallowing deduction under section 80IAC on the ground that report in form 10CCB was not filed by the due date whereas the same was filed on 11-10-202 before processing of return under section 143(1)(a) on 11-11-2022.

3. That in the facts and circumstances of the case the order passed by the learned Addl/JCIT-(A) -5 Kolkatta has grossly erred in confirming the action of the learned AO in making adjustment under section 143(1)(a) by disallowing claim of deduction under section 80IAC without considering the submission of the assessee filed on 11-10-2022 which was required to be considered as per second proviso of section 143(1)(a) of the Income Tax Act, 1961.

4. That in the facts and circumstances of the case the order passed by the learned Addl/JCIT-(A) -5 Kolkatta has grossly erred in confirming the action of the learned AO in making adjustment under section 143(1)(a) by disallowing claim of deduction under section 80IA Deduction in Respect Of Eligible Start-UP, claimed by the assessee merely on account of procedural defect.

5. That in the facts and circumstances of the case the order passed by the learned Addl/JCIT-(A) -5 Kolkatta has grossly erred in confirming the action of the learned AO in making adjustment under section 143(1)(a) by disallowing claim of deduction under section 80IAC without converting the various case laws cited by the assessee in the submission furnished during appellate proceedings.

6. That the appellant craves to add/ alter/amend the grounds of appeal before the final hearing is completed.

3. The brief facts of the case are that the assessee is a Private Limited Company incorporated under Indian Companies Act. The assessee company filed its return of income for A.Y. 2021- 22 declaring a total income of Rs. Nil on 29-01-2022 after claiming a deduction of Rs.67,64,210/- under section 80IC of the Act. The assessee has paid minimum alternative Tax (MAT) under section 115JB of Rs.13,00,053/ @ 15 % of book profit including education cess @ 4% and interest. The assessee received a notice u/s 143(1) of the Act from the department regarding incorrect claim under section 80IC for carrying out adjustment. The assessee submitted the reply and uploaded the Form 10CCB on 12-10-2022 with request to condone the delay in filing in Form No.10CCB. The Assessing Officer sent the intimation under section 143(1) dated 11-11-2022 disallowing the claim of under section 80IAC of Rs.67,64,210/- and raised the demand of Rs.8,16,062/-. Aggrieved the order from the CPC the assessee preferred the appeal before the Ld. CIT(A), who vide his order dated 04-09-2025 dismissed the appeal of the assessee. Being aggrieved the order of the Ld. CIT(A), the assessee is in appeal before the tribunal.

4. The ld. AR of the assessee submitted that the FORM no.10- C