Sunrise Industries (India) Ltd. Vs DCIT (ITAT Ahmedabad)
The ITAT Ahmedabad allowed the assessee’s appeal against the order dated 26-12-2024 passed by CIT(A)/Addl./JCIT(A), Faridabad for assessment year 2023-24. The assessee had declared total income of Rs. 6,80,46,430/- and claimed deduction of Rs. 72,04,913/- under Section 80JJAA of the Income-tax Act. Form No. 10DA, required under Rule 19AB and Section 80JJAA, was filed on 31-10-2023, after the stipulated period of one month before the due date of filing the return. The return was processed under Section 143(1) without allowing the deduction on the ground that Form 10DA had been filed after the prescribed time, resulting in addition of Rs. 72,04,913/-. The assessee contended before the Tribunal that the delay should have been condoned and relied upon Akuntha Projects (P) Ltd. vs. DD-CPC (2024) 162 taxmann.com 861 (Ahd-Tribunal) and Cosmos Entitech Pvt. Ltd. vs. DCIT (ITA No 1773/Ahd/2024 order dated 20-03-2025). The Tribunal noted that the CIT(A) had stated that the CBDT, rather than the CIT(A), had authority to grant condonation. However, considering the circumstances and the decisions referred to in the order, the Tribunal held that the Section 80JJAA deduction could not be denied merely because Form 10DA was uploaded after the due date. It treated the lapse as procedural and allowed the appeal. The order was pronounced on 21-05-2025.
Section 80JJAA Deduction and Form 10DA
The assessee filed its return of income for assessment year 2023-24 declaring total income of Rs. 6,80,46,430/-. The assessee claimed deduction of Rs. 72,04,913/- under Section 80JJAA of the Income-tax Act.
To avail the deduction, Form No. 10DA was required to be filed under Rule 19AB and Section 80JJAA one month before the due date of filing the return of income. The assessee filed Form 10DA on 31-10-2023 along with the return.
The return was processed under Section 143(1) without allowing the Section 80JJAA deduction. The reason stated was that Form 10DA had not been filed within the prescribed time, namely one month before the due date of filing the return of income on 30-09-2023. The resulting addition was Rs. 72,04,913/-, representing the deduction claimed by the assessee.
Proceedings Before CIT(A)
Aggrieved by the order under Section 143(1) dated 22-12-2023, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal.
Before the Tribunal, the assessee submitted that Form 10DA had been filed on 31-10-2023 along with the return and that, although it was filed after the prescribed period, the delay should have been condoned. The assessee stated that, due to certain reasons, the Form could not be uploaded within the prescribed time before filing the return.
The learned Departmental Representative relied upon the order under Section 143(1) and the order of the CIT(A).
Tribunal’s Findings on Delayed Form 10DA
The Tribunal noted that the CIT(A) had categorically mentioned in paragraph 4.4 that the CBDT had authority to grant condonation for delay in Form 10DA and not the CIT(A).
However, considering the circumstances of the case and the decision taken by the Tribunal as well as the ratio followed by the Hon’ble Supreme Court and Gujarat High Court, the Tribunal held that the assessee’s claim for deduction under Section 80JJAA could not be denied merely because Form 10DA had been uploaded after the due date prior to 30 days from the filing of the return of income.
The Tribunal noted that the assessee had filed the Form along with the return of income and held that the lapse was procedural. It concluded that the assessee could not be denied the deduction on that ground where the assessee was otherwise entitled to the deduction had Form 10DA been filed within the stipulated time.
Final Decision
The Tribunal allowed the assessee’s appeal.
Order pronounced in the open court on 21-05-2025.
Cases Discussed
- Akuntha Projects (P) Ltd. vs. DD-CPC (2024) 162 taxmann.com 861 (Ahd-Tribunal)
- Cosmos Entitech Pvt. Ltd. vs. DCIT (ITA No 1773/Ahd/2024 order dated 20-03-2025)
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed against the order dated 26-12- 2024 passed by CIT(A)/Addl./JCIT(A), Faridabad for assessment year 2023-24.
2. The grounds of appeal are as under:-
”1. The Learned ADDL/JCIT (Appeals), Faridabad erre d in holding that the Jt. Commissioner of Income Tax (Ap peals) / Commissioner of Income Tax (Appeals) do not have any authority to grant condonation for delay in filing Form No. 10DA.
2. The Learned ADDL/JCIT (Appeals), Faridabad erred in disregarding the submission made during the course of appellate proceedings.
3. The appellant company craves the right to add to or alter, amend, substitute, delete or modify all or any of the above grounds of appeal.”
3. The assessee filed return of income for assessme nt year 2023-24 thereby declaring total income at Rs. 6,80,46,430/- dated 31-10-2020. The assessee claime d deduction u/s. 80JJAA of the Act amounting to Rs. 72,04,913/- while filing the return of income. To avail benefit of deduction u/s. 80JJAA of the Act, the Form No. 10DA has been successfully filed on 31-10-2023, which was required to be filed one month before due date of filing of return of income as per Rule 19AB and Section 80JJA A of the Act. The return was processed u/s. 143(1) of the Act without considering the benefit of deduction u/s. 80JJAA of the Act by stating the reason for deduction u/s. 80JJAA is not allowable if Form 10DA is not filed within the due date specified in the Act i.e. one month before the due date of filing of return of income on 30-09-2023 and thus m ade addition for Rs. 72,04,913/- as the assessee filed Form 10DA on 31-10-2023 and there is a delay in filing F orm 10DA by 30 days.
4. Aggrieved by the order u/s. 143(1) of the Income Tax Act dated 22-12-2023, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
5. The ld. A.R. submitted the assessee has filed F orm 10DA on 31-10-2023 along with returns and though th e same is filed after 30 days as per the provisions, the same should have been condoned by the CIT(A). Due to so me reasons, the said Form was not uploaded within the prescribed time prior to filing of the returns and therefore the delay may be condoned. The ld. A.R. relied upon the decision of the Tribunal in case of Akuntha Projects (P) Ltd. vs. DD-CPC (2024) 162 taxmann.com 861 (Ahd-Tribunal), Cosmos Entitech Pvt. Ltd. vs. DCIT (ITA No 1773/Ahd/2024 order dated 20-03-2025).
6. The ld. D.R. relied on the order u/s. 143(1) and the order of the CIT(A).
7. We have heard both the parties and perused all t he relevant materials available on record. It is pertinent to note that the CIT(A) has categorically mentioned in para 4.4 that the CBDT has authority to grant condonation for delay in Form 10DA and not that of CIT(A). But looking t o the circumstances of the case and the decision taken by the Tribunal as well as the ratio followed by Hon9ble Supreme Court and Gujarat High Court, the claim of the assessee for deduction u/s. 80JJAA of the Act cannot be denied only for the reason that the assessee has uploaded Form 10DA after the due date prior to 30 days from the filing of the return of income. The assessee has filed the Form along with the filing of return of income. Thus, it is mere lapse on part of the assessee on the procedural aspects, the assessee cannot
be denied the claim of deduction which the assessee is entitled if he would have filed Form 10DA within th e stipulated time. Hence, the appeal of the assessee is allowed.
8. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 21-05-2025
