Sai Computers Ltd., Meerut V. ITO, Circle-1(1)(1), Meerut

ITA 2863/DEL/2022

AI Insights

Sai Computers Ltd. appealed against the orders of the Commissioner of Income Tax (Appeals) - NFAC, Delhi, which arose from the intimations passed by the Assessing Officer under Section 143(1) and Section 143(3) of the Income Tax Act, 1961 for various assessment years. The primary contention in the appeals was the disallowance of deductions related to employees' contributions to PF/ESIC under Section 36(1)(va) read with Section 43B, and deductions under Section 80JJA. The Tribunal considered the principles laid down by the Supreme Court in Checkmate Pvt. Ltd. vs. CIT and other relevant cases, and found merit in the alternative plea regarding timely deposit of employees' contributions to PF/ESIC. The Tribunal restored the matters back to the Assessing Officer to ascertain the actual compliance with the due dates prescribed under the relevant legislations for the deductions claimed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121686 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: G
• Next Hearing Date: 09-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 06-12-2022
• Other Referred Cases: Checkmate Pvt. Ltd. vs. CIT, Kanoi Papers & Industries Ltd. vs. CIT, Jeans Knit (P.) Ltd. vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 201; 43; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.As. No.2862, 2863, 2864 & 2865/DEL/2022 Assessment Years 2018-19, 2018-19, 2019-20 & 2020-21 Sai Computers Ltd. Sai Dham, Victoria Park Meerut Vs. Assistant Director of Income Tax, CPC New Delhi TAN/PAN: AACCS2787D (Appellant) (Respondent) Appellant by: Ms. Monika Agarwal, Adv Respondent by: Shri Anuj Garg, Sr.DR Date of hearing: 10 10 2023 Date of pronouncement: 18 10 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: IT A N o . 286 4/ D e l / 2 0 2 2 A ss es s me n t Y ea r 2 0 19 -2 0 T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t h e l d. Co m m i s s i o n e r o f I nc o m e T a x (A p p e als) -N F A C, D el h i ( ‘ C IT (A ) ’ i n sh ort ) da t e d 0 4 . 11 . 2 0 2 2 a ri si ng fr o m t he i nt i m a t i o n o r de r s d a t e d 1 1. 0 5 . 2 0 2 0 p a sse d by t he A ss e s si ng O ff i c e r (A O ) un d er S e c t i o n 1 43 ( 1) o f th e I n c o m e T a x A c t , 196 1 (t h e A c t ) c on c e rn i n g A Y 201 9- 2 0. 2. A s pe r t h e g ro un d s o f a p p ea l , t he a ss e ss e e h a s cha l l e n ge d t he di s a l l o w a n c e o f e m p l o y e e s’ c o n t ri bu t io n t o P F / E S IC u nde r S e c t io n 36 ( 1) (v a ) r. w . S ec t i on 4 3 B o f t he A ct a mo un t i n g t o R s. 1, 1 8 , 73, 0 4 7/ - 3. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e a t t he o ut s e t p o i n t e d o u t t h a t t h e j ud g me nt re nd e re d b y t h e I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 2 H on’ bl e S u p re me Co ur t i n C he c k m a t e P v t . L td . v s. CI T (20 22) 14 3 t ax m a nn . c o m 1 7 8 ( S C ) i s o n t h e fi rs t pr i n c i p le s th at t i m e ly p ay me nt un d e r t h e r es pe ct i v e A ct s a pp l i e s t o t h e e mp l o ye e s’ co nt ri bu t i o n a n d t he st a t u t e ha s t re a t e d e mp l oy e e s a nd e mp l o y e rs c ont r i b ut io n di ff e r e nt l y a ft e r th e i ns e rt i o n o f S e ct i on 3 6 ( 1 )( v a) i n t he st a tu te . Th us, t he c r u x o f t he j u d g m e n t i n C he c k m a t e ( s up ra) i s t h a t e m pl o ye es ’ c on tr i b ut i o n st a n ds o n a d i f fe re nt f o o t in g t h a n e m pl o ye r’ s co nt ri b u ti o n. H ow e ve r, t h e a s se s se e i s ent i t l e d t o sh ow t ha t t h e e m pl o y e e ’ s co nt ri bu ti on t o P F / E S IC h as b e en t i me l y de p o s it e d q u a t he d u e d a t e o f p a y m e nt o f s a l a r y u n de r t he re s pe ct i ve st a t u t e . T h e l d . c o u n se l po i n t e d o u t t h at t h e C o- ord i na t e Be nc h o f Tr i bu n a l i n Ka no i P a pe r s & In d u st ri e s L t d . v s. CI T 7 5 T T J 44 8 (C al ) ha s e x a mi n ed t h e c o nc e p t o f d ue d a t e i mp l i e d i n S ect i o n 3 6 (1 ) ( v a ) o f t he I n c o me T a x A c t a s w e l l a s t h e re s pe c t i ve A c ts a n d ob s e r v e d t ha t t h e d ue d a t e sh o ul d be r ec ko ne d fr o m t h e e n d of t h e mo nt h du r i n g w h i ch t h e d i sb u r se me nt o f sa l a r y w a s a c tu a l ly m a de fo r t h e pu r po se s o f de t e r m in a t i on o f d ue d at e u nd e r t he re sp e c t i v e A c t s fo r de p o s it o f co nt ri b u ti on t o th e P F /E S IC e t c. T h e ld . c ou n se l t h u s su b mi t t e d t ha t m er e a p p r o va l o f l i a b i l i t y t o w a r ds pa y m e n t o f sa l ar y w it h o ut a ct u a l di s bu r se m e n t w o ul d no t f a ste n e d o bl iga t io n fo r de p o s it s o f e m p l o y e es ’ c o n t r i b u t i o n u n de r t h e La bo ur A c t pe r se a s ob s er ve d by t he Co -or di na t e B e n c h i n Ka no i P a pe rs ( su pr a ). Th e l d. c ou n s el f ai r l y s ub m i t te d th at t h i s a s pe c t ha s no t be e n ex a mi ne d b y t he R e v e n u e A u th ori t i es a n d t he re fo re , t hi s a sp e c t n e ed s t o be e xa mi ne d f or t h e pur po s e s o f d e t e r m i na t i o n o f de fa ul t i n t i me l y de p o s it i n g c o nt ri b u t i o n q u a t h e d u e da t e a s u n de r sto o d in K a noi P ap e r s c a se . 4. W e fi n d me r i t i n s uc h al t e r na t i v e p l e a to w ar ds ti m e l y d e po si t o f e m pl o y e e s’ c on t r ib ut i o n t o P F / ES I C q u a t h e du e da te p re s cr i b e d un d e r re l e v a n t l e gi sla t i on s a nd r e g u l a t i on s. T hu s wh i l e th e a c ti on o f I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 3 t he Re ve nu e f or ma ki n g a dj ust m e n t s t ow a r d s b e la t e d pa y m e nt t o e m pl o ye es ’ c o n t ri b u ti o n is e n d o rs e d o n fi rs t pr i n c ip l e s, t he ma t te r i s re s t o r e d ba c k to t h e fi l e o f t he d es i g n a te d A ss e s sing O ff i c e r fo r t h e pu r po se s o f a s c e r t ai n in g w h e t h e r t h e r e i s a n y d e l a y in d ep os i t o f suc h c ont r i b u t i o n s qu a t he d u e d a t e i n t he l i g ht o f t h e K a no i P a pe rs (su pr a). I t sh al l b e o p e n t o t h e as se ss e e t o pl a c e a l l fa ct u a l m a t ri x be fo r e th e A sse ss i ng O f fi c e r an d t a k e a l l p l e a s fo r e va l ua ti on a n d de t er mi na t i on o f th e iss ue by t h e A ss e ss in g O f fi c e r. T he A sse s si n g O ff ic e r sh a l l e xa m i n e t h i s a l t e r n a t i ve a sp e c t a n d pas s a f r es h or d e r i n a c co rd a n ce w i t h l a w a ft e r g i v i n g pr o p e r o pp o r t u nit y t o t he a ss es se e o f b e in g h e a r d. 5. I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a l lo w e d fo r st a t i st ic a l pu r p os e s . ITA N o. 2 86 5 /D e l / 2 02 2 A sse s s me n t Y e ar 20 20 - 2 1 6. T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss esse e ag ai n s t t h e or d e r o f t he l d. Co m m i s s i o n e r o f I nc o m e T a x (A p p e als) -N F A C, D el h i ( ‘ C IT (A ) ’ i n sh ort ) da t e d 1 8. 11 . 2 0 2 2 a ri si ng fr o m t he i nt i m a t i o n o r de r s d a t e d 1 2. 0 9 . 2 0 2 2 p a sse d by t he A ss e s si ng O ff i c e r (A O ) un d er S e c t i o n 1 43 ( 3) o f t h e I n c o m e T a x A c t , 196 1 (t h e A c t ) c on c e rn i n g A Y 202 0- 2 1. 7. A s pe r t h e g ro un d s o f a p p ea l , t he a ss e ss e e h a s cha l l e n ge d t he di s a l l o w a n c e o f R s. 3 5, 1 0, 01 3 / - u n de r S ec t i on 36 ( 1) (va ) w hi l e fr a m i ng t he a s se ss me nt un d e r S e c t i o n 143 (3 ) o f th e A c t . 8. T he l d . c o un se l f or t h e a ss es s ee h a s pl ac e d s i mil a r co nt e n t io ns a s i n I T A N o . 28 6 4 / D el / 2 0 2 2 i n r e s pe c t o f A ss e s s m e n t Y e a r 20 1 9 -2 0 (su pr a ) . 9. T he ob se rv a t i o n s i n A ss e s s m en t Y e ar 2 01 9 - 20 sh a ll ap p l y I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 4 m ut at i s m u t a n di s. T h e o rd e r o f t h e C IT ( A ) i s th us s et a si d e a nd t he ma t t e r i s re st ore d b a c k to t h e fi l e o f t he A ss es s i ng O f fi c er f or f re sh de t er mi na t i on o f th e i s su e on si m il a r l i n e s a s no ted i n I TA N o. 28 6 4/ D e l /2 02 2 . 10 . I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a llo w e d fo r st a t i st ic a l pu r p os e s . ITA N o. 2 86 2 /D e l / 2 02 2 A sse s s me n t Y e ar 20 18 - 1 9 11 . T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t he l d. Co m m i s s i o n e r o f I nc o m e T a x (A p p e als) -N F A C, D el h i ( ‘ C IT (A ) ’ i n sh ort ) da t e d 0 4. 11 . 2 0 2 2 a ri si ng fr o m t he i nt i m a t i o n o r de r s d a t e d 1 2. 0 1 . 2 0 2 0 p a sse d by t he A ss e s si ng O ff i c e r (A O ) un d er S e c t i o n 1 43 ( 1) o f t h e I n c o m e T a x A c t , 196 1 (t h e A c t ) c on c e rn i n g A Y 201 8- 1 9. 12 . A s p er th e g ro un d s o f a p p e a l , th e a sse s se e h a s c h al l e n g e d ; ( i ) di s a l l o w a n c e o f d ed uc t i o n o f R s. 50, 2 8, 5 3 4 / - u n d e r S e ct i on 8 0 J JA o f t h e A c t w h i l e d ra w i n g i n t i ma t i o n un de r S e c ti on 1 43 ( 1 ) o f t h e A c t . ( i i ) di s a l l o w a n c e o f e xp e n d i t u re o f Rs. 9 8 , 9 0, 81 4/ - b y i nv o k i n g p r o vi s i o n o f S e ct i o n 2( 24 ) (x) r. w . S e c t io n 36 ( 1) (v a) o f t h e A c t . 12 . 1 T he fi r s t i ss u e c o n c e r n s d e n ia l o f d e du c t i o n und e r S e c t i o n 80 J JA o n t h e gr ou n d t h a t t h e pr e sc r i be d F or m 1 0D A fo r t h e p ur po se s o f d ed uc ti o n u nd er S e c t i o n 80 J JA h a s no t a c co mp an ied t h e re t ur n o f i nc o m e. 13 . T he l d. c o un se l fo r t he a s se ss e e su b m i t s at t h e o u t se t t h at w hi l e t he d e d u c t i on u n de r S e ct i on 8 0 JJA i s c o nt i n gen t up o n I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 5 fu r ni sh i n g o f F o r m 10D A , t he r e q u i r e m e n t o f fu r n i s hi ng suc h fo r m 10 D A is d i re c t o r y in na t u r e a n d t h e re fo r e , m er e l y be c au s e F or m 10 D A w as fi l e d o n 28 . 09. 2 01 9 , i . e. , b e la t e d l y a ft e r t h e fi l in g o f re t ur n o f i nc o m e o n 2 4. 0 9 . 20 1 8, t h i s by i t se l f c a n no t b e th e g r o un d fo r d e n i a l o f d e d uc t i o n e n t i tl e d t o t h e a ss e s se e . Fo r th i s p ro p os i t i o n, t he l d. c o u ns e l r e f e r re d to t he d e ci si o n re n d e r e d by t h e Co - or d i na te Be nc h i n t h e c a s e o f J ea ns K ni t ( P . ) L t d. v s. D CI T , [ 2 0 22] 13 8 t ax m a nn . c o m 4 80 ( Ba ng al o re - T r i b. ) . T h e l d. c o un se l p o i n t e d o ut t ha t t he F o r m 1 0D A w a s fi l e d mu c h p r i o r t o i nt i m a tio n d ra w n u n d e r S ec t i on 1 43 ( 1 ) d a te d 1 2. 01 . 2 02 0 a n d t he re f o re , w hi le d ra w in g i nt i m a t i o n u n de r S e ct i o n 14 3( 1 ), t h e re l e v a n t for m w a s a va il a b l e t o CP C t o e n a b le i t t o gra n t d ed uc t i o n. T he CP C h a s w ron g l y d e n i e d t he de du c t i on m e r e l y fo r t h e re a s on s o f d el a y i n f ur n is hi ng t h e pr e sc ri b e d for m. T he l d. c ou nse l t h e r ea ft e r s u b m i t s t h a t i n t i ma t io n un d e r S e ct i o n 1 4 3( 1) h a s b ee n d ra w n w i th o ut g i v i n g a n y op por t u ni t y re q u i r e d u nd e r S e c ti o n 1 4 3( 1a ) r. w . pro vi so t h e r e t o a n d t he r e f or e a ls o th e a dj u s t m e n t is b a d i n l aw . 14 . T he ld . D R fo r t he Re v en ue , o n t h e ot he r h a n d , su b m i t t e d t h at t he p r o vi s i o n s o f R u l e 1 9A B i s pl a i n a nd c le a r w h i ch p r ovi de s t h a t re p o r t o f t h e A c co unt a n t i s r e q u i r e d t o b e f ur n i s hed by t h e a ss e s se e a lo ng w i t h r e t u r n o f i n c o m e un d er c l a us e ( c ) o f s ub se c t io n ( 2 ) o f S ec t i on 80 JJA . T hu s F o r m 1 0D A fi l e d be y o n d t h e d ue d a t e o f fi l i n g o f r e t u r n o f i nc o m e ge t s i n v a l i da t ed b y o p e r a t i on of l aw a nd c a n n ot be t a k e n i n t o a c c o u nt . T he ld . D R f urt he r s u b m i t t e d t h at or i g in al Ta x A u di t R e p o rt w a s f i l e d on 1 1 . 0 8. 20 1 8 i n w hi c h cl a i m o f de d u c t i on u n d e r S e c t io n 80 JJA w a s no t r e fl e c t e d. T he Ta x A u d i t Re po r t w a s a l so r e vi s e d by t h e as se ss e e o n 2 0. 0 9. 2 01 9 t o se e k cl a i m o f d ed uc t i o n. T hi s a c t is a l so no t p er m i ss i b l e . T he l d. D R t hu s r el i e d up o n t h e c o nc l u si o n dra w n b y t h e CIT ( A ) . I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 6 15 . W e h a ve h e ar d t h e ri v a l s ub m i ss i o ns o n t he i ss ue . 16 . I n t he in st a n t c a s e , t h e a ss e s se e h a s c l ai m e d de du c t i on o f Rs. 5 0 , 28, 5 4 1/ - un d e r S ec t i o n 80 JJA r. w . Rul e 1 9A B an d Ru l e 1 2 o f t he I n c o me T a x Ru le s i n qu e s t i on. A s poi n t e d o u t on b e ha l f o f t he a ss es se e , th e cl a i m o f de du c t i o n w a s d u ly ma d e i n the o r i g in al r et ur n o f i n c o m e b ut h o w e ve r s a m e w a s n ot r e p o rt e d in t he T a x A ud i t Re po r t . O n re a l iz i n g mi st a ke , th e T a x A u di t Re po rt w a s r e vi se d an d a ls o F o r m 10D A re qu i r e d fo r cl a i mi ng su c h de du c t i on w a s a l s o fi l e d a lb ei t a f t e r t h e f i l i n g o f o r i g i n a l r e t ur n o f i nc o me b ut be fo re t he da t e o f i n ti m a t i on . 17 . U n de r t he c i rc u m s ta n ce s, t h e a ss e s se e s e e ks t o s ub m i t t h at on c e t he s ub st a n t i al c o m p l i an ce ha s b e e n m ad e b y fil i n g t h e pr e sc ri b e d fo r m a lb ei t a f t er t h e r e t u r n o f i n c o m e , s u c h be l a t e d fi l i n g o f pr e sc ri b e d fo r m is no t f a t a l i n t he se ns e t ha t the re q u i r e me n t o f Ru l e 1 9A B a n d R u l e 1 2 ( 2) a re n o t m an da to ry pe r se b ut a re e ss en ti a l ly d ir e c t o r y i n n at ur e . W e fi n d t ha t t h e Ba n g a l o r e B e nc h i n J ea ns K n i t ( s u pr a ) ha s t a k e n a vi ew t ha t fi l i n g o f su c h p r e s c ri be d fo r m i s di re c to ry re qu i re me nt an d he n c e w ou l d st a n d s a t i s fi e d i f t he A cc o u nt a n t ’ s r ep or t i s fu r ni sh e d du r i n g t he c o ur se o f a ss e s s me nt . 18 . I n c o n s on an c e w i t h t h e v i ew t a k e n b y t h e C o - or di na t e B e nc h, t he d e n i a l o f d e du c t i on u n d e r S e ct i o n 80 JJA so le l y fo r re a s on s o f be l at e d f i l i n g o f t h e p r e s c ri be d for m i s no t j u s t i fie d . Co n se q ue nt l y, t he a c t io n o f t h e C I T (A ) i s se t a si d e a nd t he A s se ss i n g O ff i c e r i s di r e c t e d t o gr a n t re l i e f by w a y o f de d u ct i on a s c l ai m e d. G ro u nd N o . 1 i s ac c o rd i ng l y a l l o w ed . 19 . A s re g a r d s, th e s e c on d i ss u e t ow a r d s a l l ow a bi lit y o f d e d u c t i o n un d e r S e c t io n 36 ( 1 )( v a ), w e re st o r e t h e i ss ue b a c k t o t h e fi l e o f t h e A sse s si n g O ff ic e r fo r fr es h d et e r m i n a t i o n in a c c or da n ce w i th l a w o n I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 7 t he s i m i l a r li ne s a s no t e d i n I TA N o . 2 8 6 4/ D e l / 20 22 ( su pr a ) . 20 . I n t he re su lt , t h e a pp e a l o f t h e a sse ss e e i s a llo w e d fo r st a t i st ic a l pu r p os e s . ITA N o. 2 86 3 /D e l / 2 02 2 A sse s s me n t Y e ar 20 18 - 1 9 21 . T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t he l d. Co m m i s s i o n e r o f I nc o m e T a x (A p p e als) -N F A C, D el h i ( ‘ C IT (A ) ’ i n sh ort ) da t e d 0 9. 11 . 2 0 2 2 a ri si ng fr o m t he i nt i m a t i o n or de r d a t e d 18 . 0 4. 2 02 1 p a s se d by t h e A s ses si ng O ff ic e r (A O ) un d er S e c t i o n 1 43 ( 3) o f t h e I n c o m e T a x A c t , 196 1 (t h e A c t ) c on c e rn i n g A Y 201 8- 1 9. 22 . A s p e r t he gr o u n d s o f a p p e a l, t he a sse ss e e h a s c ha l l e n ge d di s a l l o w a n c e o f de du c t i on o f R s. 50 , 2 8, 5 34 / - u n de r Se c t i on 80 JJA o f t he A c t w hi l e fr a m i ng a s se ss me nt o rd e r u nd er S e c ti on 1 43( 3) o f t he A ct . 23 . T he i s su e c o n c e r ns d en ia l o f d e d uc t io n un de r S ec t i o n 8 0J J A o n t he g ro un d t h a t t h e p r e s c r i be d F or m 10 D A f or t he pur po se s o f de d u c t i on u n d e r S e ct i on 8 0 J JA h as no t be e n a c c o m p a ni e d th e r e t u r n o f i n co me . 24 . I de nt i c a l i s su e h a s be e n di sc us se d i n I TA N o . 2 86 2 / D el / 20 2 2. In t h e pr e s e n t a pp e a l , t h e as se ss e e ha s c h a l l e ng ed t h e de ni a l o f de d u c t i on i n t he re g u l a r as se ss m e nt pr oc ee d in gs u nde r S e c t i o n 14 3 (3 ) o f t h e A ct . T he d e d uc t i o n u nd er S e ct i o n 80 JJA w a s i n i t i a l l y de n i e d w h i l e d r aw i n g th e i nt i ma t i o n u n de r S e ct i on 143 ( 1 ) w hi c h ha s be e n c o n t es t e d in I TA N o. 28 62 / D e l / 2 0 22 . In t he p re se n t a pp ea l , t he de n i a l o f d e d uc ti o n i s i n t h e c o u r se o f re g u l a r a s se ss m e n t . T he fa c tu al po si t i o n b e i n g i d e nt i c a l , w e h o ld t h a t , on fi r s t p ri nc i pl e s, t he de n i a l o f d e d u c t i o n u nde r S e c t i o n 80 J J A i n t he re gul a r a s s e ss m e n t i s I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 8 no t j us t i fi e d f o r t he re a s on s p r o v i d e d i n t he pr e c ed i n g pa r a gr a p hs i n sy n c w i t h I T A N o. 28 6 2 /D e l /2 02 2. 25 . I t i s c o nt e n d e d o n be h a l f o f t he R e ve nu e v i d e it s w r i t t e n su b mi s si o n t h a t t h e A sse ss i n g O ffi c e r h a s a l s o ob ser v e d o n me r i t s t ha t c on d i ti on s o f S ec t i on 80 JJA A i s no t fo un d t o be fu l f il l e d i n t h e pr e se nt c a se a pa rt fr o m t he b el a t e d c o m pl i an ce o f su b m is sio n o f pr e sc ri b e d fo r m fo r c l ai m o f s u c h de d u ct i o n. Th e CIT (A ) ha s a dj ud i c a t e d th e i s s u e on f i r st pr i n c i p l e s t h at i m p ug ne d c l ai m un de r S ec t i on 8 0 JJA A i s n ot m a i nt a i n ab le d u e t o vi ol a t i o n o f f ur n i s hi ng o f re p o r t o f a c c o un t a n t i n p r e s c ri be d fo r m al o n g w i t h r e t u r n o f in co me . Th e CI T (A ) ha s n o t ad ju di c at e d t h e d i sa l l ow a nc e o f d e d u c t i o n ma de by A ss e s si n g O f fi c er o n me r it s. T h e Re v e n u e t h us c ont e n d s t h at no tw i t h st a n di ng t h e a l lo w a b i l i t y o f d ed uc ti o n un de r Se c t io n 8 0J J de s pi t e be l a t e d fi l i n g o f p r e s c r i b ed f o r m c a n v a ss ed on b eh a l f o f t he a ss es se e , th e i s su e i s r e q ui r e d t o b e e x a mi n e d o n mer it s a s w e l l . T he a ss es se e i s r eq ui re d t o d e m on st ra t e t he c o m p l i a n c e o f p re sc ri be d c on d i t i on s fo r el i g i bi l i ty o f d e d u c t i o n un de r S e c tion 8 0J JA A o n me r it s t o av ai l t h e b en e f it s. T he A s se ssi ng O ff ic e r i n p a ra g r a p h 1 2 o f t h e a s se ss me n t o rd e r h a s c l e a r l y o bse r v e d t h a t th e a s se s se e h a s fa i le d t o m e et t h e re q u i r e m e nt s e ve n on m e ri t s. T h e R e v en ue t h u s c on t e nd s t ha t t h e c l a i m o f t h e a s se sse e i s al so r e qu i re d t o b e n e g at e d e ve n o n me r i t s. In c ou nt e r, th e a ss e s se e i n i t s w rit t e n su b m i s sio n e la bo ra t es i t s ca s e fo r el i g i b i l i ty o f d ed uc t io n o n m e r i t s a n d c on t e nd s t h at t he re q u i r e me nt o f S e c t i on 8 0J JA A ha s b ee n d u l y fu l f i l l e d. 26 . I n th e a bs e n c e o f a ny ob se r v a t i o n o f t he CI T (A ) o n me r i t s a n d i n th e a b se nc e o f c o mp le t e f ac t s, w e ar e n o t i n a po si t io n to e x pre ss ou r op in i o n o n m e r i t s o f t h e e l i g i b i l i t y o f d e d u c t io n u n de r S e c t i o n 80 J JA A o f t he A c t. O n c on si d e r a t i o n o f t h e c ou nt e r s u b m i ss i o n s o f I.T.As. No.2862, 2863, 2864 & 2865/Del/2022 9 t he Re ve nu e a n d a sse ss e e on th e e l i g i bi l i ty o f de duct i o n on me r i t s, w e c o ns i d e r i t e x p e di e n t t o re st or e t he ma tt e r b a c k t o t he fi l e o f t he CI T ( A ). I t s ha l l b e o p e n t o t h e as s e ss e e t o d e m on str a te t ha t t he c ri te r ia f or el i g i b i l i ty o f de du c t i on u n d er S e c t i on 80 JJA A ha s b e e n du l y m e t fo r t he p u r po se o f s u c h c l ai m . T he CI T( A ) sh a l l a dj ud i c a t e t he i ss u e o f e l i g i b i l i t y o f d e d u c t i o n u n de r 80 JJA A o n m er i t s a ft e r gi v i n g p r o p e r o pp o rt u ni ty t o t h e as se s se e t o de m o n st r at e i t s c a s e . I n t he l i gh t o f t h e o b se r v a t i on s r ec o rd e d a b o ve , t h e is su e i s t hu s se t a si d e a n d r e s to r e d t o t he f i le o f t h e A sse ssi ng O f fi c e r f or d e n o v o a dj ud i c a t i o n in ac c or d a n c e w i t h l a w . 27 . I n t h e r e s ul t , t h e a pp e a l o f t he a s se ss e e i s a ll o w e d i n p a r t fo r st a t i st ic a l p u r p os e s . Order pronounced in the open Court on 18/10/2023 Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /10/2023 prabhat