AKSHAR ELECINFRA PRIVATE LIMITED,VADODARA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1 (1) (1), VADODARA, VADODARA

Facts

The assessee claimed a deduction of Rs.7,02,975/- under Section 80JJAA for AY 2021-22, which was a continuation from earlier years for which Form 10DA had been filed. The deduction was disallowed by the CPC under Section 143(1) and upheld by the CIT(A) solely because Form 10DA was not filed for the current year, despite the assessee's claim that no new employment was made and the e-filing portal had technical issues preventing the filing. The AR argued that the non-filing was due to technical issues on the portal.

Held

The Tribunal held that the disallowance was technical in nature, acknowledging that the claim related to earlier years and the portal did not allow filing Form 10DA without new employment. Considering this technical barrier, the matter was restored to the Jurisdictional Assessing Officer for verification and allowance of the claim.

Key Issues

Whether a deduction under Section 80JJAA can be disallowed due to non-filing of Form 10DA for a continuing claim in a subsequent year, when no new employees were hired and the e-filing portal posed technical difficulties for filing.