Question ID : 40485

Deduction u/s 10AA

Deduction u/s 10AA was disallowed by AO on the contention that ROI is filed after due date. But nowhere in the section there is a mention of such condition for claiming 10AA deduction. However in sec 143(1)(v), it is mentioned the ROI shall be processed after disallowing 10AA deduction, if the ROI is filed beyond due date prescribed in 139(1). In these circumstances, whether any appeal can be filed, what are the chances of success. Can we make the contention that the eligibility conditions prescribed in 10AA do not include the condition that ROI filing should be within the due date and the assessee is not bound by the ROI processing directions as stipulated in sec 143(1). Thank you for your guidance.

If 10AA is prima facie not applicable then the 143(1) action can be justified. If not file appeal