SEARCE LOGISTICS ANALTICS LLP,PUNE vs. DCIT, CIR-2, PUNE, PUNE

The learned CIT(A) erred in law and on facts in upholding the disallowance of exemption u/s 10AA of the ITA, 1961 amounting to Rs. 6,59,05,046/-, despite the appellant having duly filed Form 56F manually on 08/10/2019 i.e. before completion of assessment and complied with all conditions for claiming the exemption.

The appellant submits that the delay in filing Form No. 56F constitutes a mere procedural or technical default, which is curable in nature, as consistently upheld by various judicial pronouncements.

Appellant craves leave to add / amend /modify/delete all / any of the grounds of appeal.”

We have heard both the parties and perused the records. In this case, Assessee filed Return of Income for A.Y.2018-19 on 30.11.2018 claiming deduction u/s.10AA of Rs.6,59,05,043/-. The Assessing Officer during the scrutiny proceedings noted that Assessee has not filed Form No.56F along with the Return of Income. During the scrutiny proceedings, Assessee uploaded Form

The ld.CIT(A) confirmed the disallowance made by the AO.

Aggrieved by the order of the ld.CIT(A), Assessee has filed appeal before this Tribunal.

1 Thus, the only issue before us is whether the Assessee is eligible for exemption u/s.10AA of the Act, even though admittedly Form No.56F was filed on 09.10.2019 during assessment proceedings. As per Section 10AA r.w.s 10A(5) deduction under section 10AA shall not be allowed, unless the Assessee furnishes Report of an Accountant in Form Number 56F as per Rule 16D of the Income Tax Rules, along with the Return of Income.

2 The Hon’ble Madras High Court in the case of PCIT Vs. Astrotech Steels P. Ltd. [2025] 175 taxmann.com 285 (Madras) vide order dated 03.06.2025 has held as under :

We agree with the ITAT that the facts in the case of Principal Commissioner of Income-tax v. Wipro Ltd. [2022] 140 taxmann.com 223/288 Taxman 491/446 ITR 1 (SC) were different. In that case, assessee initially made the claim and did not seek to carry forward losses, but during the assessment proceedings, the assessee had taken an altogether different stand and sought withdrawal of the initial deduction claimed in the return of income and sought to carry forward losses. In the case at hand, the deduction under Section 10AA of the Act has been claimed in the original return of income which was filed within the prescribed time, but Form 56F was filed about 50 days later.

Assessee having duly fulfilled the substantial requirement as well as the procedural requirement, though there is a minor technical breach in fulfillment of the procedural requirement, the CIT(A) as well as the ITAT have opined that the delay in filing Form 56F would not be fatal to the substantive claim of the assessee. In fact, what has also weighed in the mind of the ITAT is that the same claim had been allowed to assessee and this was the sixth assessment year of claiming the amount of deduction.” Unquote

3 Similarly, ITAT Mumbai in the case of Fortrea Scientific Private Limited Vs ACIT in ITA No.5678/MUM/2024 for A.Y.2016-17 vide order dated 18.12.2024 held that once form

No contrary decision of Hon’ble Juri ictional High Court has been brought to our notice. Ld.DR for the Revenue relied on the decision of the Hon’ble Supreme Court in the case of PCIT Vs. Wipro Limited 446 ITR 1, however, Hon’ble Madras High Court has distinguished the decision of Hon’ble Supreme Court.

Respectfully following the Hon’ble Madras High Court and ITAT Mumbai(supra), we hold that since assessee had filed Form No.56F during the assessment proceedings, Assessee is eligible for exemption u/s.10AA of the Act. Accordingly, ground of appeal raised by the assessee is allowed.

In the result, appeal of the assessee is allowed.

गधर्ाफ़धइल / Guard File. आदेशधिपसधर / BY ORDER,