AI Drafter 
TaxTMI 
TaxTMI 
2026 (1) TMI 302
X X X X Extracts X X X X
X X X X Extracts X X X X
....d. CIT (A) has erred in directing the A.O. to verify the conditions stipulated in Section 10AA of the Act to decide its allowability for the assessment year under consideration, instead of considering the provisions of section 143(1)(v) of the Act which specifically disallow the deduction claimed under section 10AA of the Act." 2. Brief fact of the case are, the assessee filed its return of income online vide receipt acknowledgement number 546633151091223 on 09.12.2023 declaring an income of Rs. 47,43,570/- under the normal provisions of tax and of Rs. 3,23,12,654/- as book profit under section 115JB of the Income-tax Act, 1961 (for short 'the Act') after filing prescribed Form- 56F on 27.11.2023 (prescribed Form for claiming deduction u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f intimation under section 143(1) dated 28.05.2024 wherein the claim of deduction of Rs. 2,99,49,960/- under section 10AA has been disallowed by the CPC wherein in the intimation it is stated at page no.-5 (English Version) that: "Deduction under section 10AA is claimed but Form-56F is not filed. To claim deduction u/s 10AA. it is mandatory to file Form- 56F on or before 31.12.2023,jailing which, deduction will not be allowed. If the Form-56F is filed before the due date, deduction claimed in the return will be allowed to the extent computed in the Form-56F (i.e. lessor of the claim in ITR and the sum of all Forms filed before the due date)." 5. He further submitted that the assessee is eligible for claiming deduction u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tted that a copy of issue letter dated 21.05.2025 issued by assessing officer to ensure that the conditions prescribed under section 10AA placed at page no. 23 of the paper book. He further submitted that the Assessing Officer has granted the Appeal Effect vide his order dated 16.07.2025 after verification of the fulfillment of the conditions by the company for availing deduction under section 10AA and held in para 4 of its order that the reply of the assessee has been considered and found in order. 7. He further brought to our notice para 4.2 at page 5 of the Appeal Effect order wherein the Assessing Officer has stated that the Form-56F had been filed by the company on 27.11.2023 which was within the extended time granted by the CBDT. H....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ling the return of income within the time prescribed under section 139(1) could not be made applicable to the Assessment Year 2018-19 and held as under :- "14. The Hon'ble High Court of Delhi has applied this doctrine of interpretation of Scott R. Bayman v. Commissioner of Income-tax, Delhi [20l2} 24 taxmann.com 214 (Delhi) and referred to the abovementioned judgment of the Hon'ble Apex Court. When the Legislature has omitted such a restriction in section 10AA of the IT Act in its wisdom, it is not for the A.O. nor the CIT(A) to prescribe such a conditionality and impose it on an assessee. Therefore, the denial of the exemption on the ground of not filing the return of income within the specified due date u/s 139(1) the IT ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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. We also find that the coordinate Bench in the case of Arvind Kumar Agarwal vs. ITO (supra) held as under :- "In the Finance Bill, 2023, the Legislature has proposed inserting proviso to sub section (1) of section 10M of the Act stating no deduction under section 10AA shall be allowed to the assessee who does not furnish return of income on or before the due date specified under sub section (1) of section 139 of the Act. Accordingly, a proviso was inserted after clause (ii) of sub section (1) of section 10AA by the Finance Act, 2023 with effect from 1.04.2024 inserting a co....