Shakti Polyweave Private Limited Vs PCIT (ITAT Ahmedabad)
The assessee challenged the Principal Commissioner of Income Tax, Ahmedabad-3’s revision order dated 27.02.2026 passed under Section 263 of the Income Tax Act for A.Y. 2022-23. The assessee had filed its return on 21.10.2022 declaring total income of Rs.78,98,64,550 and claimed a deduction of Rs.1,01,50,833 under Section 80JJAA. The PCIT noted that Form 10DA/tax audit report under Section 44AB was due on 30.09.2022 but was filed on 20.10.2022. He therefore held that the deduction was inadmissible due to delayed filing and considered the assessment order under Section 143(3) erroneous and prejudicial to the Revenue.
Before the ITAT, the assessee submitted that Form 10DA, though filed late, was available before the return was filed and was also available to the Assessing Officer before assessment proceedings commenced. The assessee relied on Analytix Business Solution (I) Pvt. Ltd. vs. ITO, Sunrise Ind. (India) Ltd. vs DCIT, and Metro Brands Ltd. vs. DCIT. The Tribunal noted that the Departmental Representative had not cited any distinguishing case laws.
It observed that the claim concerned deduction under Section 80JJAA and not exemption under Section 10, and stated that deduction cannot be denied merely for delayed filing of the tax audit report where it is available on record at the time of processing the return or framing the assessment. The ITAT held that the Assessing Officer’s order could not be considered erroneous and quashed the PCIT’s revision order under Section 263. The assessee’s appeal was allowed.
