DBS Technology Services India Private Limited Vs ACIT (Telangana High Court)
Material Facts
The writ petition challenged the order dated 24.03.2025, whereby the petitioner’s claim for deduction under Section 10AA of the Income-tax Act, 1961 was rejected. The petitioner is an undertaking in a Special Economic Zone (SEZ) engaged in electronic data processing, technology and product support services. Its accounts were audited and Form 56F was issued on 18.11.2019, before the due date for filing the return. The petitioner filed its return of income on 26.11.2019, declaring a total income of Rs. 20,98,120, but inadvertently failed to attach Form 56F. The omission was rectified by uploading Form 56F on 16.12.2019. A notice under Section 143(1)(a) was issued on 09.12.2019, and despite the petitioner’s reply, an intimation dated 10.06.2020 rejected the claim for deduction under Section 10AA.
The petitioner appealed before the Commissioner of Income Tax (Appeals), who, by order dated 25.01.2023 under Section 250, set aside the denial of deduction and directed that the deduction be allowed.
Procedural History
The Revenue appealed before the Income Tax Appellate Tribunal (ITAT), while the petitioner filed cross-objections. By order dated 21.07.2023, the ITAT remanded the matter to the ACIT, CPC, Bangalore, directing issuance of a fresh notice regarding the proposed disallowance under Section 10AA after affording the petitioner an opportunity of hearing through the Jurisdictional Assessment Officer (JAO).
