SHAKTI POLYWEAVE PRIVATE LIMITED,AHMEDABAD vs. THE PR. COMMISSIONER OF INCOME-TAX-3, AHMEDABAD, AHMEDABAD

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ITA 1267/AHD/2026Status: DisposedITAT Ahmedabad13 July 2026AY 2022-234 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a delay in filing Form 10DA is not fatal to claiming deduction under Section 80JJAA if the form is available to the AO before the assessment is framed. Therefore, the PCIT's revision order was bad in law.

What were the facts?

The assessee claimed deduction under Section 80JJAA, but the Form 10DA was filed after the due date for the tax audit report. The PCIT revised the AO's order, holding that the deduction was inadmissible due to the delay.

What were the issues?

Whether delay in filing Form 10DA makes the deduction under Section 80JJAA inadmissible, and if the PCIT's revision order under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 80JJAA,Section 263,Section 44AB,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SMT. ANNAPURNA GUPTA

For Appellant: Ms. Astha Maniar, A.R, Ms. Sudiksha Rani, Sr. DR
For Respondent: Ms. Sudiksha Rani, Sr. DR
Hearing: 20/05/2026Pronounced: 13/07/2026

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 1267/Ahd/2026 (िनधा�रण वष� / Assessment Year : 2022-23) बनाम Shakti Polyweave Private The Pr. Commissioner of / Limited Income Tax -3 Vs. Harmony, 3rd Floor, 15A, Ahmedabad Shree Vidhya Nagar Co Op Housing Society Ltd., Ahmedabad, Gujarat - 380014 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACCS1107M (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Ms. Astha Maniar, A.R. ��यथ� क� ओर से/Respondent by : Ms. Sudiksha Rani, Sr. DR

Date of Hearing 20/05/2026 Date of Pronouncement 13/07/2026

(आदेश)/ORDER Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the revision order of the Ld. Principal Commissioner of Income Tax, Ahmedabad-3, (hereinafter referred to as “PCIT”), dated 27.02.2026 passed under Section 263 of the Income Tax Act, 1961

ITA No.1267/Ahd/2026 [Shakti Polyweave Private Limited vs. PCIT] A.Y. 2022-23 - 2 –

(hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2022-23.

2.

The brief facts of the case are that the assessee filed its return of income for A.Y. 2022-23 on 21.10.2022 declaring total income at Rs.78,98,64,550/- after claiming deduction u/s 80JJAA of the Act of Rs.1,01,50,833/-. The Ld. PCIT noted that the due date for filing of Form 10DA / tax audit report u/s 44AB of the Act was 30.09.2022, whereas, the Form 10DA was filed by the assessee on 20.10.2022 i.e. after due date of filing of tax audit report. The Ld. PCIT observed that the assessee had claimed deduction u/s 80JJAA of the Act of Rs.1,01,50,833/- being 30% of the total cost of additional employees employed during the year and previous two years. He observed that according to sub-section (2) of Section 80JJAA of the Act, the deduction of Rs.1,01,50,833/- was not allowable on account of delay in filing the Form 10DA. He, therefore, held that the order passed by the Assessing Officer (in short ‘the AO’) u/s 143(3) of the Act was erroneous and prejudicial to the interest of the revenue as the AO had allowed the claim of deduction u/s 80JJAA of the Act, which was not admissible due to delay in filing tax audit report / Form 10DA. Being aggrieved by the order of the Ld. PCIT, the assessee has come in appeal before us.

3.

We have heard the rival contentions and gone through the record. The Ld. Counsel for the assessee has submitted that

ITA No.1267/Ahd/2026 [Shakti Polyweave Private Limited vs. PCIT] A.Y. 2022-23 - 3 –

though there was a delay in filing the Form 10DA, however, the same was filed before filing of return of income. That the said Form 10DA was available to the AO, even before the start of assessment proceedings. The Ld. Counsel, in this respect, has relied upon the following case laws to stress the point that though, the filing of the tax audit report in Form 10DA is mandatory condition for claiming of deduction, however, the delay in filing the tax audit report is not fatal so as to deny the claim of deduction u/s 80JJAA of the Act, if the same is made available to the AO at the time of processing of the return of income or at the time of framing of the assessment: i. Analytix Business Solution (I) Pvt. Ltd. vs. ITO, 2025 (7) TMI 960 (ITAT, Ahmedabad) ii. Sunrise Ind. (India) Ltd. vs DCIT, 2025 (6) TMI 2024 (ITAT, Ahmedabad) iii. Metro Brands Ltd. vs. DCIT, 2025 (6) TMI 2075 (ITA, Mumbai)

4.

The Ld. DR has not cited any distinguishing case laws. The case of the assessee is of claim of deduction u/s 80JJAA of the Act and not of claim of exemption u/s 10 of the Act. It has been held time and again by the various Courts of law that the deduction cannot be denied to an assessee for delay in filing the tax audit report, if the same is otherwise available on record at the time of processing of a return of income or framing of the assessment. The order of the AO, thus, cannot be said to be erroneous in this case.

ITA No.1267/Ahd/2026 [Shakti Polyweave Private Limited vs. PCIT] A.Y. 2022-23 - 4 –

Therefore, exercise of revision jurisdiction by the Ld. PCIT in this case is bad in law. Consequently, the revision order passed by the Ld. PCIT u/s 263 of the Act is, hereby, quashed.

5.

In the result, the appeal of the assessee stands allowed.

This Order pronounced on 13/07/2026 under Rule 34(4) of the ITAT Rules

Sd/- Sd/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 13/07/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant ��यथ� / The Respondent. 2. 3. संबंिधत आयकर आयु� / Concerned CIT आयकर आयु�(अपील) / The CIT(A)- 4. 5. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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