TMI Blog2023 (10) TMI 1315X X X X Extracts X X X X X X X X Extracts X X X X ..... rix before the Assessing Officer and take all pleas for evaluation and determination of the issue by the Assessing Officer. The Assessing Officer shall examine this alternative aspect and pass a fresh order in accordance with law after giving proper opportunity to the assessee of being heard. Denial of deduction u/s 80JJA - claim disallowed as prescribed Form 10DA for the purposes of deduction under Section 80JJA has not accompanied the return of income - Assessee submitted claim of deduction was duly made in the original return of income but however same was not reported in the Tax Audit Report and on realizing mistake, the Tax Audit Report was revised and also Form 10DA required for claiming such deduction was also filed albeit after the filing of original return of income but before the date of intimation - HELD THAT:- We find that the Bangalore Bench in Jeans Knit [ 2022 (3) TMI 244 - ITAT BANGALORE ] has taken a view that filing of such prescribed form is directory requirement and hence would stand satisfied if the Accountant s report is furnished during the course of assessment. In consonance with the view taken by the Co-ordinate Bench, the denial of deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the employee s contribution to PF/ESIC has been timely deposited qua the due date of payment of salary under the respective statute. The ld. counsel pointed out that the Co-ordinate Bench of Tribunal in Kanoi Papers Industries Ltd. vs. CIT 75 TTJ 448 (Cal) has examined the concept of due date implied in Section 36(1)(va) of the Income Tax Act as well as the respective Acts and observed that the due date should be reckoned from the end of the month during which the disbursement of salary was actually made for the purposes of determination of due date under the respective Acts for deposit of contribution to the PF/ESIC etc. The ld. counsel thus submitted that mere approval of liability towards payment of salary without actual disbursement would not fastened obligation for deposits of employees contribution under the Labour Act per se as observed by the Co-ordinate Bench in Kanoi Papers (supra). The ld. counsel fairly submitted that this aspect has not been examined by the Revenue Authorities and therefore, this aspect needs to be examined for the purposes of determination of default in timely depositing contribution qua the due date as understood in Kanoi Papers case. 4. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(1) of the Income Tax Act, 1961 (the Act) concerning AY 2018-19. 12. As per the grounds of appeal, the assessee has challenged; (i) disallowance of deduction of Rs. 50,28,534/- under Section 80JJA of the Act while drawing intimation under Section 143(1) of the Act. (ii) disallowance of expenditure of Rs. 98,90,814/- by invoking provision of Section 2(24)(x) r.w. Section 36(1)(va) of the Act. 12.1 The first issue concerns denial of deduction under Section 80JJA on the ground that the prescribed Form 10DA for the purposes of deduction under Section 80JJA has not accompanied the return of income. 13. The ld. counsel for the assessee submits at the outset that while the deduction under Section 80JJA is contingent upon furnishing of Form 10DA, the requirement of furnishing such form 10DA is directory in nature and therefore, merely because Form 10DA was filed on 28.09.2019, i.e., belatedly after the filing of return of income on 24.09.2018, this by itself cannot be the ground for denial of deduction entitled to the assessee. For this proposition, the ld. counsel referred to the decision rendered by the Co-ordinate Bench in the case of Jeans Knit (P.) Ltd. vs. DCIT, [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch in Jeans Knit (supra) has taken a view that filing of such prescribed form is directory requirement and hence would stand satisfied if the Accountant s report is furnished during the course of assessment. 18. In consonance with the view taken by the Co-ordinate Bench, the denial of deduction under Section 80JJA solely for reasons of belated filing of the prescribed form is not justified. Consequently, the action of the CIT(A) is set aside and the Assessing Officer is directed to grant relief by way of deduction as claimed. Ground No.1 is accordingly allowed. 19. As regards, the second issue towards allowability of deduction under Section 36(1)(va), we restore the issue back to the file of the Assessing Officer for fresh determination in accordance with law on the similar lines as noted in ITA No.2864/Del/2022 (supra). 20. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No.2863/Del/2022 Assessment Year 2018-19 21. The captioned appeal has been filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi ( CIT(A) in short) dated 09.11.2022 arising from the intimation order dated 18.04.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n on merits. The Revenue thus contends that the claim of the assessee is also required to be negated even on merits. In counter, the assessee in its written submission elaborates its case for eligibility of deduction on merits and contends that the requirement of Section 80JJAA has been duly fulfilled. 26. In the absence of any observation of the CIT(A) on merits and in the absence of complete facts, we are not in a position to express our opinion on merits of the eligibility of deduction under Section 80JJAA of the Act. On consideration of the counter submissions of the Revenue and assessee on the eligibility of deduction on merits, we consider it expedient to restore the matter back to the file of the CIT(A). It shall be open to the assessee to demonstrate that the criteria for eligibility of deduction under Section 80JJAA has been duly met for the purpose of such claim. The CIT(A) shall adjudicate the issue of eligibility of deduction under 80JJAA on merits after giving proper opportunity to the assessee to demonstrate its case. In the light of the observations recorded above, the issue is thus set aside and restored to the file of the Assessing Officer for denovo adjudicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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