TMI Blog2022 (12) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... because such issue is highly debatable which can be resolved by deliberation, including verification of necessary documents. We are of the considered view that the AO has erred in disallowing deduction claimed u/s. 80JJAA of the Act, while processing return of income u/s. 143(1)(a) of the Act, and thus, we direct the AO to delete the additions made towards disallowance u/s. 80JJAA of the Act. Appeal filed by the assessee is allowed. - ITA No.: 666/Chny/2022 - - - Dated:- 7-12-2022 - Shri V. Durga Rao, Judicial Member And Shri G. Manjunatha, Accountant Member For the Appellant : Shri. A. Mahesh, CA For the Respondent : Shri. D. Hema Bhupal, JCIT ORDER PER G. MANJUNATHA, ACCOUNTANT MEMBER: This appeal filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore liable to be deleted. 3.1 The CIT(A) omitted to consider that both the reasons of CPC for denying deduction u/s 80JJAA, viz., that the audit report in Form 10DA was not filed. OR audit report in 3CB is NOT filed, are erroneous as this is the 2nd year of claiming the said deduction, which was claimed and allowed in 2017-18 a/y, in which year the audit report in 10DA was filed AND as 3CB for 2018-19 a/y (which is irrelevant to allowance ofdeduction u/s 80JJAA), was also filed. 3.2 The CIT(A) failed to appreciate that the deduction u/s 80JJAA is computed for 1 year on the basis of satisfaction of the conditions specified in sec.80JJAA in that year and the conditions are NOT APPLICABLE for the following 2 years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3rd years of claiming deduction u/s 80JJAA that this requirement in Form 10DA was introduced only by a NEW form on 18.12.2019. 5. In any view of the matter, the CIT(A) ought to have deleted the adjustment u/s 143(1) by CPC as was done by the Honourable Tribunal in the Appellant's own case for the subsequent 2018-19 a/y in ITA No.505/CHNY/2021 dated. 13.7.2022. 6. As a corollary, the levy of tax, cess etc. on account of the aforesaid 'adjustments' u/s 143(1)(a) is bad in Law. 7. Appellant denies its liability to the levy of interest of Rs.420332 uls 234B. 8. The interest levied u/s 234C requires re-computation consequent to the above. On these grounds and on such other grounds as may be put forth at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, at the time of hearing submitted that this issue is covered in favour of the assessee by the decision of ITAT, Chennai Benches in assessee s own case for assessment year 2019-20, where an identical issue has been considered and allowed in favour of the assessee. 5. The Ld. DR, on the other had supporting the order of the Ld. CIT(A) submitted that the AO has rightly disallowed deduction claimed u/s. 80JJAA of the Act, for non-furnishing of audit report in Form 10DA. 6. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. We find that an identical issue had been considered by the Tribunal in assessee s own case for assessment year 2019- 20 in ITA No. 505/Chny/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer towards deduction in respect of employment of new employees as per provisions of section 80JJAA of the Act, we find that the issue is highly debatable which can be resolved by deliberation, including verification of necessary documents and thus, we are of the considered view that the Assessing Officer cannot make adjustments towards deduction u/s.80JJAA of the Act, while processing return u/s.143(1) of the Income Tax Act, 1961. Therefore, we direct the Assessing Officer to delete additions made towards disallowance of deduction claimed u/s.80JJAA of the Income Tax Act, 1961. 7. In view of this matter and consistent with the view taken by the co-ordinate bench in assessee s own case in ITA No. 505/Chny/2021, dated 13.07.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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