RNS FACILITIES SERVICES PRIVATE LIMITED,KOLHAPUR. V. INCOME TAX OFFICER, KOLHAPUR

ITA 1959/PUN/2025

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The case involves RNS Facilities Services Private Limited, which appealed against the order of the CIT(A) denying them a deduction under section 80JJAA of the IT Act due to a procedural delay in filing Form 10DA. The assessee had claimed a deduction of Rs.61,81,722 under section 80JJAA in their return of income for the assessment year 2023-24. Although the deduction was quantified in the tax audit report (Form 3CD), the Form 10DA, certifying the eligible amount of deduction, was filed late by 11 days. The CPC denied the deduction based on this delay, leading to the appeal before the Tribunal. The Tribunal considered precedents and the procedural nature of the filing requirement, ultimately deciding to remand the matter for a detailed verification of the claim.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839599 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 19-08-2025
• Other Referred Cases: Tarasafe International Pvt. Ltd. vs. DDIT, CPC, Bengaluru, CIT, Maharashtra Vs. G. M. Knitting Industries Pvt. Ltd., Pr. CIT-III, Bangalore & anr. Vs. M/s. Wipro Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ TRIPATHI VIRTUAL
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Set aside; Depreciation; Additional depreciation
• Section: 139; 10B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1959/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2023-24 RNS Facilities Services Private Limited, S -07/08, 2nd Floor, Business Bay, Near Aditya Corner, Tarabai Park, Kolhapur Karvir, Kolhapur H.O., Kolhapur- 416001. PAN : AAICR1157Q Vs. DCIT, CPC, Bengaluru. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: This appeal filed by the assessee is directed against the order dated 29.07.2025 passed by Ld. Addl./JCIT(A), Bhubaneswar [‘Ld. CIT(A)’] for the assessment year 2023-24. 2. The appellant has raised the following grounds of appeal :- “1. On the facts and circumstances of the case and in law the CIT(A), NFAC erred in confirming the action of the ADIT CPC Assessee by : Shri Pramod S. Shingte Revenue by : Shri Manoj Tripathi (Virtual) Date of hearing : 10.12.2025 Date of pronouncement : 24.02.2026 Printed from counselvise.com ITA No.1959/PUN/2025 2 of not allowing deduction u/s 80JJAA (by way of prima facie adjustment) as claimed by the appellant in the return of income for delayed filing of the requisite Form 10DA being the report of the Chartered Accountant certifying the eligible amount of deduction under the said section. The appellant submits as under in this respect, without prejudice to each other: a. The adjustment made u/s 143(1) is beyond the scope of adjustment as per section 143(1)(a). b. The details of eligible amount of deduction being otherwise available with the ADIT, it is incorrect on his part to deny the deduction just on account of this procedural default. c. Though late, the appellant having filed Form 10DA, it is eligible for deduction under section 80JJAA. d. The eligible amount of deduction having been duly certified by the Chartered Accountant in Form 3CD, though not in Form 10DA, the deduction to which the appellant company is otherwise eligible ought not to have been denied by the ADIT. The appellant prays that the ADIT be directed to allow the deduction as claimed. The appellant craves leave to add, amend, alter, modify, delete or add a new ground of appeal before or at the time of hearing.” 3. Facts of the case, in brief, are that the assessee is a company and has furnished its return of income for the year under consideration on 12.10.2023 u/s 139(1) of the IT Act declaring Nil income after claiming deduction of Rs.61,81,722/- u/s 80JJAA of the IT Act. The assessee company also uploaded tax audit report in Form 3CD on 27.09.2023 wherein deduction of Rs.61,81,722/- u/s 80JJAA of the IT Act was duly quantified. However, the assessee Printed from counselvise.com ITA No.1959/PUN/2025 3 company uploaded Form 10DA [wherein eligible amount of deduction u/s 80JJAA of the IT Act is certified by a Chartered Accountant] with a delay of 11 days i.e. on 11-10-2023 & not at least one month before the due date for furnishing the return of income under sub-section (1) of section 139 of the IT Act as prescribed u/s 44AB of the IT Act. Therefore, CPC vide Intimation order dated 22.12.2023 denied the claim made by the assessee company u/s 80JJAA of the IT Act. 4. Being aggrieved with the above Intimation order, the assessee preferred an appeal before Ld. CIT(A). After considering the reply furnished by the assessee, Ld. CIT(A) dismissed the appeal filed by the assessee by observing as under :- “6. Consideration of issues under appeal and reasons for decision:- 6.1. In the instant appeal, the sole issue of the appellant is not allowing the deduction u/s 80JJAA as claimed by the appellant. Appellant’s submission, ITR, and intimation order has been perused. Upon reviewing the document, it is found that the appellant has filed the ITR on 12.10.2023.Upon going through the section 80JJAA, it specifically mentions that the due date is as specified in section 44AB of the Act. The sub-section 2 of section 80JJAA is produced below: (2) No deduction under sub-section (1) shall be allowed,— … (c) unless the assessee furnishes [the report of the accountant, as defined in the Explanation below sub-section (2) of section 288, before the specified date referred to in section 44AB] giving such particulars in the report as may be prescribed. 6.1.1. Further, the due date for furnishing the audit report is one month before the due date for filing of ITR u/s 139(1) of the Act. Hence, Form 10DA should have been filed at least one month before the due date for Printed from counselvise.com ITA No.1959/PUN/2025 4 furnishing the return of income under subsection (1) of section 139 of the Act. But the assessee has filed Form 10 DA on 11.10.2023, which is beyond the due the as specified in the Act. The AO doesnot have the power to condone the delay as the same vests with the Jurisdictional PCIT. The appellant may explore the revising the return with an application to the concerned authority, if applicable to its case. 7. As a result, the appeal is dismissed.” 5. It is the above order against which the assessee is in appeal before this Tribunal. 6. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book and copy of case laws furnished by the assessee. In this regard, we find that the assessee company got its books of accounts audited and furnished the audit report in Form 3CD on 27.09.2023. However, Form 10DA Audit Report could not be uploaded by 30.09.2023. The assessee company furnished its return of income on 12.10.2023 u/s 139(1) of the IT Act claiming deduction u/s 80JJAA of the IT Act. Since Form 10DA Audit Report was furnished on 11.10.2023 i.e. with a delay of 11 days, CPC, after informing the assessee on email [e-mail], denied the deduction u/s 80JJAA of the IT Act claimed in the return of income. However, before us it was the contention of Ld. Counsel of the assessee that filing of Form 10DA is procedural and directory, therefore, CPC is not Printed from counselvise.com ITA No.1959/PUN/2025 5 justified in denying the claim made by the assessee merely on technical ground of delay, since Form 10DA Audit Report was furnished by the assessee prior to filing the return of income and it was very well available with CPC prior to processing of return of income u/s 143(1) of the IT Act. In support of this contention, Ld. AR placed reliance on various coordinate bench decisions including the decision passed in the case of Tarasafe International Pvt. Ltd. vs. DDIT, CPC, Bengaluru, ITA No.627/Kol/2024 order dated 03.10.2024 for assessment year 2023-24 wherein under identical facts deduction u/s 80JJAA of the IT Act was allowed by observing as under :- “2. The short issue involved in this appeal is as to whether the late filing of audit report in Form 10DA would disentitle the assessee from claiming deduction u/s. 80JJAA of the Act, when the said Form 10DA was available to the Ld. AO at the time of assessment proceedings. The assessee in this case filed the Form 10DA on 27.10.2023 as against the due date of 30.09.2023 but, the same was available to the AO at the time of processing the return of income as the notice u/s. 143(1)(a) of the Act was issued by the CPC to the assessee on 23.11.2023. 3. The issue is squarely covered by the decision of Hon’ble Supreme Court in the case of CIT, Maharashtra Vs. G. M. Knitting Industries Pvt. Ltd. [2016]12 SCC 272, wherein the Hon’ble Supreme Court has held that, even though it is necessary to file certificate in Form 10CCB along with the return of income, but even if the same has not been filed with the return of income, but the same was filed before the final order of assessment was made, the assessee was entitled to claim deduction u/s. 80-IB of the Act. 4. So far as the reliance of the ld. DR on the another decision of the Hon’ble Supreme Court in the case of Pr. CIT-III, Bangalore & anr. Printed from counselvise.com ITA No.1959/PUN/2025 6 Vs. M/s. Wipro Ltd. reported in [2022] 446 ITR 1 (SC) is concerned, it is to be observed that the said case is relating to the claim of exemption u/s. 10B falling under Chapter III of the I. T. Act. However, the claim of the assessee in the case in hand is u/s. 80JJAA of the Act under Chapter VIA of the Act. The Hon’ble Supreme Court in para 11 of the judgment in the case of M/s. Wipro Ltd. (supra) has clarified the position that the exemption provisions are to be strictly adhered to whereas the decision of the Hon’ble Supreme Court in the case of G. M. Knitting Industries Pvt. Ltd. (supra) is relating to deduction provisions u/s. VA of the Act the relevant para 11 of the order of the Hon’ble Supreme Court in the case of M/s. Wipro Ltd. (supra) is reproduced below: “11. Now so far as the reliance placed upon the decision of this court in the case of G. M. Knitting Industries Pvt. Ltd. (supra), relied upon by the learned counsel appearing on behalf of the assessee is concerned, section 10B(8) is an exemption provision which cannot be compared with claiming an additional depreciation under section 32(1)(ii-a) of the Act. As per the settled position of law, an assessee claiming exemption has to strictly and literally comply with the exemption provisions. Therefore, the said decision shall not be applicable to the facts of the case on hand, while considering the exemption provisions. Even otherwise, Chapter III and Chapter VIA of the Act operate in different realms and principles of Chapter III, which deals with “income which do not form a part of total income”, cannot be equated with mechanism provided for deductions in Chapter VIA, which deals with “deductions to be made in computing total income”. Therefore, none of the decisions which are relied upon on behalf of the assessee on interpretation of Chapter VIA shall be applicable while considering the claim under section 10B(8) of the I. T. Act.” In view of this, the issue is squarely covered in favour of the assessee by the decision of the Hon’ble Supreme Court in the case of G. M. Knitting Industries Pvt. Ltd. (supra) the impugned order of the Ld. CIT(A) is, therefore, set aside and the AO is directed to grant deduction to the assessee u/s. 80JJAA of the Act as claimed. The appeal of the assessee stands allowed. 5. In the result, the appeal of the assessee stands allowed.” 7. Respectfully following the above decision of coordinate bench of the Tribunal in the case of Tarasafe International Pvt. Ltd. Printed from counselvise.com ITA No.1959/PUN/2025 7 (supra), which was also followed by Jurisdictional Pune Tribunal in ITA No.1111/PUN/2025 order dated 26.08.2025, we hold that the filing of audit report in Form 10DA is procedural, however at the same time we also observe that obtaining Form 10DA Audit Report prior to filing of income tax return is mandatory since quantification of deduction u/s 80JJAA of the IT Act is certified by Chartered Accountant in this form. 8. Considering the totality of the facts of the case and in view of our above discussion, we deem it appropriate to set-aside the order passed by Ld. CIT(A) and remand the matter back to the file of the Jurisdictional Assessing Officer with a limited direction to verify the claim made by the assessee u/s 80JJAA of the IT Act on the basis of Form 10DA Audit Report filed by the assessee with a delay of 11 days, but prior to filing of return of income, since the same was not considered by CPC while processing the return of income u/s 143(1) of the IT Act. Needless to mention here that the Jurisdictional Assessing Officer shall decide the claim of the assessee after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by the Jurisdictional Assessing Officer in this regard Printed from counselvise.com ITA No.1959/PUN/2025 8 without taking any adjournment under any pretext, otherwise the Jurisdictional Assessing Officer shall be at liberty to pass appropriate orders as per law. Thus, the grounds of appeal raised by the assessee are allowed for statistical purposes. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 24th day of February, 2026. Sd/- Sd/- (MANISH BORAD) (VINAY BHAMORE) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 24th February, 2026. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Addl./JCIT(A), Bhubaneswar. 4. The Pr.CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "