ITAT Pune Holds Late Form 10DA Filing as Procedural: 80JJAA Deduction Restored

Overview

The Pune Bench of the Income Tax Appellate Tribunal (ITAT) in the case of Expert Global Solutions Private Limited Vs DCIT has clarified that a delayed filing of Form 10DA, by itself, does not justify denial of deduction under Section 80JJAA of the Income Tax Act 1961, where the underlying conditions for the deduction are otherwise satisfied.

The Tribunal treated the requirement of filing the audit report in Form 10DA within the prescribed time as a procedural formality, not a substantive precondition affecting eligibility to the deduction. Since the Form 10DA was ultimately available before completion of the proceedings and the claim otherwise met the statutory conditions, the assessee’s claim under Section 80JJAA was directed to be allowed.

This decision reiterates the important distinction drawn by the Hon’ble Supreme Court between:

  • Exemption provisions under Chapter III, which must be strictly fulfilled, and
  • Deduction provisions under Chapter VI-A, where procedural lapses do not automatically override substantive rights, if the assessee otherwise qualifies.

Case Background

Appeals and Assessment Years

The matter arose from two appeals filed by Expert Global Solutions Private Limited against separate orders dated 27.08.2025 passed by the Ld. Addl. / JCIT(A), Jodhpur, for:

  • Assessment Year (A.Y.) 2021-22, and
  • Assessment Year (A.Y.) 2022-23.

Both appeals involved the same legal controversy – denial of deduction under Section 80JJAA solely due to belated filing of Form 10DA. Accordingly, the Tribunal disposed of them through a common order.

Facts – A.Y. 2021-22

Return of Income and Claim under Section 80JJAA

  1. The assessee filed its return of income on 16.02.2022 declaring a total income of Rs. 8,12,99,130/-.
  2. In this return, the assessee claimed deduction of Rs. 26,06,220/- under Section 80JJAA.
  3. The Centralized Processing Centre (CPC) disallowed the claim of Rs. 26,06,220/- while issuing intimation under Section 143(1) on 28.12.2022.
  4. The only reason for disallowance was that Form 10DA was filed after the prescribed time – i.e. belated filing of the audit report.

CIT(A) Order

In appeal, the Ld. Addl. / JCIT(A) sustained the CPC’s adjustment. His key findings were:

  • For A.Y. 2021-22, the due date for filing the return of income under Section 139(1) was 30.11.2021, subsequently extended to 15.03.2022 by the Government.
  • The assessee’s return filed on 16.02.2022 was therefore within the extended due date.
  • However, Form 10DA for A.Y. 2021-22 was filed only on 27.01.2023.
  • Statutorily, Form 10DA was required to be furnished at least one month before the due date for filing the return under Section 139(1).
  • CBDT Circular No. 1/2022 dated 11.01.2022 had extended the due date for filing certain audit reports to 15.02.2022.
  • Since Form 10DA was filed after even this extended due date and in fact after the return filing due date, the Ld. Addl. / JCIT(A) held that the assessee did not satisfy the statutory condition and therefore was not eligible for deduction under Section 80JJAA.

Accordingly, the disallowance made in the intimation under Section 143(1) was confirmed.

Grounds Raised Before the ITAT – A.Y. 2021-22

The assessee challenged the disallowance primarily on a single substantive ground: