Deduction u/s 80JJAA Cannot Be Denied Solely for Late Filing of Form 10DA Before Return Due Date: ITAT [Read Order]
The tribunal noted that only the CBDT has authority to condone delay in filing Form 10DA and ruled that the procedural lapse of late filing should not deprive the assessee of the deduction, as the claim was otherwise valid
Deduction – Solely for Late Filing – Form 10DA – taxscan
Deduction – Solely for Late Filing – Form 10DA – taxscan
The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) held that deduction under Section 80JJAA of Income Tax Act,1961 cannot be denied solely for the late filing of Form 10DA before the return due date.
Sunrise Industries (India) Ltd., appellant-assessee, filed its return of income for the assessment year 2023–24 on 31-10-2020, declaring income of ₹6.80 crore. It claimed a deduction of ₹72.04 lakh under Section 80JJAA of the Income Tax Act.
As per Rule 19AB and Section 80JJAA, Form 10DA had to be filed one month before the due date of the return, i.e. by 30-09-2023. However, the form was filed on 31-10-2023, resulting in a delay of 30 days.
The return was processed under Section 143(1), and the deduction was disallowed due to the late filing of Form 10DA. This led to an addition of ₹72.04 lakh.
The assessee challenged the adjustment before the Commissioner of Income Tax(Appeals)[CIT(A)], but the appeal was dismissed.
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Read More:Deduction u/s 80IA(4) cannot be Denied for Delayed Filing of Form 10CCB Audit Report: ITAT
The assessee counsel submitted that Form 10DA was filed on 31-10-2023 along with the return, though it was delayed by 30 days. It was explained that the delay happened due to certain reasons, and the CIT(A) should have condoned it.
The counsel relied on tribunal rulings in the cases of Akuntha Projects (P) Ltd. and Cosmos Entitech Pvt. Ltd. to support the claim.
The departmental representative supported the disallowance made in the intimation under Section 143(1) and upheld by the CIT(A).
The two member bench comprising Suchitra Kamble(Judicial Member) and Narendra Prasad Sinha (Accountant Member) considered the submissions of both parties and reviewed the material on record. It observed that the authority to condone delay in filing Form 10DA rested with the Central Board of Direct Taxes (CBDT) and not with the CIT(A).
However, the tribunal held that the deduction under Section 80JJAA could not be denied solely because Form 10DA was filed late, especially since it was submitted along with the return of income.
Relying on earlier appellate tribunal decisions and the principles established by the Supreme Court and Gujarat High Court, the ITAT found that the delay was a procedural lapse and should not lead to denial of a rightful deduction. Since the assessee was otherwise eligible, the benefit could not be refused on technical grounds.
Therefore, the appeal was allowed.
To Read the full text of the Order CLICK HERE
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