EY GLOBAL DELIVERY SERVICES INDIA LLP,BENGALURU V. ACIT, CIRCLE-4(1)(1), BANGALORE

ITA 2386/BANG/2024

AI Insights

The case involves EY Global Delivery Services India LLP, which appealed against the decision of the CIT(Appeals) at the National Faceless Appeal Centre, Delhi, which had denied them a deduction under section 10AA of the Income Tax Act. The deduction was related to their SEZ unit for the assessment year 2022-23. The primary contention was whether the assessee had filed the necessary Form 56F within the stipulated time frame. The Tribunal examined the timelines of the filing of the original and revised returns and the Form 56F to determine the eligibility for the deduction under section 10AA.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474057 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2022-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S KEERTI NARAYAN; CHAVALI NARAYAN
• Keywords: Revised return
• Section: 139(1); 10AA

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH : BANGALORE BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.2386/Bang/2024 Assessment year : 2022-23 EY Global Delivery Services India LLP, RMZ Infinity, Tower C, 3rd Floor, Old Madras Road, K.R. Puram, Bangalore – 560 016. PAN: AAGFE 8006N Vs. The Assistant Commissioner of Income Tax, Circle 4(1)(1), Bangalore. APPELLANT RESPONDENT Appellant by : S/Shri Keerti Narayan & Chavali Narayan, CAs Respondent by : Smt. Nandini Das, CIT(DR)(ITAT), Bengaluru. Date of hearing : 06.03.2025 Date of Pronouncement : 17.03.2025 O R D E R Per Prakash Chand Yadav, Judicial Member The present appeal of the assessee is arising out of the order of the ld. CIT(Appeals), National Faceless Appeal Centre, Delhi (NFAC) dated 08.11.2024 and relates to assessment year 2022-23. 2. The brief facts of the case as coming out from the orders of the authorities below are that the assessee is a LLP having its registered office at Bangalore and engaged in the business of providing back ITA No.2386/Bang/2024 Page 2 of 4 office support services in the nature of Information Technology enabled Services (IteS). For the impugned assessment year it has filed return of income on 28.11.2022 along with audit report in Form 56F in respect of eligible SEZ unit computing the deduction allowable u/s. 10AA of the Act. The return of income filed by the assessee was processed by CPC, Bangalore on 14.12.2022 wherein certain adjustments were made while processing the return. Thereafter, the assessee filed a revised return on 22.12.2022. It is pertinent to note here that there is no additional impact on the taxable income and tax liability, after the filing of revised return, when compared to original return of income dated 28.11.2022. The revised return filed by the assessee has been processed by the CPC on 22.12.2022 disallowing the claim of deduction u/s. 10AA on the ground that return of income filed by the assessee has been furnished beyond the due date u/s. 139(1). Aggrieved with the order of CPC, the assessee filed appeal before the ld. CIT(Appeals). However, the ld. CIT(Appeals) could not find force in the argument of the assessee and held that assessee is not entitled for deduction u/s. 10AA of the Act. 3. Aggrieved with the order of the ld. CIT(Appeals), the assessee has come up in appeal before us. 4. The ld. counsel for the assessee invited attention of the Bench to page …….. of appeal set which is intimation issued by the CPC to contend that the due date for filing return of income was 30.11.2022 and the assessee has furnished original return of income u/s. 139(1) on ITA No.2386/Bang/2024 Page 3 of 4 28.11.2022. The ld. counsel also pointed out that Form 56F has been uploaded at the e-filing portal of the department on 28.10.2022 and hence From 56F was duly submitted before one month of due date of filing of return of income u/s 139(1) of the Act. The ld. counsel drawn attention of the Bench towards page 12 of the ld. CIT(A)’s order and contended that the findings of ld. CIT(Appeals) are factually incorrect. 5. The ld. DR relied on the orders of authorities below. 6. We have heard the rival submissions and perused the material available on record. Certain dates which go to the root of the matter are as under:- Date Event Observation 30.11.2022 Due date for filing of return of income for the impugned year Reference can be made to page 9 of CIT(A)’s order. 28.10.2022 Assessee filed Form 56F at the e-portal of the department Page 193 of appeal set. 28.11.2022 Assessee filed return of income. Return processed by CPC on 14.12.2022. 22.12.2022 Assessee filed revised return. No impact on taxable income. 7. Perusal of the above sequence of events would prove beyond doubt that assessee has filed the requisite Form 56F before one month of the due date for filing return of income and hence, in our view, assessee is entitled for deduction u/s. 10AA. So far as the observation of the CPC that assessee has revised its return of income at a later point of time has nothing to do with the deduction u/s. 10AA inasmuch as it is evident from record that assessee has not altered the figures of claim of deduction u/s. 10AA as per original return in the revised return of ITA No.2386/Bang/2024 Page 4 of 4 income. Therefore, we are of the considered opinion that assessee is entitled to deduction u/s. 10AA of the Act. In view of the above, the appeal of the assessee is allowed. Pronounced in the open court on this 17th day of March, 2025. Sd/- Sd/- ( WASEEM AHMED ) ( PRAKASH CHAND YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore, Dated, the 17th March, 2025. /Desai S Murthy / Copy to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "