Form 10BA filing Mandatory to claim Section 80GG Deduction: ITAT Bangalore

K.R. Madhusudhan Vs ACIT (ITAT Bangalore)

Introduction: The recent decision by the Income Tax Appellate Tribunal (ITAT) Bangalore in the case of K.R. Madhusudhan vs ACIT has clarified the requirement of submitting Income Tax Form No. 10BA for claiming deduction under Section 80GG of the Income Tax Act. This article provides a detailed analysis of the case and its implications.

Detailed Analysis: In the appeal directed against the order of the NFAC for the assessment year 2019-20, the appellant, K.R. Madhusudhan, contested the denial of deduction under Section 80GG of the Income Tax Act. The Assessing Officer (AO) and the NFAC had rejected the claim on the grounds that the deduction was available only to individuals and not to Hindu Undivided Families (HUFs).

However, upon examining the provisions of Section 80GG, the ITAT observed that the section does not specify the nature of the assessee eligible for the deduction, merely mentioning “assessee.” Therefore, the tribunal concluded that the deduction cannot be denied solely on the basis of the assessee being an HUF.

Nevertheless, the ITAT emphasized the necessity of filing Form No. 10BA, as prescribed by Rule 11B of the Income Tax Rules, 1963, for claiming the deduction under Section 80GG. The case was remitted back to the AO to consider the deduction after verifying the submission of Form No. 10BA.

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