Deduction u/s 80JJAA Disallowed for Non-Filing of Form 10DA: ITAT Restores Matter to AO, Treating Lapse as Technical [Read Order]
The tribunal observed that the claim related to earlier deductions, the lapse was purely technical, and directed the Assessing Officer to verify the claim
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) restored the matter to the Assessing Officer (AO), treating the disallowance of deduction under section 80JJAA of Income Tax Act,1961, for non-filing of Form 10DA as a technical lapse.
Akshar Elecinfra Pvt. Ltd.,appellant-assessee, filed its return of income on 15.02.2022 declaring total income of Rs.2,95,65,700/- and claimed deduction of Rs.7,02,975/- under section 80JJAA. The claim represented the continuation of deductions allowed in AYs. 2019-20 and 2020-21 for additional employment costs incurred in those years.
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Form 10DA had been filed in the initial years, but for AY 2021-22, no new employees were hired and the portal did not permit uploading the form.
The CPC disallowed the deduction while processing the return under section 143(1) on the ground that Form 10DA was not filed, and the Commissioner of Income Tax(Appeals)[CIT(A)] upheld the disallowance. The assessee contended that the claim was supported by the Tax Audit Report and earlier filings, and the failure to file Form 10DA again was only a technical issue.
The Department maintained that the statutory requirement was not complied with. The assessee, therefore, carried the matter in appeal before the tribunal.
The two member bench comprising Dr.B.R.R. Kumar (Vice President) and Siddhartha Nautiyal (Judicial Member) considered the submissions and examined the record. It found that the claim under section 80JJAA related to the continuation of deductions already allowed in the preceding two years, for which Form 10DA had been filed.
The disallowance was made only because Form 10DA was not filed again with the return for the year, and the CIT(A) confirmed the same by referring to section 80JJAA(2)(c).
The appellate tribunal held that the disallowance was merely technical, as no fresh employees were hired, the deduction pertained to earlier years, and the e-filing system did not permit uploading Form 10DA without new employment.
Considering these facts, the tribunal restored the matter to the Assessing Officer for verification of the claim and to grant relief in accordance with law.
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