Case Law Details
Tarasafe International Private Limited Vs DDIT (ITAT Kolkata)
The appeal was filed by the assessee against the order dated 29.02.2024 passed by the Commissioner of Income Tax (Appeals), ADDL/JCIT(A)-5, Mumbai under Section 250 of the Income-tax Act, 1961.
The issue before the Tribunal was whether the delayed filing of the audit report in Form 10DA would disentitle the assessee from claiming deduction under Section 80JJAA of the Income-tax Act when the form was available to the Assessing Officer during the assessment proceedings.
The Tribunal recorded that the assessee filed Form 10DA on 27.10.2023 instead of the due date of 30.09.2023. However, the form was available to the Assessing Officer at the time of processing the return, as the notice under Section 143(1)(a) had been issued by the Central Processing Centre on 23.11.2023.
The Tribunal held that the issue was squarely covered by the decision of the Supreme Court in CIT, Maharashtra Vs. G. M. Knitting Industries Pvt. Ltd. [2016] 12 SCC 272, wherein the Supreme Court held that although filing the prescribed certificate with the return of income is necessary, an assessee remains entitled to the deduction if the certificate is filed before the final assessment order is passed. The Tribunal noted that the Supreme Court had reached this conclusion in the context of deduction under Section 80-IB.
The Departmental Representative relied on the Supreme Court decision in Pr. CIT-III, Bangalore & Anr. Vs. M/s. Wipro Ltd. [2022] 446 ITR 1 (SC). The Tribunal observed that the Wipro decision related to an exemption claimed under Section 10B, which falls under Chapter III of the Income-tax Act, whereas the assessee’s claim under Section 80JJAA falls under Chapter VIA. The Tribunal referred to paragraph 11 of the Supreme Court’s judgment in Wipro Ltd., wherein the Supreme Court clarified that exemption provisions require strict compliance and that decisions interpreting Chapter VIA deductions, including G. M. Knitting Industries Pvt. Ltd., are not applicable while considering claims under Section 10B because Chapters III and VIA operate in different fields.
Relying on the Supreme Court’s decision in G. M. Knitting Industries Pvt. Ltd., the Tribunal held that the issue was covered in favour of the assessee. It set aside the order of the CIT(A) and directed the Assessing Officer to grant the deduction claimed under Section 80JJAA.
Accordingly, the appeal of the assessee was allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal has been preferred by the assessee against the order dated 29.02.2024 of the Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT(A)-5, Mumbai (hereinafter referred to as the “Ld. CIT(A)” passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).
2. The short issue involved in this appeal is as to whether the late filing of audit report in Form 10DA would disentitle the assessee from claiming deduction u/s. 80JJAA of the Act, when the said Form 10DA was available to the Ld. AO at the time of assessment proceedings. The assessee in this case filed the Form 10DA on 27.10.2023 as against the due date of 30.09.2023 but, the same was available to the AO at the time of processing the return of income as the notice u/ s. 143(1)(a) of the Act was issued by the CPC to the assessee on 23.11.2023.
3. The issue is squarely covered by the decision of Hon’ble Supreme Court in the case of CIT, Maharashtra Vs. G. M. Knitting Industries Pvt. Ltd. [2016]12 SCC 272, wherein the Hon’ble Supreme Court has held that, even though it is necessary to file certificate in Form 10CCB along with the return of income, but even if the same has not been filed with the return of income, but the same was filed before the final order of assessment was made, the assessee was entitled to claim deduction u/s. 80-IB of the Act.
4. so far as the reliance of the ld. DR on the another decision of the Hon’ble Supreme Court in the case of Pr. CIT-III, Bangalore & anr. Vs. M/s. Wipro Ltd. reported in [2022] 446 ITR 1 (SC) is concerned, it is to be observed that the said case is relating to the claim of exemption u/s. 10B falling under Chapter III of the I. T. Act. However, the claim of the assessee in the case in hand is u/s. 80JJAA of the Act under Chapter VIA of the Act. The Hon’ble Supreme Court in para 11 of the judgment in the case of M/s. Wipro Ltd. (supra) has clarified the position that the exemption provisions are to be strictly adhered to whereas the decision of the Hon’ble Supreme Court in the case of G. M. Knitting Industries Pvt. Ltd. (supra) is relating to deduction provisions u/s. VA of the Act the relevant para 11 of the order of the Hon’ble Supreme Court in the case of M/s. Wipro Ltd. (supra) is reproduced below:
“11. Now so far as the reliance placed upon the decision of this court in the case of G. M. Knitting Industries Put. Ltd. (supra), relied upon by the learned counsel appearing on behalf of the assessee is concerned, section 10B(8) is an exemption provision which cannot be compared with claiming an additional depreciation under section 32(1)(ii-a) of the Act. As per the settled position of law, an assessee claiming exemption has to strictly and literally comply with the exemption provisions. Therefore, the said decision shall not be applicable to the facts of the case on hand, while considering the exemption provisions. Even otherwise, Chapter III and Chapter VIA of the Act operate in different realms and principles of Chapter III, which deals with “income which do not form a part of total income”, cannot be equated with mechanism provided for deductions in Chapter VIA, which deals with “deductions to be made in computing total income”. Therefore, none of the decisions which are relied upon on behalf of the assessee on interpretation of Chapter VIA shall be applicable while considering the claim under section 10B(8) of the I. T. Act.”
In view of this, the issue is squarely covered in favour of the assessee by the decision of the Hon’ble Supreme Court in the case of G. M. Knitting Industries Pvt. Ltd. (supra) the impugned order of the Ld. CIT(A) is, therefore, set aside and the AO is directed to grant deduction to the assessee u/s. 80JJAA of the Act as claimed. The appeal of the assessee stands allowed.
5. In the result, the appeal of the assessee stands allowed.
Order is pronounced in the open court on 03.10.2024
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