Income Tax Deduction u/s 10AA Cannot Be Denied for Delay in Filing Form 56F: Madras HC Dismisses Revenue's Appeal

The Madras High Court has ruled that an income tax deduction claimed under Section 10AA for units in Special Economic Zones (SEZs) cannot be denied merely because of a delay in filing the prescribed Form 56F. The court dismissed an appeal filed by the revenue department, holding that the filing of this form is a procedural requirement, not a mandatory condition for claiming the deduction. The High Court observed that as long as the assessee is substantively eligible for the deduction and has filed the form before the completion of the assessment, the benefit should not be disallowed. This judgment reinforces the legal principle that procedural lapses should not override substantive entitlements, especially when the delay does not cause any prejudice to the revenue. It provides significant relief to SEZ units, ensuring their tax benefits are not jeopardized by minor procedural delays.