DCIT Vs Meghmani Limited Liability Partnership (ITAT Ahmedabad)
Technical Glitch in Portal No Bar – Form 56F Upload Failure Due to Server Issues- Deduction u/s 10AA Allowed ITAT Ahmedabad:
ITAT Says Filing of Form 56F is Directory, Not Mandatory
Revenue filed appeal against order of CIT(A) dated 12.06.2025 allowing deduction u/s 10AA to Meghmani LLP.
Assessee had filed return u/s 139(1) claiming deduction of Rs.4.82 crore u/s 10AA. CPC, while processing return u/s 143(1), disallowed claim due to non-filing of prescribed Form 56F.
Before CIT(A), Assessee explained that despite repeated attempts on 25.01.2024, 26.03.2024 & 09.04.2024, uploading of Form 56F failed due to technical/server errors on the Department’s portal. Eventually, Form 56F was successfully uploaded on 17.09.2024, prior to commencement of appellate hearing. Assessee also pointed out that in earlier years, Form 56F was filed within time & deduction u/s 10AA was regularly allowed. CIT(A) accepted Form 56F, directed AO to verify & allow deduction.
Revenue contended that deduction was rightly denied as Form 56F was not filed within time.
Tribunal observed that delay was solely attributable to system glitches & not to Assessee’s fault. Once Form 56F was submitted before CIT(A), it satisfied the directory requirement of law. Relying on Supreme Court in CIT Vs G.M. Knitting Industries Pvt. Ltd. (CA No.10782/2013, dated 24.07.2015), Tribunal held that filing of prescribed forms is directory & can be entertained during assessment/appellate proceedings. Since Assessee had a consistent history of filing Form 56F in earlier years, denial of deduction merely for technical lapse was unjustified. Accordingly, Tribunal upheld CIT(A)’s order & dismissed Revenue’s appeal. Thus, deduction of Rs.4.82 crore u/s 10AA was allowed.
