2023 (6) TMI 1137 - HC - Income Tax

Return uploaded with a delay of 21 seconds - Condonation of delay in filing of ITR - HELD THAT - Undoubtedly, the petitioner ought not to have undertaken the exercise of filing of the return literally at the last second, but in our considered view, the 21 seconds delay could be considered to be a human error and condoned, bearing in mind the dictates of substantial justice. Even as per the affidavit filed in support of the Writ Petition, the return had been filed only at 11.59 p.m. on 15.02.2021. The petitioner, being a company, ought to have ensured that the filing of return was sufficiently in time factoring in possible glitches or technical difficulties. The defence is that there is nothing wrong in the rejection of the return, since the software is so programmed to automatically close the portal at midnight. This may well be right. The request for condonation has been considered not by a machine but a human being, who, in my view, could well have considered the request in proper perspective, condoning the delay of 21 seconds. The impugned orders are set aside and the delay is condoned. The return of the petitioner for assessment year 2020-2021 shall be taken to have been filed in time with all consequences thereof.

Summary

Issues involved:
The petitioner challenged the order passed by the Principal Commissioner under Section 119(2)(b) of the Income Tax Act, 1961 and subsequent rejection of representation regarding the delay in filing return of income for assessment year 2020-2021.

Summary:
The petitioner, a company, filed a return of income for AY 2020-2021 with a delay of 21 seconds past the deadline. The delay led to disallowance of deduction under Section 80IA, resulting in a demand. The petitioner sought condonation of the delay, which was initially rejected by the respondent, citing a typographical error in the date. The High Court, considering the minimal delay and the principle of substantial justice, condoned the delay, setting aside the impugned orders and allowing the writ petition without costs.

Details for each issue:
1. The petitioner filed the return of income for AY 2020-2021 with a delay of 21 seconds past the deadline, leading to disallowance of deduction under Section 80IA and a subsequent demand.

2. The respondent rejected the petitioner's request for condonation of the delay, citing a typographical error in the date of filing, which necessitated the petitioner to approach the respondent with a rectification petition, also subsequently dismissed.

3. The High Court noted that while the rejection of the deduction under Section 80IA due to the delay was justified, the quantum of delay being only 21 seconds could be considered a human error and thus condoned in the interest of substantial justice.

4. The Court emphasized that although the software automatically closed the portal at midnight, the request for condonation should have been considered by a human being, who could have viewed the delay in filing the return with leniency.

5. Consequently, the High Court set aside the impugned orders, condoning the delay of 21 seconds and directing that the return for AY 2020-2021 be considered as filed in time, with the petitioner instructed to ensure timely statutory compliances in the future.