ITAT upholds Allowance of Deduction u/s 10AA of Income Tax Act on ground of Proper e-filing of Form 56F [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) upheld the allowance of deduction by the Commissioner of Income Tax (Appeals) under section 10AA of the Income Tax Act,1961 on the ground of proper electronic-filing of form 56F by the assessee. 

Croygas Equipments Pvt. Ltd, the respondent assessee claimed for deduction under section 10AA of the Income Tax Act and the assessing officer denied the deduction. Later the Commissioner of Income Tax (Appeals) allowed the deduction to the assessee. 

The revenue appealed against the order passed by the Commissioner of Income Tax (Appeals) for allowing the deduction claimed by the assessee. 

Tushar Hemani and Parimalsinh B. Parmar, the counsels for the assessee contended that the assessee had got the audit report from the auditor under form 56F but had inadvertently omitted to submit the same under the mistaken belief that it could be filed during assessment. 

It was further submitted that the none e-filing of form 56F was just a procedural lapse and deduction should not be disallowed on this ground alone. 

Mukesh Jain, the counsel for the revenue contended that the assessee did not e-file its form 56F claiming deduction under section 10AA of the Income Tax Act as required under Rule 12(2) of the Income Tax Rules, 1962. 

It was also submitted that the assessee was required to e-file form 56F along with the return of income and non-compliance with this mandatory requirement would lead to denial of deduction. 

The bench observed that the exemption benefits under section 10AA of the Income Tax Act cannot be denied to the assessee on account of a procedural lapse committed by the chartered accountant of the assessee. 

The two-member panel comprising Annapurna Gupta (Accountant) and Siddhartha Nautiyal (Judicial) held the Commissioner had correctly allowed the appeal of the assessee in the instant set of facts and no interference was called for in the order while dismissing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates