AML Motors (P) Ltd Vs DCIT (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT), Hyderabad, allowed the appeal filed by AML Motors Private Limited for Assessment Year 2023-24 concerning denial of deduction under Section 80JJAA of the Income Tax Act due to delayed filing of Form No. 10DA.
At the outset, the Tribunal considered a delay of 241 days in filing the appeal before the Tribunal. The assessee explained that the Finance Head, who was responsible for handling tax litigation matters, could not attend to his duties because of the serious medical condition of his wife. Medical records were produced in support of the explanation. The Revenue opposed condonation, contending that the Managing Director was ultimately responsible for filing appeals.
The Tribunal observed that practical realities of corporate functioning could not be ignored and that delegation of responsibilities to specific officials was normal. Since the delay was supported by documentary evidence and there was no material to indicate deliberate negligence, the Tribunal condoned the delay by following the Supreme Court decision in Vidya Shankar Jaiswal v. CIT, which emphasized a liberal and justice-oriented approach in condonation matters.
On merits, the assessee had filed its return of income on 18.10.2023 claiming deduction under Section 80JJAA amounting to Rs.75,08,759. Under the Act and Rule 19AB, Form No. 10DA from a Chartered Accountant was required to be furnished on or before 30.09.2023. However, the assessee filed Form No. 10DA on 16.10.2023 and the return on 18.10.2023.
