Cosmos Engitech Pvt Ltd Vs DCIT (ITAT Ahmedabad)
The Ahmedabad Bench of the Income Tax Appellate Tribunal considered the assessee’s appeal against the order dated 30.8.2024 passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi under section 250 of the Income Tax Act, 1961, arising from an order passed by the Assessing Officer under section 143(3) for Assessment Year 2023-24. The sole issue concerned denial of the assessee’s claim of deduction under section 80JJAA on account of delay in filing Form No. 10DA relating to employees employed by the assessee-company.
The assessee submitted that the Chartered Accountant’s report in Form No. 10DA had been received on 22/09/2023 and that the UDIN had also been generated on 22/09/2023. However, due to certain issues, the report could not initially be uploaded online. According to the assessee, it was subsequently uploaded/filed before the concerned Assessing Officer applied his mind and before communication of intimation by the CPC under section 143(1). The lower authorities had rejected the deduction on the ground that Form No. 10DA was not filed on or before the due date prescribed under section 44AB, stated in the order as 30.9.2023.
The Tribunal noted that the audit report in Form No. 10DA had been filed with the concerned Assessing Officer before processing of the return. It observed that section 80JJAA is a deduction provision and not an exemption provision. Relying on the decision of the Hon’ble Supreme Court in CIT vs. G.M. Knitting Industries (P.) Ltd. [2016] 71 taxmann.com 35, the Tribunal held that the matter required reconsideration. It therefore set aside the impugned order of the CIT(A) and restored the matter to the Assessing Officer to examine the assessee’s case.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The above appeal has been filed by the assessee against order passed by the Ld.Commissioner of Income-Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as <ld.CIT(A)] dated 30.8.2024 under section 250 of the Income Tax Act, 1961 (“the Act” for short) arising out of the order of passed by the Assessing Officer under section 143(3) of the Act pertaining to Assessment Year 2023-24.
2. The sole issue involved in this appeal is regarding the denial of claim of deduction under section 80JJAA of the Act on account of delay in filing of Form No.10DA, which is relating to number of employees employed by the assessee-company.
3. The ld.counsel for the assessee has submitted that both the lower authorities have rejected the claim of the assessee under section 80JJAA of the Act holding that report in Form no.10DA was not filed on or before the due date prescribed under section 44AB of the Act, which was 30.9.2023. The ld.counsel for the assessee has brought our attention to the impugned order of the ld.CIT(A) to submit that it was duly submitted before the ld.CIT(A) that the deduction claimed u/s 80JJAA was based on the report of Chartered Accountant received on 22/09/2023, and even UDIN -Unique Document Identification Number was also generated on the 22/09/2023 by the company9s Chartered Accountant, but due to some issues, such report could not be uploaded online. However, the same was uploaded/filed even before the application of mind by the concerned Assessing Officer (in short <AO=), and before the communication of intimation by the CPC under section 143(1) of the Act.
4. We note that the said audit report in form no.10DA was filed to the concerned AO before processing of the return. The section 80JJA is the deduction provision and not the exemption of provision. The ld.AO was supposed to consider the said report at the time of processing of the return of income. The law laid down by the Hon9ble Supreme Court in the case of CIT v. G.M. Knitting Industries (P.) Ltd. [2016] 71 taxmann.com 35 is squarely applicable to the case on hand.
We, therefore, set aside the impugned order of the ld.CIT(A) and restore the matter to the AO to examine the case of the assessee. If
