2022 (3) TMI 1117 - AT - Income Tax

Disallowance of deduction claimed u/s 80JJA on account of late filing of Form 10DA - revised Form 10DA was notified and made available on e-filing portal of Income Tax Department after due date for filing income tax return - HELD THAT - In this case, the disallowance of deduction has been made because of the technical reason of non-furnishing of Form 10DA along with return of income. Assessee has duly explained that it was not due to any fault on the part of the assessee, rather, the same was due to technical glitches and non-availability of the revised Form 10DA by the Income Tax Department as the same was notified after the date of filing of return by the assessee. The assessee subsequently uploaded Form 10DA when it became available and cured the defect. In view of the aforesaid explanation, in our view, the action of the lower authorities in denying deduction to the assessee on the technical reason, compliance of which was not possible at the time of filing of the return, as explained above, cannot be held to be justified. The impugned order of the CIT(A) is set aside and it is directed to allow the claim of deduct ion u/s 80 JJA to the assessee. Appeal of assessee allowed.

Summary

Issues: Disallowance of deduction claimed under section 80JJA due to late filing of Form 10DA.

The sole issue in this case pertains to the disallowance of deduction claimed by the assessee under section 80JJA of the Income Tax Act, 1961, based on the late filing of Form No. 10DA. The assessee's claim for deduction was denied as the required report in Form No. 10DA was not furnished along with the income tax return. The counsel for the assessee argued that there was an amendment in the Income Tax Act, and the revised Form 10DA, which was necessary for filing, was not notified at the time of filing the return. The revised form was only made available after the due date, and technical issues prevented online uploading until a later date. The non-filing of Form No. 10DA along with the return was beyond the control of the assessee.

The Departmental Representative contended that the assessee could have uploaded the old form 10DA along with the return, but the counsel for the assessee clarified that the old form was not applicable to the case as certain information required by the revised form was unavailable. The assessee genuinely believed that only the new or amended form had to be uploaded. The Tribunal considered the explanations provided and found that the disallowance was due to technical reasons and the non-availability of the revised form at the time of filing. The assessee rectified the issue by uploading the form when it became available. Consequently, the Tribunal held that denying the deduction based on a technicality that was not possible to comply with at the time of filing was unjustified.

Therefore, the Tribunal set aside the order of the Commissioner of Income Tax (Appeals) and directed the allowance of the deduction under section 80JJA to the assessee. As a result, the appeal of the assessee was allowed, and the order was pronounced on 26.11.2021.