ITAT Allows Section 80JJAA Deduction Despite Belated Form 10DA Filing:

The assessee is a partnership firm engaged in the manufacture and sale of helmets, pannier boxes, crash guards and other automobile accessories, filed its return of income for AY 2024-25 declaring income of Rs. 13.16 crore. While processing the return, the CPC disallowed a deduction of Rs. 16,19,138 claimed under Section 80JJAA of the Income Tax Act on the ground that Form 10DA had not been furnished within the prescribed time.

The assessee argued that the audit report in Form 10DA had been obtained before the due date for filing the return under Section 139(1). The Chartered Accountant’s staff had also completed the initial step on the Income Tax portal and uploaded a scanned copy of the duly signed Form 10DA on September 30, 2024. However, due to an inadvertent procedural lapse, the remaining steps for filing the form were not completed.

The mistake was noticed on December 16, 2024, following which the remaining procedure was completed and Form 10DA was finally uploaded and e-verified on December 18, 2024. The assessee submitted that the form was therefore available before the processing of the return under Section 143(1) and that the delay was merely procedural. The CIT(A), however, upheld the disallowance. The Tribunal observed that the prescribed Form 10DA had been furnished before the processing of the return and that no prejudice was caused to the Revenue by the delay.

It held that the requirement relating to filing of Form 10DA is directory in nature and that the audit report is essentially a procedural requirement for enabling the assessee to claim the deduction under Section 80JJAA. The Tribunal held that the lower authorities had wrongly rejected the assessee’s claim merely because Form 10DA was filed belatedly. The Tribunal observed that filing Form 10DA is directory in nature and that deduction under Section 80JJAA cannot be denied solely on account of delayed filing of the prescribed form.

Accordingly, the Tribunal allowed the assessee’s appeal and directed the AO to allow the disputed deduction of Rs. 16,19,138 under Section 80JJAA in accordance with law.