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2023 (7) TMI 166 - AT - Income TaxDeduction u/s. 10AA - assessee failed in E-filing form 56F along with return of income - CIT(A) allowed deduction - HELD THAT:- Benefit of section 10AA should not be denied on account of a procedural/technical default by the assessee or his chartered accountant, if otherwise the assessee is eligible to claim deduction under the said exemption provision. In the instant case, the A.O. has denied sec 10AA benefit on account of an inadvertent error on the part of the assessee in not e-filing Form 56F along-with return of income. We are therefore of the view that there is sufficient compliance if the Form 56F has been filed during the course of assessment proceeding, since there is no material objective to be achieved by the assessee in not e-filing the same, once the same was already available with the assessee. CIT(A) has not erred in facts and in law in allowing the claim of the assessee that deduction u/s. 10AA of the Act cannot be denied simply on the ground that the assessee did not e-file form 56F along with the return of income, when the assessee furnished form 56F to the ld. Assessing Officer during the assessment proceedings when the claim of deduction u/s. 10AA of the Act was being examined by the ld. Assessing Officer. Net profit comparison of sister concern - AO held that the reasonable profit for the assessee should be restricted to 7.5% of the purpose of calculation of deduction u/s. 10AA - CIT(A) allowed the appeal of the assessee on the ground that there was no business transaction between the assessee and its sister concern - HELD THAT:- We observe that firstly the assessee’s case is directly covered by order of Hon’ble ITAT for assessee’s own for assessment year 2012-13 & 2013-14 [2019 (7) TMI 126 - ITAT AHMEDABAD]. CIT(A) has correctly observed that the assessee has not arranged its affairs in a manner so as to artificially inflate its profit with a view to claim higher deduction u/s. 10AA and further, the Department has not been able to place any material on record to show that there was any transaction between the assessee and its sister concern. We are of the considered view that ld. CIT(A) has correctly allowed the appeal of the assessee
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