Analytix Business Solution (I) Pvt. Ltd Vs ITO (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT) Ahmedabad has ruled in favor of Analytix Business Solution (I) Pvt. Ltd., allowing a deduction of ₹92,60,717 under Section 80JJAA of the Income Tax Act, 1961, despite a 29-day delay in filing Form 10DA. The Tribunal deemed the requirement to file Form 10DA by a stipulated deadline as procedural rather than mandatory, emphasizing that a substantive benefit should not be denied due to such a lapse.
The case arose from the processing of Analytix Business Solution’s income tax return for Assessment Year 2023-24 by the Computerized Processing Centre (CPC). The CPC denied the Section 80JJAA deduction on the sole ground that Form 10DA, which is required for claiming this deduction, was filed on November 29, 2023, instead of the due date of October 31, 2023. This delay of 29 days led to the disallowance. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the CPC’s decision, stating that timely filing of Form 10DA was a mandatory requirement.
Assessee’s Arguments and Judicial Precedents
Before the CIT(A) and subsequently the ITAT, Analytix Business Solution argued that the requirement of filing Form 10DA has been held by various judicial authorities to be a directory requirement, not a mandatory one. Therefore, a delay in its submission should not impact the substantive benefit of the deduction. The company highlighted that the deduction amount was eligible and duly reflected in Form 3CA/3CD and the return of income. Crucially, Form 10DA was filed before the company’s income tax return was submitted and before the processing of the intimation under Section 143(1).
