Deduction u/s 80IAC – Whether Delay in Filing Form 10CCB is Fatal?
ITAT Delhi was concerned with an issue of Deduction u/s 80IAC & Scope of Amendment to Section 80IA(7) in the case of FIVD India Consulting Pvt. Ltd. v. DCIT, Circle 1(1), Gurgaon – ITA No. 3877/Del/2025 | Order dated 28 November 2025 | AY 2023-24.
Let us have a Short Overview of the Case: –
Core Issue:-The central question before the Tribunal was whether a start-up claiming deduction under section 80IAC could be denied the benefit solely because Form 10CCB was not filed before the “specified date” referred to in section 44AB, although the audit was completed on time, Form 10CCB was duly signed before the specified date, and the form was uploaded before completion of assessment.
The CPC and CIT(A) rejected the claim on the ground that the audit report was not furnished by 31 October 2023, the “specified date” under section 44AB for AY 2023-24.
II. Statutory Framework
1. Deduction u/s 80IAC
Eligible start-ups must satisfy conditions in:
Section 80IAC(1),
Section 80IAC(3), and
Section 80IAC(4).
2. Mandatory Audit Requirement – Section 80IA(7)
Post–Finance Act 2020, an assessee must:
get accounts audited before the specified date u/s 44AB, and
furnish the audit report by that date in the prescribed form (Form 10CCB).
3. Nature of Amendment (FA 2020) The 2020 amendment:
It has shifted the timeline for filing the audit report (from “along with return” to “before specified date”), but did not alter the substantive requirement that an audit report must exist and be valid.
Whether failure to upload the report before the specified date is substantive (fatal) or procedural (curable) was the heart of litigation.
III. Facts Considered by the Tribunal
Return filed on 30.11.2023, claiming ₹18.57 cr deduction u/s 80IAC.
Accounts were duly audited; Form 10CCB was signed on 31.10.2023.
Uploading was delayed due to technical reasons; finally uploaded on 13.12.2023. CPC denied deduction under section 143(1) citing late filing.
CIT(A) upheld the denial.
Assessee argued that filing Form 10CCB before assessment is a procedural requirement; the Department argued that post-amendment, timely furnishing before the specified date is mandatory.
IV. Tribunal’s Analysis
1. Audit was completed on time: the audit was concluded, and Form 10CCB was duly signed before the specified date. Thus, the substantive condition of audit was fully satisfied.
2. Delay in e-filing is procedural: ITAT held that Filing the report before the specified date is procedural. Uploading a statutory report after the specified date but before completion of assessment does not defeat the claim.
3. Though section 80IA(7) has been amended, it held that SC jurisprudence continues to apply: Substantive compliance by completing the audit is essential. Procedural compliance (timing of filing) can be condoned as long as the assessment is still open.
4. The Revenue’s argument that the 2020 amendment made the timeline mandatory was rejected: The amendment only changed when the report must be furnished.
5. Filing before assessment is sufficient compliance.
The copy of the order is as under:
