TaxTMI 
TaxTMI 
2026 (1) TMI 1648
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....ppeal before Honorable ITAT 1. On the facts and circumstances of the case and in law the Learned J-CIT(A) has erred in passing the order u/s 250 of the Act and upholding the addition of Rs. 4,58,090/- for the reason that the report in form No. 10DA was not filed within the time prescribed. 2. On the facts and circumstances of the case and in law the Ld. J-CIT (A) has failed to appreciate that the assessee complied with all requisite for claiming exemption u/s 80JJAA of the Act and also erred in not considering that the non-filing of any required form/certificate within the time is a technical and procedural defect and the assessee was to be allowed the deduction according to following judicial pronouncement a. [20....
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....selfassessment tax. 4. The return of income was processed by the CPC under section 143(1) of the Act on 31.07.2024. While processing the return, the Assessing Officer disallowed the deduction claimed under section 80JJAA of the Act on the ground that the assessee had not furnished the prescribed audit report in Form No. 10DA within the due date prescribed under the Act and the Rules. As a result, an addition of Rs.4,58,090/- was made and the total income was determined at Rs.51,07,900/-. 5. Aggrieved by the intimation dated 31.07.2024 passed under section 143(1), the assessee preferred an appeal before the learned CIT(Appeals). Before the CIT(Appeals), the assessee submitted that he had complied with all substantive conditions prescri....
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....itted that for the year under consideration also, there is no dispute regarding the eligibility of the assessee or the computation of additional employee cost and that all substantive conditions of section 80JJAA stand fully satisfied. It was further submitted that Form No. 10DA was filed on 05.10.2023 and revised on 21.10.2023 only to correct a technical error, and that the return of income was filed on 18.10.2023. Thus, Form No. 10DA was very much available on the income-tax portal before the return was processed under section 143(1) of the Act on 31.07.2024. The learned Counsel contended that the delay, if any, in filing Form No. 10DA is purely technical and procedural and cannot override the substantive right of the assessee to claim de....
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....iled by the assessee on 05.10.2023 and thereafter revised on 21.10.2023 to rectify a technical error, while the return of income itself was filed on 18.10.2023. The return of income was processed under section 143(1) of the Act on 31.07.2024. Thus, Form No. 10DA was very much available on record much prior to the processing of the return under section 143(1) of the Act. The disallowance has been made solely on the ground that the said form was not filed within the time prescribed under the Rules, without disputing the fulfillment of substantive conditions of section 80JJAA. The Hon'ble Madhya Pradesh High Court in the case of CIT v. Devradhan Madhavlal Genda Trust [1998] 230 ITR 714 (MP) has clearly held that filing of an audit report is a ....
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.... Association of Indian Panelboard Manufacturers v. DCIT [2023] 157 taxmann.com 550 (Guj.), wherein it has been held that while obtaining an audit report may be a substantive requirement, the time and manner of furnishing the same is purely procedural and what is relevant is the availability of the audit report at the time of assessment proceedings. 12. The Hon'ble Gujarat High Court in Parul Mahila Pragati Mandal v. Income-tax Officer (Exemption) [2025] 175 taxmann.com 922 (Gujarat), order dated 30.04.2025, has also reiterated that filing of audit report is a procedural requirement and even if such report is filed at a later stage, the assessee cannot be denied the benefit otherwise available under law. Consistent view has also been take....