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Facts
The assessee claimed a deduction under section 80JJAA, which the Assessing Officer disallowed because Form 10DDA was uploaded after the return filing due date but before processing. The CIT(A) allowed the deduction, concluding that delayed submission cannot deny it, but controversially directed the AO to verify other conditions under section 80JJAA(2). The assessee's appeal before the Tribunal challenges this specific direction of the CIT(A).
Held
The Tribunal held that while processing returns under section 143(1), the AO's scope is limited to verifying completeness of details, not examining other conditions, which would necessitate a scrutiny assessment. The Tribunal vacated the CIT(A)'s direction to satisfy other conditions, asserting that the assessee is entitled to the deduction under section 80JJAA(2) and the original disallowance by the AO is deleted.
Key Issues
Whether a deduction under section 80JJAA can be denied solely due to delayed submission of Form 10DDA if uploaded before processing, and whether the CIT(A) can direct the AO to verify other conditions after allowing the deduction.
Sections Cited
80JJAA, 80JJAA(2), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
आयकर अपील�य अ�धकरण,च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘A’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ �नधा�रण वष� / Assessment Year: 2023-24 Dada Motor Enterprises LLP, Vs The DCIT, Savitri-II, Dholewal Chowk, Circle-1, Millerganj, S.O. Ludhiana. Ludhiana. �थायी लेखा सं./PAN NO: AARFD7944D अपीलाथ�/Appellant ��यथ�/Respondent Assessee by : Shri Parikshit Aggarwal, CA Revenue by : Shri Vivek Vardhan, Addl.CIT, Sr.DR Date of Hearing : 24.02.2026 Date of Pronouncement : 10.03.2026 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP
The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 25.11.2024 passed for assessment year 2023-24.
The solitary grievance of the assessee is that ld.CIT (Appeals) has erred in deleting the disallowance of Rs.18,11,579/- which was A.Y.2023-24 2 added by denying the claim made u/s 80JJAA of the Income Tax Act.
With the assistance of ld. Representative, we have gone through the record carefully. It emerges out that the claim of the assessee u/s 80JJAA(2) of the Act was disallowed by the AO on the ground that Form 10DDA was not uploaded before the due date of filing of the return, but before processing of the return, this form was uploaded. The ld.CIT (Appeals) while examining this aspect has followed the order of the ITAT in the case of Shri Shyam Charan Sewa Trust Vs DCIT(CPC) Bangalore Anjana Foundation, Vadodara Vs AO, and judgement of Hon'ble Gujrat High Court in 157 taxmann.com 550 (2023) in the case of Indian Panelboard Manufacturers v. DCIT. The ld.CIT (Appeals) was of the view that deduction is admissible to the assessee and on account of delayed submission of the Form 10DDA, it cannot be denied, but in paragraph No.6.6, ld.CIT (Appeals) while allowing the claim of the assessee has directed the AO to satisfy the other conditions laid down u/s 80JJAA(2). The grievance of the assessee pertains to this direction.
ITA No.25/CHD/2025 A.Y.2023-24 3
On due consideration of the above facts and circumstances, we are of the view that while processing the returns u/s 143(1), ld. AO cannot examine the other conditions. He has to just find out whether complete details have been uploaded or not. If other conditions are to be verified, then case ought to have been selected for scrutiny assessment. The limited jurisdiction before the ld.CIT (Appeals) in the impugned order was whether on account of delayed submission of Form 10DDAA, deduction u/s 80JJAA(2) could be disallowed or not. Once ld.CIT (Appeals) was of the view that it cannot be disallowed, then he cannot amplify the scope of enquiry.
He simply directed the AO to grant this deduction. Accordingly, we vacate the direction of the ld.CIT (Appeals) recorded in paragraph No. 6.6 and hold that assessee is entitled for deduction u/s 80JJAA(2) and the disallowance made by the AO is deleted.
In the result, appeal of the assessee is allowed.
Order pronounced on 10.03.2026.