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Facts
The assessee, an LLP, filed its return of income claiming deduction under Section 10AA for its eligible SEZ unit. The CPC disallowed the deduction on the grounds that the return was filed beyond the due date. The CIT(Appeals) upheld the CPC's decision.
Held
The Tribunal held that the assessee had filed the requisite Form 56F before the due date and the revised return did not alter the deduction claimed. Therefore, the assessee is entitled to the deduction under Section 10AA.
Key Issues
Whether the deduction under Section 10AA is allowable when the return of income is filed after the due date, despite Form 56F being filed within the prescribed time.
Sections Cited
10AA, 139(1)
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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI WASEEM AHMED & SHRI PRAKASH CHAND YADAV
Per Prakash Chand Yadav, Judicial Member
The present appeal of the assessee is arising out of the order of the ld. CIT(Appeals), National Faceless Appeal Centre, Delhi (NFAC) dated 08.11.2024 and relates to assessment year 2022-23.
The brief facts of the case as coming out from the orders of the authorities below are that the assessee is a LLP having its registered office at Bangalore and engaged in the business of providing back office support services in the nature of Information Technology enabled Services (IteS). For the impugned assessment year it has filed return of income on 28.11.2022 along with audit report in Form 56F in respect of eligible SEZ unit computing the deduction allowable u/s. 10AA of the Act. The return of income filed by the assessee was processed by CPC, Bangalore on 14.12.2022 wherein certain adjustments were made while processing the return. Thereafter, the assessee filed a revised return on 22.12.2022. It is pertinent to note here that there is no additional impact on the taxable income and tax liability, after the filing of revised return, when compared to original return of income dated 28.11.2022. The revised return filed by the assessee has been processed by the CPC on 22.12.2022 disallowing the claim of deduction u/s. 10AA on the ground that return of income filed by the assessee has been furnished beyond the due date u/s. 139(1). Aggrieved with the order of CPC, the assessee filed appeal before the ld. CIT(Appeals). However, the ld. CIT(Appeals) could not find force in the argument of the assessee and held that assessee is not entitled for deduction u/s. 10AA of the Act.
Aggrieved with the order of the ld. CIT(Appeals), the assessee has come up in appeal before us.
The ld. counsel for the assessee invited attention of the Bench to page …….. of appeal set which is intimation issued by the CPC to contend that the due date for filing return of income was 30.11.2022 and the assessee has furnished original return of income u/s. 139(1) on 28.11.2022. The ld. counsel also pointed out that Form 56F has been uploaded at the e-filing portal of the department on 28.10.2022 and hence From 56F was duly submitted before one month of due date of filing of return of income u/s 139(1) of the Act. The ld. counsel drawn attention of the Bench towards page 12 of the ld. CIT(A)’s order and contended that the findings of ld. CIT(Appeals) are factually incorrect.
The ld. DR relied on the orders of authorities below.
We have heard the rival submissions and perused the material available on record. Certain dates which go to the root of the matter are as under:-
Date Event Observation 30.11.2022 Due date for filing of return of income Reference can be made to for the impugned year page 9 of CIT(A)’s order. 28.10.2022 Assessee filed Form 56F at the e-portal Page 193 of appeal set. of the department 28.11.2022 Assessee filed return of income. Return processed by CPC on 14.12.2022. 22.12.2022 Assessee filed revised return. No impact on taxable income.
Perusal of the above sequence of events would prove beyond doubt that assessee has filed the requisite Form 56F before one month of the due date for filing return of income and hence, in our view, assessee is entitled for deduction u/s. 10AA. So far as the observation of the CPC that assessee has revised its return of income at a later point of time has nothing to do with the deduction u/s. 10AA inasmuch as it is evident from record that assessee has not altered the figures of claim of deduction u/s. 10AA as per original return in the revised return of income. Therefore, we are of the considered opinion that assessee is entitled to deduction u/s. 10AA of the Act. In view of the above, the appeal of the assessee is allowed.
Pronounced in the open court on this 17th day of March, 2025.