ILINK MULTITECH SOLUTIONS LTD., SUCCESSOR IN INTEREST OF M/S. ILINK SYSTEMS PVT. LTD.,CHENNAI vs. DCIT, CORP. CIRCLE-1(1), CHENNAI

ITA 3130/CHNY/2026Status: DisposedITAT Chennai07 October 2026AY 2020-2113 pages
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What did the Tribunal hold?

On the issue of Section 10AA deduction, the Tribunal held that the delay in furnishing Form 56F is not fatal to the assessee's claim, respectfully following the judgment of the Hon'ble Jurisdictional High Court. The Tribunal noted that the claim was made in the original return filed within time, and the delay in filing Form 56F was approximately 50 days. The Tribunal also considered that the same claim had been allowed in previous assessment years. Therefore, the disallowance of Rs. 2,08,16,896/- was deleted, and the issue was allowed. Regarding the Section 43B disallowance, the Tribunal found that the claim for deduction arose from the reversal of excess gratuity provision from earlier years, not from actual payment of a disallowed liability. The Tribunal noted that the factual verification of whether the provision was disallowed in earlier years and whether the reversal would lead to double taxation was required. Accordingly, the issue was remitted back to the Assessing Officer (AO) for fresh examination based on facts and evidence, keeping in mind the judgment in CIT vs. Bharat Earth Movers. The penalty appeal was set aside to the file of the AO for de-novo consideration.

What were the facts?

The assessee, Ilink Multitech Solutions Ltd., successor-in-interest of Ilink Systems Pvt. Ltd., filed appeals against orders of the Commissioner of Income Tax (Appeals), NFAC, Delhi, for Assessment Year 2020-21. The appeals were filed with a delay of 88 days, attributed to the assessee company undergoing amalgamation between December 2025 and February 2026, which caused disruption in email monitoring and compliance responsibilities. The Tribunal condoned the delay. The appeals challenged the disallowance of deduction under Section 10AA amounting to Rs. 2,08,16,896/- and the disallowance of gratuity provision reversal under Section 43B amounting to Rs. 6,15,514/-. The penalty appeal was also under challenge.

What were the issues?

1. Whether the First Appellate Authority (FAA) erred in confirming the disallowance of deduction under Section 10AA of the Income Tax Act, 1961, amounting to Rs. 2,08,16,896/-, when the assessee filed Form 56F with a revised return after the due date. - Assessee's contention: The requirement of furnishing Form 56F is procedural, and substantial compliance was achieved by filing it with the revised return. The delay should not be fatal to the substantive claim. The FAA's reliance on PCIT vs. Wipro Ltd. is distinguishable. - Revenue's contention: Not recorded in the judgment. 2. Whether the FAA erred in confirming the disallowance under Section 43B of the Act amounting to Rs. 6,15,514/-, which represented the reversal of excess gratuity provision from earlier years. - Assessee's contention: The excess provision was disallowed in earlier years, and its reversal should not be taxed again, as it would amount to double taxation. Reliance was placed on CIT vs. Bharat Earth Movers. - Revenue's contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 10AA,Section 43B,Section 139(1),Section 139(5),Section 143(3),Section 144B,Section 250,Section 270A,Section 10A(5),Section 10B(8),Section 40A(7)(a)

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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & MS PADMAVATHY S

Hearing: 30.09.2026Pronounced: 07.10.2026

PER GEORGE GEORGE K, VICE PRESIDENT:

These appeals filed by the assessee are directed against two orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 10.12.2025 & 17.12.2025 passed under section 250 of the Income Tax Act, 1961

ITA Nos.3129 & 3130//CHNY/2026 Ilink Multitech Solutions Ltd. (herein

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