360 One Distribution Services Limited Vs DCIT (ITAT Mumbai)
The assessee filed an appeal before the ITAT Mumbai challenging the order dated 30.07.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2018-19. The primary issue in dispute was the denial of deduction under Section 80JJAA of the Income Tax Act, 1961.
The assessee, a public company engaged in distribution of third-party investment products and investment advisory services, had filed its return of income on 31.10.2018 declaring total income of Rs. 8,72,15,820 under normal provisions and book profit of Rs. 36,54,47,803 under Section 115JB. The return was selected for scrutiny and assessment was completed under Section 143(3), accepting the returned income under the normal provisions.
Before the CIT(A), the assessee raised a claim for deduction under Section 80JJAA for the first time. It submitted that it had incurred Rs. 10,21,02,413 as additional employee cost in respect of 757 new and regular workmen employed during the year and accordingly claimed deduction of Rs. 3,06,30,724, being 30% of such additional employee cost. In support, it furnished a Chartered Accountant’s report in Form 10DA dated 30.10.2019.
The CIT(A) dismissed the claim on the grounds that the deduction was not claimed in the original return of income filed on 31.10.2018, nor was it raised during assessment proceedings. It was further observed that Form 10DA, a mandatory requirement for claiming deduction under Section 80JJAA, was not filed within the prescribed due date under the Act and Rules. The CIT(A) held that due to non-fulfilment of mandatory procedural requirements, the claim could not be entertained.
