Income Tax Appellate Tribunal - Delhi
Acit, Circle-52(1), New Delhi vs Dailmaz Exports, New Delhi on 31 December, 2024
I.T.A.Nos.2777 & 2769/Del/2024
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "B" NEW DELHI
BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER
AND
SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER
आ.अ.स/ं .I.T.A Nos.2777 & 2769/Del/2024
िनधारणवष/Assessment Years: 2014-15 & 2018-19
ACIT बनाम Dailmaz Exports,
Circle-52(1), Vs. Shop No.3, Le Meridien Hotel,
Room No.1405, Janpath, Central Delhi,
th
14 Floor, E-2 Block, New Delhi.
Civic Centre, PAN No.AAFFD7035D
New Delhi.
अपीलाथ Appellant यथ /Respondent
Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR
Assessee by Shri Gaurav Jain, Adv.
Ms. Bharti Sharma, Adv. &
Sh. Vidhi Karan, Adv.
सनु वाईक तारीख/ Date of hearing: 19.12.2024
उ ोषणाक तारीख/Pronouncement on 31.12.2024
आदेश /O R D E R
PER C.N. PRASAD, J.M.
These two appeals are filed by the Revenue against the order of the Ld. Addl./JCIT (Appeals)-NFAC in allowing claim for deduction u/s 10AA of the Income Tax Act, 1961.
2. The Ld. Counsel for the assessee, at the outset, submits that claim for deduction u/s 10AA of the Act was denied by CPC-Bangaluru while processing the return u/s 143(1) of the Act on account of 1 I.T.A.Nos.2777 & 2769/Del/2024 technical glitch. The Ld. Counsel submits that the assessee has been claiming the deduction u/s 10AA of the Act since AY 2011-12 and the assessment year in appeal is the fourth year of claiming of deduction.
The jurisdictional Assessing Officer had assessed the claim of deduction u/s 10AA of the Act and allowed in the previous assessment years and also in the subsequent assessment year 2016-17 while completing the assessment u/s 143(3) of the Act.
3. The Ld. Counsel for the assessee further submitted that while filing ITR V there was a technical error/glitch in the software used by the assessee for preparing .xml file format. It is submitted that in the said format inadvertently the deduction u/s 10AA could not be captured in appropriate column of the computation of income.
However, the total income in the same schedule of computation of income was duly computed after considering the deduction claimed u/s 10AA of the Act. Accordingly the assessee correctly mentioned its taxable income. It is further submitted that in schedule AMT pt 2(b) of ITR V duly reflects the deduction u/s 10AA of the Act and the adjusted total income u/s 115JC and the tax thereon has also been duly shown in the said schedule. Therefore, it is submitted that in the electronic filing environment technical mistakes are bound to occur due to reasons beyond the control of the human being and the 2 I.T.A.Nos.2777 & 2769/Del/2024 bona fide claim must be allowed sans such errors. The online filing system being new and the technical glitches and errors cannot be ruled out. Ld. Counsel therefore submits that the Ld. Addl./JCIT(Appeals) correctly appreciated the position and allowed the claim of deduction u/s 10AA which was denied due to technical glitches by the CPC-Bangaluru while processing return u/s 143(1) of the Act.
4. On the other hand, the Ld. DR supported the orders of the authorities below.
5. Heard rival submissions, perused the orders of the authorities below. We observe that the claim for deduction u/s 10AA of the Act was not allowed by the CPC due to inadvertent mistake in e-filing of return of income. The assessee made his elaborate submissions before the Ld. Addl./JCIT(Appeals) with evidences stating that while e-filing the return there corrupt an error due to which the deduction claimed u/s 10AA was denied even though the assessee has duly furnished Form 56F in the prescribed Form by Chartered Accountant.
We observe that the Ld. Addl./JCIT(Appeals) after considering the submissions and the evidences allowed the claim of the assessee observing as under:
"6. During the course of Appellate Hearing, the appellant has uploaded his replies on 16.03.2021, 3 I.T.A.Nos.2777 & 2769/Del/2024 20.08.2021, 06.01.2024 and 08.01.2024 along with relevant document on e- filing portal and the relevant parts of which are reproduced hereunder: -
APPELLANT'S SUBMISSIONS:
been mentioned in computation of income on net basis after duly considering the deduction under section 10AA 1.2. The assessee has obtained the tax audit report under section 44AB and report of accountant in the prescribed form 56F wherein, deduction under section 10AA has been duly claimed by filing form 56F & 29C.
The same hits been unloaded on the Income: Tax Portal along with the return of income and form 29C [for computation of AMT u/s 115JC] before the due date of filing tax return. Alter claiming the said deduction, the assessee has declared total income of Rs.3,05,31,560/- as per the acknowledgement ITR-V attached as PB-1. Accordingly, there is an omission of bona fide claim of deduction for AY 2018-19.
1.3 In Form 29C supra, while computing the AMT, the assessee has considered deduction claimed under section 10AA as per section 115JD of the Act. The same was available in records while processing the ITR under section 143(1) (PB 67-71). Further, the respective schedules AMT & AMTC of the ITR-5 also mention the deduction under section 10AA. (PB 48).
1.4 It is submitted the appellant has been claiming the deduction under section I0AA since AY 11-12 and the concerned AY was the eighth year of claiming the deduction. Further, the jurisdictional assessing officer had assessed the claim of sect ion 1GAA in the previous AYs under section 143(3) of the Act 1.5 It is humbly submitted, while filing ITR 5, there was a technical error/ glitch in the software used by the assessee for preparing .xml file format. In the said format, inadvertently the deduction under section 10AA could not be captured in appropriate column of the computation of income. However, the total income in the same schedule of computation of 4 I.T.A.Nos.2777 & 2769/Del/2024 income; was duly computed at Rs.3,05,31,560/- (on Net Basis) after considering, the deduction of Rs, 3,03,36,727. Accordingly, the assessee correctly mentioned, his taxable income. Further Schedule AMT pt 2(b) of ITR 5 duly reflects the deduction under section 10AA for Rs.3,03,36,727/-. Further, the adjusted total income u/s 115JC(1) for Rs.6,08,68,287/- and the tax thereon amounting to Rs.1,12,60,633/- has also been duly shown in the said schedule. The SCHEDULE AMT (Alternate Minimum Tax) is reproduced below for your reference:
Schedule AMT - Computation of Alternate Minimum Tax payable u/s 115JC 1 Total income as per item 13 of 1 30531560 Part-B-TI 2 Adjustment as per section 115JC(2) a Deduction claimed 2a 0 under any section included in Chapter VI-A under the heading "C -
Deduction in respect of certain incomes"
b Deduction claimed 2b 30336727
u/s 10AA
c Deduction claimed 2c 0
u/s 35AD as reduced
by the amount of
depreciation on
which such
deduction is claimed
d Total Adjustment 2d 30336727
(2a+2b+2c)
3 Adjusted Total Income under 3 60868287
section 115JC(1)+(1+2d)
4 Tax payable under section 4 11260633
115JC[18.5% of (3)](In the case of
Individual HUF, AOP, BOI AJP this is
applicable if 3 is greater than Rs.20
lakhs)
It would thus be seen that the assesses has claimed and thereafter added back deduction u/s 10AA while computing the adjusted total income for payment of AMT which has been duly shown in the income tax return filed by the assesses.
Further extract of Part B - T1 Computation of total income is reproduced below for your reference:
5I.T.A.Nos.2777 & 2769/Del/2024 13 Total Income (9-11-12c) 13 30531560 14 Income chargeable to tax at special rates (total 14 0 of (i) of schedule St) 15 Net agricultural income/any other income for 15 0 rate purpose (4 of schedule EI) 16 Aggregate Income (13+14+15)[applicable if (13- 16 30531560
14) exceeds maximum amount not chargeable to tax] 17 Losses of current year to be carried forward 17 0 (total of xi of schedule CPL) 18 Deemed total income under section 115JC (3 of 18 60868287 Schedule AMT) It would thus be seen that the assessee has declared total income of Rs.3,05,31,560/- (net of deduction u/s 10AA of Rs.3,03,36,727) and the adjusted total income u/s 115JC(1) for Rs.6,08,68,287/-.
1.6 It is humbly submitted that it is obvious that in the electronic filing environment technical mistake are bound to occur due to reasons beyond the control of the human being and the bona fide claim must be allowed sans such errors. The online filing system being new and the technical glitches and errors cannot be ruled out. To err is human and therefore an opportunity may be provided for rectifying the bona fide error. Further, the legal position of the assessee may be appreciated in letter and spirit as it is eligible for deduction under section 10AA and well have been allowed the benefit in the past years also. Mere typographical error/ technical mistake cannot, bereave the appellant of the legitimate claim.
7. Decision:-
7.2 On Grounds of Appeal No.1, 2, 3:- All these grounds of appeal are related with the addition of Rs.3,03,36,727/-
on account of disallowance of deduction claimed under section 10AA of the Income Tax Act, 1961, hence, discussed together.
Upon thorough consideration of the reply and submissions provided by the assessee, it has been noted that the appellant firm is duly registered with NSEZ Noida and qualifies for deduction under section 10AA of the Income Tax Act, 1961. Additionally, the assessee has timely filed 6 I.T.A.Nos.2777 & 2769/Del/2024 Form 56F vide Acknowledgement no 316144901300918 and 29C before the due date of the return filing for Assessment Year 2018-2019 i.e., 30.09.2018. Appellant has declared total income of Rs.3,05,31,560/- after claiming the above referred deduction only. Furthermore, the claim for deduction under section 10AA was appropriately made in the return of income. It's worth mentioning that the assessee has been consistently claiming this deduction in previous years as well and AY 2018-19 is 8th year of deduction.
The disallowance of the deduction claimed under section 10AA of the Act arose due to a technical glitch/inadvertently the deduction could not be filled in the appropriate column of computation of Income. But the total income has been computing by allowing claimed deduction only. Upon reviewing the submissions made by the appellant and examining the data available on the system, the prima facie of the appellant's case is found to be acceptable. Consequently, the appeal on this ground is allowed."
6. On going through the order of the Ld. Addl./JCIT(Appeals), we do not see any valid reason to interfere with the findings given for allowing the claim of deduction u/s 10AA of the Act to the assessee which was otherwise denied due to technical glitch in e-filing the return. We sustain the order of the Ld. Addl./JCIT(Appeals) and reject the grounds raised by the Revenue.
7. In the result, appeals of the Revenue are dismissed.
Order pronounced in the open court on 31/12/2024 Sd/- Sd/-
(BRAJESH KUMAR SINGH) (C.N. PRASAD)
ACCOUNTANT MEMBER JUDICIAL MEMBER
7
I.T.A.Nos.2777 & 2769/Del/2024
Dated: 31/12/2024
*Kavita Arora, Sr. P.S.
Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT.
By order Assistant Registrar, ITAT: Delhi Benches-Delhi 8