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2012 (6) TMI 40 - AT - Income TaxDeduction u/s 80IC - denial u/s 80AC on ground of delay in filing return - assessee contended that delay was for the reason beyond the control of the assessee - Held that - In this case admittedly, assessee filed belated return of income on 23.12.2008. Assessee submitted that its computer got corrupted due to viruses and in spite of continuous efforts by the computer technical personnel to retrieve the data in time for filing the return of income, problem persisted in the system. The entire data for the two months period, February and March, 2008, had to be re-entered into the computer system again. On preparation of the final accounts and finalising of statutory audit it took a little extra time that resulted in belated filing of return of income. Thus there was a delay of 74 days in filing the return of income which is beyond the control of assessee. This was also confirmed by the statutory auditor vide his letter dated 20.3.2011. Being so, in our opinion there is a reasonable cause for filing the return of income belatedly and this is beyond the control of the assessee. When the substantial question of justice involved technicalities should be ignored. Claim of the assessee cannot be denied on technicalities when the assessee is legally otherwise entitled for deduction - Decided in favor of assessee.
Issues:
1. Disallowance of deduction claimed under section 80IC for assessment year 2008-09. 2. Allowance of additional evidence without giving a reasonable opportunity to the Assessing Officer. 3. Interpretation of provisions of section 80AC regarding disallowance of deductions under sections 80IA to 80IE. 4. Justification of delay in filing the return of income by the assessee. 5. Application of case laws to support the reasons for delay in filing the return. Analysis: Issue 1: Disallowance of deduction claimed under section 80IC The Revenue appealed against the CIT(A)'s order disallowing the deduction claimed under section 80IC for the assessment year 2008-09. The Assessing Officer disallowed the deduction as the return was filed belatedly. The assessee provided reasons for the delay, citing technical problems with the computer system. The Tribunal considered the reasons valid, as they were beyond the assessee's control. The delay was supported by the statutory auditor's confirmation. The Tribunal held that there was a reasonable cause for the delay and dismissed the Revenue's appeal. Issue 2: Allowance of additional evidence The Revenue contended that the CIT(A) erred in allowing additional evidence without providing a reasonable opportunity to the Assessing Officer. The Tribunal did not find merit in this argument, as the reasons for delay were adequately explained by the assessee, and the evidence provided was deemed sufficient to support the claim. Issue 3: Interpretation of section 80AC provisions The Revenue argued that the provisions of section 80AC disallowed deductions if the return was not filed on time. The Tribunal examined the section and concluded that the assessee's return was filed within the allowed time. Therefore, the provisions of section 80AC were deemed inapplicable in this case. Issue 4: Justification of delay in filing return The assessee justified the delay in filing the return due to technical issues with the computer system, leading to data loss and re-entry. The Tribunal accepted this explanation as a reasonable cause beyond the assessee's control. The Tribunal emphasized that technicalities should not override substantial justice. Issue 5: Application of case laws The assessee cited various case laws to support the reasons for the delay in filing the return. These cases emphasized that time limits should not be punitive and genuine hardships should be considered. The Tribunal found these cases relevant and supported the assessee's claim for deduction under section 80IC. In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the CIT(A)'s decision in favor of the assessee regarding the deduction claimed under section 80IC for the assessment year 2008-09.
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