KGISL TECHNOLOGIES PRIVATE LIMITED,COIMBATORE, TAMIL NADU V. DEPUTY DIRECTOR OF INCOME TAX, CENTRALISED PROCESSING CENTRE

ITA 463/CHNY/2025

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The case involves KGISL Technologies Pvt. Ltd., which appealed against the order of the Learned Addl. Commissioner of Income Tax (Appeals), Mumbai, concerning the disallowance of a deduction claimed under section 80JJAA and the non-grant of full TDS credit as per their return of income for the Assessment Year 2023-24. The primary contention was whether the Form 10DA, required for claiming the deduction under section 80JJAA, was filed in compliance with the statutory timeline. The Tribunal found that the Form 10DA was indeed filed within the required timeframe, contrary to the Addl. CIT(A)'s finding, and thus the deduction should be allowed. Regarding the TDS credit issue, it was noted that the assessee company, post-demerger, had not received the TDS credit in its name for the income that was offered to tax, which was originally under the name of the demerged entity.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712228 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A.T.KRISHNAMOORTHY
• Assessee Lawyers: S.P.CHIDAMBARAM
• Keywords: Business income; TDS; Rectification of order
• Section: 154

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.463/Chny/2025 िनधा:रण वष: /Assessment Year: 2023-24 M/s. KGISL Technologies Pvt. Ltd., SF-365, Thudiyalur Road, Saravanampatti, Coimbatore – 641 035. Vs. The Dy. Commissioner of Income Tax, Corporate Circle-1, Coimbatore. [PAN: AAICK 9819Q] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Appellant by : Shri S.P.Chidambaram, Advocate GHथ की ओर से /Respondent by : Shri A.T.Krishnamoorthy, JCIT सुनवाई की तारीख/Date of Hearing : 26.06.2025 घोषणा की तारीख /Date of Pronouncement : 30.07.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2023-24 arises out of the order of Learned Addl /Jt. Commissioner of Income Tax, Appeal, Addl. JCIT(A)-1, Mumbai [hereinafter “Addl. CIT(A)”] dated 16.12.2024 in the matter of intimation issued by the CPC, Bengaluru [CPC] u/s.143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 22.12.2023. Printed from counselvise.com ITA No.463/Chny/2025 KGISL Technologies Pvt Ltd. :- 2 -: 2. The effective grounds of appeal in this appeal are against the disallowance of deduction claimed u/s. 80JJAA of the Act, and non- grant of full TDS credit as claimed in the return of income, in the order passed under section 154 r.w.s. 143(1) of the Act. 3. The assessee-company has filed its return of income declaring total income of Rs. 7,89,76,180/-. The CPC vide intimation u/s. 143(1) of the Act had disallowed the deduction u/s. 80JJAA of the Act of Rs.2,20,62,033/-. The assessee filed rectification petition u/s. 154 of the Act and the CPC allowed deduction u/s. 80JJAA of the Act, but not granted full TDS credit of Rs. 2,35,12,376/- against the claim of Rs.7,34,51,948/-. Aggrieved by the 143(1) adjustments, the assessee filed an appeal before the Ld. Addl. CIT(A), who confirmed the disallowance u/s. 80JJAA of the Act made in the intimation u/s. 143(1) of the Act stating that the assessee has filed Form-10DA on 31.10.2023 which should have been filed one month before filing of the return. 4. The Ld. Authorized Representative (A.R) has submitted that the return of income along with Form 10DA was filed on 31.10.2023 and Printed from counselvise.com ITA No.463/Chny/2025 KGISL Technologies Pvt Ltd. :- 3 -: the extended due date for filing the return was 30.11.2023. Therefore, Form 10DA was filed one month prior to the due date, and the Ld. Addl. CIT(A) was not justified in confirming the disallowance. It was further submitted that the CPC, in its order passed u/s. 154 of the Act, had itself allowed the deduction u/s. 80JJAA of the Act. The Ld. A.R. also submitted that the CPC failed to grant TDS credit in the name of M/s. KG Information Systems Pvt. Ltd., from which the assessee- company was demerged, and the corresponding income was offered to tax by the assessee. 5. The Ld. Departmental Representative (DR), has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The assessee filed its return of income on 31.10.2023 and claimed deduction u/s. 80JJAA of the Act amounting to Rs. 2,20,62,033/- by filing Form 10DA along with the return. The Ld. Addl. CIT(A) denied the deduction stating that Form 10DA was not filed at least one month before the date of filing the return. We find that the extended due date for filing the return by the assessee was Printed from counselvise.com ITA No.463/Chny/2025 KGISL Technologies Pvt Ltd. :- 4 -: 30.11.2023, and Form 10DA was filed on 31.10.2023, which was one month prior to the due date. Therefore, the assessee has complied with the requirement u/s 80JJAA(2)(c) of the Act and is eligible for the deduction u/s. 80JJAA of the Act. Moreover, the CPC has already allowed the claim in the rectification order passed u/s. 154 of the Act. In view of the above, the AO is directed to delete the disallowance confirmed by the Ld. Addl. CIT(A). 7. With regard to the TDS claim, the assessee submitted that M/s. KG Information Systems Pvt. Ltd. has demerged into two companies i.e., KGISL Technologies Pvt. Ltd. and KG Invicta Services Pvt. Ltd., as per the order of the Hon’ble NCLT, Chennai, with effect from 01.10.2021. The business receipts of both companies were invoiced and received in the name of the erstwhile KG Information Systems Pvt. Ltd., and accordingly, TDS was also deducted in its name. However, the said company has not claimed the TDS pertaining to the demerged entities and the corresponding income has been offered to tax in the return of the demerged entities, the Ld. AR therefore prayed that the TDS credit should be allowed in the hands of assessee corresponding to the income. We find merit in the submissions of the Ld. A.R. and Printed from counselvise.com ITA No.463/Chny/2025 KGISL Technologies Pvt Ltd. :- 5 -: direct the A.O to verify the claim and allow the TDS credit in accordance with law. 8. In the result, the appeal filed by the assessee is partly allowed. Order pronounced on 30th day of July, 2025 at Chennai. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 30th July, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Coimbatore 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF Printed from counselvise.com "