2013 (11) TMI 1731 - AT - Income Tax

Assessee claiming deduction u/s 80IC - AO disallowed u/s 80AC - Delay of one day due to technical reasons - Return filed on 01-10-2009 , Due date for filing was 30-09-2009 - HELD THAT- The delay is not because of any lapse on the part of assessee but due to technical reasons in uploading the return electronically and due to delay of few hours in getting connectivity. The Courts have held that due date for furnishing return of income as per section 139(1) is subject to extended period provided u/s 139(4). Also, in a similar case, the ITAT condoned the delay of 74 days in filing of the return and permitted the assessee to avail deduction u/s. 80IC in 2012 (6) TMI 40 - ITAT HYDERABAD . Decided in favor of assessee.

Summary

Issues involved: Appeal by Revenue against order of CIT(A)-VI, Hyderabad regarding allowance claim u/s 80IC.

Summary:
The appeal was filed by Revenue against the order of CIT(A)-VI, Hyderabad dated 21-08-2012, concerning the allowance claim u/s 80IC. The Assessee filed a return of income claiming deduction of &8377; 4,06,98,440/- u/s 80IC, with a delay of one day due to technical reasons in uploading the e-return. The AO denied the deduction invoking section 80AC of the IT Act, stating that the return should have been filed before the due date specified u/s 139(1).

Before the CIT(A), Assessee argued that the delay was technical and should not lead to disallowance of the claim. CIT(A) allowed the claim, considering the Assessee's genuine reasons for the delay and the precedent set by ITAT in similar cases. The delay was attributed to extensive data entry required for e-filing, and it was held that Assessee was eligible for deduction u/s 80IC.

The Tribunal upheld CIT(A)'s decision, stating that the delay was due to technical reasons and could be condoned. It was noted that the due date for filing the return of income as per section 139(1) is subject to the extended period provided u/s 139(4). Referring to a previous case involving the same Assessee, the Tribunal dismissed Revenue's appeal, as the delay was deemed justifiable and the Assessee was found eligible for the deduction u/s 80IC.

In conclusion, the Tribunal dismissed the appeal of Revenue, emphasizing that the delay in filing the return was due to technical reasons and should be condoned. The decision was based on the interpretation of relevant sections and the precedent set by previous cases involving the same Assessee.