Case Law Details
Mahendra Kumar Damani Vs ACIT (ITAT Chennai)
Conclusion: Since assessee did not file the Audit Report in Form No.56F as required under the law, AO had rightly disallowed deduction claimed u/s.10AA.
Held: Assessee had filed his return of income for the AY 2016-17 declaring total income of Rs.3,69,990/- after claiming deduction of Rs.75,75,621/- u/s.10AA. The return of income filed by assessee had been processed u/s.143(1) and determined total income of Rs.79,41,610/- and made addition of Rs.75,75,621/- after disallowing deduction claimed u/s.10AA, for non-filing of Audit Report in Form No.56F by an Accountant as required u/s.10AA(8). Assessee carried the matter in appeal before the First Appellate Authority. Before CIT(A), assessee contended that filing of Audit Report as required u/s.10AA(8) was procedural and directory in nature and thus, for non-filing of said Audit Report, deduction claimed u/s.10AA could not be denied, when other conditions prescribed thereunder were satisfied. CIT(A) held AO had rightly disallowed deduction claimed u/s.10AA and thus, rejected arguments of the assessee and sustained additions made towards disallowance of deduction claimed u/s.10AA. It was held that respectfully following the decision the Hon’ble Supreme Court in the case of Pr.CIT v. Wipro Ltd., assessee was not entitled for deduction u/s.10AA, for non-filing of Audit Report in Form No.56F as required u/s.10AA(8). CIT(A) after considering relevant facts has rightly upheld the additions made by the AO.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
These two appeals filed by the assessee are directed against separate, but identical orders of the Commissioner of Income Tax (Appeals), Income Tax Department, National Faceless Appeal Centre, Delhi, both dated 03.08.2022 and pertains to assessment years 2016-17 & 2019-20. Since, the facts are identical and issues are common, for the sake of convenience, these appeals are being heard together and disposed off, by this consolidated order.
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