2024 (10) TMI 363 - AT - Income Tax

Deduction u/s 80JJAA - late filing of audit report in Form 10DA - HELD THAT - 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 2015 (11) TMI 397 - SC ORDER 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. Decided in favour of assessee.

Summary

Issues: Late filing of audit report affecting deduction under section 80JJAA of the Income-tax Act, 1961.

Analysis:

The appeal was filed against the order of the Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT(A)-5, Mumbai, regarding the disentitlement of the assessee from claiming deduction u/s. 80JJAA due to the late filing of audit report in Form 10DA. The Form 10DA was filed after the due date but was available to the Assessing Officer (AO) during assessment proceedings. The main issue was whether the late filing would impact the assessee's eligibility for the deduction.

The decision of the Hon'ble Supreme Court in the case of CIT, Maharashtra Vs. G. M. Knitting Industries Pvt. Ltd. was cited, emphasizing that even if the necessary certificate was not filed with the return of income but was submitted before the final assessment order, the assessee could still claim the deduction. This precedent supported the assessee's position that the availability of Form 10DA during assessment proceedings should allow for the deduction u/s. 80JJAA.

Regarding the argument based on another Supreme Court decision in the case of Pr. CIT-III, Bangalore Vs. M/s. Wipro Ltd., it was noted that the exemption provisions under section 10B, as discussed in the Wipro case, were distinct from the deduction provisions under Chapter VIA, which included section 80JJAA. The court clarified that exemption provisions required strict compliance, unlike deduction provisions. Therefore, the Wipro case was not directly applicable to the present scenario, and the decision in the G. M. Knitting Industries case was more relevant.

Ultimately, the Tribunal ruled in favor of the assessee, citing the G. M. Knitting Industries case as a precedent. The Ld. CIT(A)'s order was set aside, and the AO was directed to grant the deduction u/s. 80JJAA as claimed by the assessee. Consequently, the appeal of the assessee was allowed, and the order was pronounced in open court on 03.10.2024.