TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1212
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....med u/s. 10AA of the Act by incorrectly placing emphasis on the amended provisions of Sec. 10AA, which are applicable from 01.04.2024 i.e, A.Y. 2024-25 and not to the current assessment year i.e, 2023-24. 3. The Ld. Commissioner (Appeals)/NFAC erred in not appreciating the fact that amendment to Sec. 10AA of the Act, imposing a condition that return of income needs to be filed within the time limit prescribed u/s. 139(1) of the Act for claiming deduction u/s. 10AA of the Act was introduced vide Finance Act, 2023, which is applicable from A.Y. 2024-25 and not applicable to A.Y. 2023-24. Therefore, reliance placed on the amended provisions of Section 10AA of the Act by the Commissioner (Appeals), which are not applicable to the present assessment year is bad in law and clearly shows non application of mind. 4. The Ld. Commissioner (Appeals)/NFAC ought to have considered and appreciated the written submissions placed on the record by the Appellant along with supporting material rather than disposing the Appeal mechanically overlooking the submissions placed on record. In fact there is no whisper about the contentions of the Appellant in the order passed u/s. 250 of t....
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....nd material were available before the CPC as well as learned CIT(A) to confirm the disallowance by learned CIT(A) is not justified. The learned Authorised Representative of the Assessee has further submitted that the Amendment in Sec. 10AA is not applicable by the Finance Act, 2023 and is applicable w.e.f. 01.04.2024 and, therefore, the same is not applicable for the assessment year 2023-2024 under consideration. In support of his contention, he has relied upon the decision of ITAT, Delhi Bench in the case of Arvind Kumar Agarwal vs. ITO [2023] 149 taxmann.com 472 (Delhi-Trib.). Hence, the learned Authorised Representative of the Assessee has submitted that the disallowance made by the CPC and confirmed by the learned CIT(A) is highly unjustified and, therefore, the same is liable to be deleted and the claim of the assessee be allowed. 4. On the other hand, the learned DR relied upon the Orders of the authorities below and submitted that the learned CIT(A) has discussed this issue in detail. 5. We have considered the rival submissions as well as the relevant material on record. The CPC has disallowed the claim of deduction u/sec. 10AA by giving reasons at page- 13 as under: ....
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....3. All these reasons given by the learned CIT(A) is based on the wrong presumption of the due date of filing the return as 31.10.2023 as against the due date extended up-to 31.12.2023. Accordingly, the impugned order of the learned CIT(A) as well as the disallowance made by the CPC is not sustainable and the same are set-aside. The claim of the assessee for deduction u/sec.10AA is allowed. Though the issue of applicability of the Amendment brought into sec. 10AA vide Finance Act, 2023 is not involved in the present appeal, however, for the sake of completeness, we note that this Amendment is applicable w.e.f. 01.04.2024 and hence, the same is not applicable for the assessment year under consideration. The Delhi Bench of the Tribunal in the case of Arvind Kumar Agarwal vs. ITO (supra) has considered this issue and held in Paras-8 to 11 as under : "8. On perusal of the CIT(A)'s finding extracted (supra), it is not forthcoming precisely why the denial of the deduction u/s. 10AA of the I.T. Act is upheld. The CIT(A) has upheld the disallowance referring to sub-sections (5) & (6) of section 10A/10B of the I.T. Act, which are applicable to the deduction u/s. 10AA of the I.T.....
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....essment year itself and accordingly sub-section (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of sub-section (1) of section 36, as the case may be, shall not apply in relation to any such allowance or deduction; (ii) no loss referred to in sub-section (1) of section 72 or sub-section (1) or sub-section (3) of section 74, in so far as such loss relates to the business of the undertaking. shall be carried forward or set off where such loss relates to any of the relevant assessment years ending before the 1st day of April, 2001; (iii) no deduction shall be allowed under section 80HH or section 80HHA or section 80-1 or section 80- IA or section 80-IB in relation to the profits and gains of the undertaking; and (iv) in computing the depreciation allowance under section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment year." ....