DCIT Vs Microland Limited (ITAT Bangalore)
Assessee engaged in the business of providing IT Infrastructure management services, Technical Support services etc. Assessee filed its return at Rs. 1,54,57,78,798/- with Tax Liability of Rs. 35,45,45,411/-. Subsequently, the assessee filed a revised return admitting total income at Rs. l,54,57,78,798/- with a tax liability of Rs. 35,26,36,341/- and accordingly claimed refund of Rs. 19,09,070/-. Original return has been processed u/s. 143(1) of the Act on 22.12.2023 by making the following adjustments:
(a) ICDS adjustment of Rs. 14,37,45,699/- has been added back &
(b) Denial of deduction under section 80JJAA amounting to Rs. Rs.1,12,46,618/- as claimed by the assessee.
Assessee has preferred an appeal before Addl/JCIT(A) who allowed the appeal by observing that the ICDS adjustments were made under the head ICDS-I & ICDS-VI relates to accounting policies and changes in the exchange rates. As per adjustment, the net negative effect of Rs. 14,37,45,699/- was considered by the assessee in the relevant Col. No. 13(e) of Form 3CD for the AY 2023-24. Adjustment made by the AO (CPC) adding back the negative amount of Rs. 14,37,45,699/- is not justifiable especially when such adjustments are not permissible u/s 143 (1) without any valid reasons and accordingly, directed the Jurisdictional AO to delete the above addition of Rs. 14,37,45,699/-. Further, with regard to the denial of deduction of Rs. Rs.1,12,46,618/-u/s 80 JJA, the ADDL./JCIT (A) noted from the original ITR was filed after opting for the concessional tax regime u/s 115BAA as indicated in the Col No. (e) of the “Filing Status”. Furthermore, it is observed that the assessee had previously opted for concessional tax regime based on Form 10IC filed in AY 2020-21. Assessee’s choice was duly accepted by the AO (CPC) while processing the return u/s 143(1) for the AY 2023-24. However, AO (CPC) denied the appellant’s claim for deduction under section 80JJAA amounting to Rs. 1,12,46,618/- for the AY 2023-24 without providing valid reasons. Since the appellant filed the original return of Income for the AY 2023-24 before the extended due date of 30.11.2023, therefore the denial of deduction u/s 80JJAA lacks validity.
