DCIT Vs MD Equipment Pvt. Ltd. (ITAT Delhi)
ITAT Delhi: Section 10AA Deduction Allowed Despite Late Return Where Form 56F Filed Within Extended Time (AY 2023-24)
The Delhi Bench of the Income Tax Appellate Tribunal held that deduction under Section 10AA cannot be denied merely because the return was filed under Section 139(4) or because CPC treated Form 56F as belated, when the form was in fact filed within the extended time granted by the CBDT. In this case, the assessee had filed Form 56F on 27.11.2023, well within the extended deadline of 31.12.2023 provided by CBDT Circular No. 18/2023 due to technical issues on the portal. The Tribunal observed that CPC erred in ignoring the CBDT extension and wrongly disallowed the deduction while processing the return under Section 143(1).
The Tribunal further held that the proviso to Section 10AA mandating filing of return within the due date under Section 139(1) was inserted only with effect from 01.04.2024 and is applicable from Assessment Year 2024-25 onwards. Applying this condition retrospectively to Assessment Year 2023-24 was held to be impermissible in law. The Tribunal relied on coordinate bench decisions, including Arvind Kumar Agarwal v. ITO and Pr. CIT, which consistently held that for years prior to the amendment, Section 10AA deduction cannot be denied solely on the ground of belated filing of return.
It was also noted that the Assessing Officer, while giving appeal effect pursuant to the CIT(A)’s order, had verified and accepted that Form 56F was filed within the extended time and that the assessee satisfied all conditions of Section 10AA. In view of these facts and settled legal position, the Tribunal upheld the order of the CIT(A) and dismissed the Revenue’s appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
