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Facts
The assessee filed its return of income belatedly and also filed Form 10DA, required for claiming deduction under Section 80JJAA, after the due date. The AO initially denied the deduction on this ground, which was confirmed by the CIT(A).
Held
Although the AO initially denied the deduction for delay in filing Form 10DA, the AO subsequently allowed the claim during scrutiny assessment proceedings, rendering the appeal infructuous.
Key Issues
Whether the delay in filing Form 10DA is a procedural defect that should not deny the benefit of Section 80JJAA deduction, especially when subsequently allowed by AO.
Sections Cited
80JJAA, 44AB, 143(3), 144B
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
Assessee by : Shri Mahesh O. Rajora, C.A. Revenue by : Shri Swapnil Choudhary, Sr. D/R सुनवाई की तारीख/Date of Hearing : 23/07/2025 घोषणा की तारीख /Date of Pronouncement: 31/07/2025 आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. Commissioner of Income Tax (Appeal)/Addl./JCIT (A) – 4, Delhi [hereinafter ‘the ld. CIT(A)’] dated 25/03/2025 pertaining to AY 2023-24.
The grievance of the assessee reads as under:- “1. The Additional/ Joint Commissioner of Income Tax (Appeals) - 4, Delhi [hereinafter referred to as CIT(A)] erred in confirming the action of Deputy Director of Income Tax, CPC, Bengaluru (hereinafter referred to as the AO) in not granting deduction of Rs.10,39,644/- u/s 80JJAA of the Income Tax Act, 1961 ('the Act) as claimed by the Appellant in its return of income. The Appellant submits that it satisfies the conditions prescribed u/s 80JJAA of the Act and accordingly is eligible to claim deduction of an amount equal to 30% additional employee cost incurred by it during the previous year and immediately preceding year to previous year; hence the CIT(A) ought to have allowed deduction of Rs.10,39,644/- u/s 80JJAA of the Act.
2 2. The CIT(A) erred in confirming the action of the AO in not granting the deduction of Rs. 10,39,644/- u/s 80JJAA of the Act, on the ground that Appellant did not file Form No. 10DA on or before the specified date (i.e. 31.10.2023) u/s 44AB of the Act. The Appellant submits that it has filed Form No. 10DA on 29.11.2023 (i.e. after 31.10.2023 but before due date of filing return of income i.e. 30.11.2023).
The Appellant submits that delay in filing of Form No. 10DA is only a procedural defect and the CIT(A) ought to have allowed the deduction of Rs. 10,39,644/- u/s 80JJAA of the Act as claimed by the Appellant in its return of income.
The Appellant reserves the right to add, amend, alter or vary all or any of the above grounds of appeal as they or their representatives may think fit.”