NAICO INFORMATION TECHNOLOGY SERVICES PVT LTD,ERNAKULAM V. THE ITO, CORPORATE, WARD 2(4), KOCHI

ITA 669/COCH/2023

AI Insights

The case involves Naico Information Technology Services Private Limited, which appealed against the order of the Commissioner of Income-tax (Appeal), NFAC, Delhi, for the assessment year 2017-18. The primary contention was regarding the non-acceptance of Form 56F, which was allegedly filed on 29.10.2017 but not found in the department's records. The Assessing Officer had disallowed the claim of deduction under section 10AA of the Income Tax Act, citing the absence of Form 56F at the time of the return filing. The CIT(A) upheld this decision, leading to the present appeal. The tribunal noted the technical issues reported by the assessee in uploading the form and decided to remand the case back to the CIT(A) for a thorough examination of these claims.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 470719 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 20-09-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V.SWARNALATHA
• Assessee Lawyers: K M V PANDALAI
• Section: 143(2); 54F; 10AA

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, COCHIN BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA No.669/Coch/2023 Assessment Year: 2017-18 Naico Information Technology Services Private Limited Office No. 0405B, 4th Floor, SCK 01, Smart City (Kochi) SEZ Kakkanad Ernakulam, Kerala – 682042. PAN: AACCN 3127 E Vs. ITO, Corporate Ward- 2(4), Kochi (Appellant) (Respondent) Present for: Assessee by : Shri K M V Pandalai, Advocate Revenue by : Smt. V. Swarnalatha, Sr. DR Date of Hearing : 20.08.2024 Date of Pronouncement : 18.11.2024 O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: This appeal of the assessee for the assessment year 2017-18 is directed against the order dated 28.07.2023 passed by the ld. Commissioner of Income-tax (Appeal), NFAC, Delhi. The assessee has raised the following grounds of appeal: “1. The orders passed by the authorities below are opposed to law, facts and circumstances of the case. Hence illegal and unsustainable. 2. The ld. CIT(A) erred in confirming the order passed by the Assessing Officer without properly appreciating the contention that the appellant had filed Form 56F on 29.10.2017 and that later on verification it was not found in the officer web site of the Respondent-Department. 3. The authorities below failed to note that the Form No. 56F filed on 25.02.2019 is the copy of Form 56F already uploaded on 29.10.2017. ITA Nos.669/Coch/2024 Naico Information Technology Services Pvt. Ltd. A.Y. 2017-18 2 4. The authorities below erred in not accepting the copy of 56F filed on 29.10.2017 and in disallowing the claim of exemption made by the appellant in the facts and circumstances of the case. 5. The Commissioner of Income Tax (Appeal) ought to have independently considered and accepted the copy of Form 56F filed on 29.10.2017 and deleted the addition of Rs. 48,58,390/- made by the Assessing Officer. 6. The authorities below ought to have borne in mind that the report in Form 56F could be uploaded only after incorporating the digital signature. The authorities erred in rejecting the copy of Form No. 56F for want of signature. 7. The authorities ought to have taken a lenient view in this case, as there was no lapse on the part of the Appellant/Assessee in filing the audit report in Form 56F along with the return of income, as required u/s 10AA(8) of the Act.” 2. Fact in brief is that return of income declaring total income of Rs. 48,58,390/- was filed on 24.10.2017. The case was subject to scrutiny assessment and notice u/s 143(2) was issued on 21.08.2018. During the course of assessment, the AO noticed that audit report was filed on 01.09.2017 however Form No. 56F was not filed on 01.09.2017 or along with return of income, therefore, assessing officer has disallowed the claim of deduction u/s 10AA of the Act. 3. The assessee filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee reiterating the fact as stated by the assessing officer. 4. Heard both the sides and perused the material on record. Without reiterating the fact as discussed supra in this order, the assessee in its submission before the ld. CIT(A) has submitted that Form 56F was filed during the initial period of computerization and same was uploaded on 29.09.2017 and Form No. 56 filed on 25.02.2019 was the copy of Form 56 which was already uploaded on 29.10.2017. However, the ld. CIT(A) has not considered this fact that Form No. 56F was already filed on ITA Nos.669/Coch/2024 Naico Information Technology Services Pvt. Ltd. A.Y. 2017-18 3 29.10.2017. The assessee has further reported that there was technical problem in uploading the Form No. 56F as the same could not be uploaded only after incorporating the digital signature. We find that ld. CIT(A) has not considered of these technical difficulties faced by the assessee in uploading Form 54F at the initial stages of computerization of process of uploading such form. 5. In the light of the above fact and finding, we restore this case to the file of the ld. CIT(A) for deciding on merit, therefore, this ground of appeal of the assessee is allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 18.11.2024. Sd/- Sd/- (SATBEER SINGH GODARA) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18.11.2024 Biswajit, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. The CIT, 4. The DR //True Copy// [ By Order Assistant Registrar ITAT, Cochin Bench, Cochin "