2018 (9) TMI 1085 - AT - Income Tax

Validity of revised return - delay in filing ROI - return filed on the next working day as the last date of filing of return happens to be a holiday - Held that - Last date of filing of the return as per section 139(1) of the Act was 30.09.2012 and that was a holiday being Sunday. The return was filed on 01.10.2012, the next working day i.e., Monday. It is also an undisputed fact that it was made compulsory for the assessee for the first time to file the return online and for online filing there was no barrier of any holidays. It can be uploaded at any point of time. It is a settled position of law through various judicial pronouncements and section 10 of General Clauses Act and also by Board s Circular that if the last day of filing of return happens to be a holiday, the return can be filed on next working day. In the instant case, undisputedly, the return was filed on the next working day on 01.10.2012 as the last day of filing of return happens to be a holiday i.e., Sunday. In the absence of clear notification by the Board or the Government, the public cannot be held to be responsible for the delay in filing of the return on income if it is filed on the next working day as the last date of filing of the return was a holiday. Under these circumstances, we are of the considered opinion that the return filed on the next working day if the last date of filing of return happens to be a holiday, would be a valid return. Disallowance of other expenditures are concerned, we find that AO, without pointing out any specific defects in the maintenance of books of accounts, has made ad-hoc addition of ₹ 20,00,000/- for want of supporting vouchers. Whereas the assessee has produced the vouchers of various expenditures incurred by the assessee during the course of hearing before the CIT(A). The CIT(A) has examined the issue in the light of business of the assessee and the nature of expenditure incurred by it and keeping in view the totality of the facts he restricted additions to the extent of ₹ 1,00,000/-. During the course of hearing, the learned DR did not point out specific expenditures which requires proper verification by the AO.Since the CIT(A) has properly examined the issue in the light of evidences placed before him, we find no infirmity in his order. We accordingly confirm the order of the CIT(A) in this regard. - Decided against revenue

Summary

Issues:
1. Validity of revised return of income filed belatedly.
2. Allowance of expenditure made in cash without proper supporting documents.
3. Filing of return online and treatment of return filed on a holiday.

Analysis:
1. The first issue revolves around the validity of the revised return of income filed after the original return was considered belated. The CIT(A) relied on Board's Circular No.639 and the Tribunal's decision in a similar case to hold the revised return as valid, deleting the addition made by the AO regarding depreciation claimed. The Tribunal affirmed this decision, emphasizing that the return was filed within the time specified under section 139(1) of the Act, making the revised return valid.

2. The second issue concerns the allowance of expenditure made in cash without proper supporting documents. The AO made an ad-hoc addition for lack of vouchers, but the CIT(A) limited the addition after examining the nature of the expenses and the evidence provided by the assessee. The Tribunal upheld the CIT(A)'s decision, noting that the CIT(A) properly evaluated the evidence and justified the limited addition.

3. The final issue involves the filing of the return online and the treatment of the return filed on a holiday. The Tribunal acknowledged that while online filing allows flexibility regardless of holidays, there was no clear notification regarding extension of deadlines for online filing in case of holidays. Relying on legal precedents and the General Clauses Act, the Tribunal held that the return filed on the next working day after a holiday should be considered valid. Consequently, the Tribunal confirmed the validity of the return filed on the next working day and the allowance of the revised return filed within the specified period, dismissing the Revenue's appeal.