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of <h1>SEZ export unit's s.10AA deduction claim amid Form 56F timing and return filed u/s139(4); denial overturned</h1> The dominant issue was whether deduction under s. 10AA could be denied for alleged late filing of Form 56F and filing of return under s. 139(4). The ... Disallowance of deduction u/s 10AA - assessee failed to submit the relevant form-56F within time of filing return of income - as per revenue to claim deduction u/s 10AA it is mandatory to file Form- 56F on or before 31.12.2023, failing which, deduction will not be allowed - HELD THAT:- We observed that the assessee has filed its return of income u/s 139(4) of the Act and filed the Form 56F on 27.11.2023 within the extended period of time by the CBDT. The CPC while processing the return of income treated the Form 56F filed belatedly and accordingly denied the benefit claimed by the assessee u/s 10AA of the Act. The CPC wrongly treated the filing of Form56F beyond time whereas the CBDT has extended the filing of form upto 31.12.2023. The above facts were rightly and properly appreciated by the ld. CIT (A) and allowed the claim of the assessee. As decided in Arvind Kumar Agarwal [2023 (4) TMI 1170 - ITAT DELHI] for the year under consideration i.e. assessment year 2018-19 there is no mandatory requirement of filing the return of income within the due date specified u/s 139(1) of the Act for availing exemption under section 10AA - Decided in favour of assessee. Issues: Whether the claim of deduction under Section 10AA of the Income-tax Act, 1961 for AY 2023-24 was correctly disallowed by the processing centre under Section 143(1)(v) for alleged non-filing of Form-56F within time, and whether the proviso inserted by Finance Act, 2023 (effective 01.04.2024) could be applied to deny the deduction for AY 2023-24.Analysis: The facts show Form-56F was filed on 27.11.2023 and the CBDT had extended the time for filing Form-56F to 31.12.2023 by circular; the CPC treated the Form-56F as filed beyond time due to processing/software error. The issue of applicability of the proviso (inserted by Finance Act, 2023 effective 01.04.2024) to AY 2023-24 was considered; the amendment took effect from 01.04.2024 and cannot be applied retrospectively to deny deduction for AY 2023-24. The Assessing Officer subsequently verified fulfillment of conditions under Section 10AA and granted relief. Precedent of the coordinate Bench holding that the proviso effective 01.04.2024 is not applicable to earlier assessment years was followed.Conclusion: The disallowance by CPC under Section 143(1)(v) on grounds of non-filing of Form-56F was not sustained because Form-56F was filed within the extended period granted by CBDT and the proviso inserted by Finance Act, 2023 (effective 01.04.2024) is not applicable to AY 2023-24; the revenue's appeal is dismissed and the deduction under Section 10AA is upheld in favour of the assessee.
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