TaxTMI 
TaxTMI 
2026 (2) TMI 1136
X X X X Extracts X X X X
X X X X Extracts X X X X
....lowing grounds of appeal: "1. That on the facts and in the circumstances of the petitioner's case, the learned First Appellate Authority erred in law and on facts in upholding the action of the learned assessing officer in disallowing deduction claimed under section 80JJAA of the Income tax Act, 1961 amounted to Rs. 8678703, though restricted to Rs. 6492387 as per law, allegedly on the ground that the petitioner had filed his Return of Income beyond the due date of Income under section 139(1) of the Income tax Act 1961. 2. That on the facts and in the circumstances of the petitioner's case, the learned First Appellate Authority erred in law and on facts in upholding the action of the learned assessing officer in ig....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and the deduction under section 80JJAA of the Act is duly allowable in New Tax Regime as well. " 3. Brief facts of the case are that the assessee is engaged in the business of providing industrial manpower to his clients and had filed its return for A.Y. 2024-25 on 07.11.2024. Subsequently, the assessee revised its return on 15.01.2025, declaring income of Rs. 25,41,180/-, wherein deduction u/s 80JJAA of Rs. 64,92,387/- was claimed. The return was processed u/s 143(1) by the CPC wherein the claim of deduction u/s 80JJAA was disallowed on the ground that the mandatory audit report in Form 10DA was not filed along with the original return. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). Ld. CIT(A) noted that the Form 10D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld have been allowed as the mandatory audit report had been filed well before the return was processed u/s 143(1) of the Act. 4.1 Reliance has been placed by Ld. AR on various judicial pronouncements on the issues. Some of these are discussed below: (i) Commissioner of Income-tax, Maharashtra vs. G. M. Knitting Industries(P.) Ltd.[2016] 71 taxmann.com 35 (SC) wherein Hon'ble Apex Court held in the context of claim of deduction u/s 80IB that even if the mandatory form (Form 3AA) was not filed along with the return on income and same was filed during the assessment proceedings and before the final order of the assessment was made, that would amount to sufficient compliance of the requirements. (ii) Following this decisio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ities and has pointed out that since the mandatory condition of filing the audit report in Form 10DA by the due date of filing of return u/s 139(1) was not fulfilled, the deduction u/s 80JJAA has rightly been disallowed by the lower authorities. 5. We have heard the rival submissions and perused the material available on record. We note that the issue regarding filing of mandatory audit report for claiming deduction has been decided in favour of the assessee by the Hon'ble Apex Court as well as several High Courts and co-ordinate Benches of the ITAT as discussed above. 5.1. Following the settled legal position on the issue, we are of the considered view that since the return was filed within the extended due date and the same was also....