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1.3 Deduction u/s 80JJAA relates to employment of new employees in Factories and was introduced to incentivize the employment in the country. As per the provisions of section 80JJAA applicable in this year, an assessee was entitled to deduction of 30% of eligible amount in 3 assessment years including the eligible year. To claim the deduction, sub section (2) of section 80JJAA prescribed certain conditions both in respect of substantive and procedural compliances. Towards procedural compliance, a report of the accountant in prescribed Form 10DA was required to be furnished alongwith the return of income.

1.4 Before the Ld. CIT(A), in support of its claim of deduction u/s 80JJAA of Rs.35,78,377, the Appellant, along with an application under Rule 46A filed ITA nos. 8136/Del/2018 & 2296/Del/2017 the report of accountant certifying the amount of eligible deduction in prescribed Form10DA dated 27.3.2015. Detail of such Form 10DA in respect of different factories of the assessee and the working of eligible amount in this year is given hereunder:

S. No Factory Address Total eligible Amount eligible Amount in AY 2011-12[ 30% of total amount]

Justification of Appellant's claim

3. The ground regarding claim of deduction u/s 80JJAA was duly taken in Appeal before the Ld. CIT(A). During the course of hearing, copy of prescribed Form 10DA were also filed alongwith application under Rule 46A wherein the Appellant duly explained the reasons for its failure to make the subject claim in the return of income. [Refer PB Pages 37 to 53] 3.1 Regarding reasons why the claim of deduction could not be claimed in the return of income, as also mentioned in the application filed under Rule 46A and submitted before the Ld. CIT(A), it is submitted that the Appellant was not informed of its eligibility of deduction u/s 80JJAA. While preparing the details and information during the course of assessment proceedings particularly in respect of salary and wages, it was noticed that the assessee may be eligible for deduction u/s 80JJAA. Accordingly, the Appellant ITA nos. 8136/Del/2018 & 2296/Del/2017 approached their Accountants to verify its claim u/s 80JJAA and if eligible to provide the prescribed Accountant's certificate in Form 10DA as required under section 80JJAA(2)(c) of the Act. Based on details provided by the Appellant and verification of the same, requisite certificates in prescribed Form 10DA were issued by the Accountant only on 27.03.2015. However, by that time, the Ld. AO had passed the assessment order on 03.03.2015. As such, it is submitted that the Appellant was prevented by sufficient cause in not claiming the subject deduction in the return as well as during assessment proceedings.

4.2 Regarding various conditions required to be fulfilled for claiming the deduction, it is submitted that the prescribed certificates in Form 10DA are issued by the Accountant based on and after verification of requisite conditions required to be fulfilled for claiming the deduction u/s 80JJAA. For verification of the same, if necessary, Ld. CIT(A) would have called for the remand report from the Ld. AO.

4.3 Regarding rejection of claim on the ground of non-filing of prescribed certificate of the Accountant with the return of income it is submitted that the said observations of the Ld. CIT(A) are against the doctrine of substantial compliance.