2024 (8) TMI 1299 - AT - Income Tax

Deduction u/s 80IA - delay in filing of form 10CCB - Income Tax portal glitch - statutory Form 10CCB which was to be filed on or before 31.10.2022 was actually filed at 01 22 AM on 01.11.2022 - CIT(A) allowed deduction as it was due to technical glitches that are claimed to have prevailed in the Income Tax portal on the night of 31.10.2022 at the time of filing of Form 10CCB relying only upon the statement provided by the assessee in Form 35 HELD THAT - Delay involved in the present case for 1 Hour 22 Minutes caused even after continuous efforts of the assessee to upload the Form on the web portal of the income tax department, it cannot be construed that there was some discrepancies or failure on the part of the assessee, therefore, we are of the considered view that the Form 10CCB filed by the assessee shall be treated as filed within the prescribed time with no delay. It is pertinent to mention that the prescribed Form was filed and available before the Ld. AO(CPC) when the return of the assessee was processed u/s 143(1) of the Act, the department was very much in possession of Form 10CCB while the intimation was issued. Since, it is decided that delay in filing of Form 10CCB in present case was occasioned due to technical issues on the portal of income tax department for which the assessee cannot be held liable, therefore, the case laws relied upon by the revenue qua implementation of exemption notifications is irrelevant. CBDT s Circular 9/2015 regarding delay in filing refund claim and claim for carry forward losses u/s 119(2)(b) is also of no help as the delay was caused because of malfunction in the income tax website. As prescribed form was filed only with a delay of 1 Hour 22 Minutes also much before the due date of filing of the return. we hold that the assessee has substantiated that the Form 10CCB was attempted to be filed within the stipulated time, however, due to the reasons beyond control of the assessee i.e., technical glitches on the web portal of the department, the Form could not be filed in time but was uploaded with a slight delay of 1 Hour 22 Minute. As the delay was not attributed or occurred due to any negligence or inaction on the part of assessee, therefore, in the interest of justice also the assessee shall not be saddled with any penal action. Decided in favour of assessee.

Summary

Issues Involved:
1. Justification of deduction u/s 80IA due to delay in filing Form 10CCB.
2. Technical glitches on the Income Tax portal.
3. Applicability of CBDT circular extending the due date for filing Tax Audit report.
4. Authority of Addl./JCIT(A) to condone the delay.
5. Impact of slight delay (1 hour and 22 minutes) on condonation policy.
6. Interpretation of exemption notifications as per apex court's principles.

Issue-wise Detailed Analysis:

1. Justification of Deduction u/s 80IA Due to Delay in Filing Form 10CCB:
The department challenged the allowance of deduction u/s 80IA amounting to Rs. 31,92,60,329/- by the Addl./JCIT(A), arguing that the delay in filing Form 10CCB should not have been condoned. The Addl./JCIT(A) condoned the delay of 1 hour and 22 minutes, attributing it to technical glitches on the Income Tax portal on the night of 31.10.2022. The tribunal upheld the Addl./JCIT(A)'s decision, emphasizing that the delay was minimal and due to technical issues beyond the assessee's control.

2. Technical Glitches on the Income Tax Portal:
The assessee claimed that the delay in filing Form 10CCB was due to technical glitches on the Income Tax portal. The tribunal accepted this explanation, supported by screenshots showing multiple attempts to upload the form. The tribunal noted that the CBDT had extended the due date for filing the Tax Audit report due to similar technical issues, reinforcing the validity of the assessee's claim.

3. Applicability of CBDT Circular Extending the Due Date for Filing Tax Audit Report:
The department argued that the CBDT circular extending the due date for filing the Tax Audit report to 7th November 2022 did not apply to the assessee's case. However, the tribunal found that the technical glitches affecting the portal justified the extension and supported the assessee's claim of a genuine attempt to comply within the original deadline.

4. Authority of Addl./JCIT(A) to Condon the Delay:
The department contended that the Addl./JCIT(A) lacked the authority to condone the delay under section 119(2)(b) as per CBDT Circular 9/2015. The tribunal disagreed, stating that the delay was due to technical issues on the Income Tax portal, thus falling outside the scope of the circular. The tribunal emphasized a justice-oriented approach, aligning with precedents where minor delays due to technical glitches were condoned.

5. Impact of Slight Delay (1 Hour and 22 Minutes) on Condonation Policy:
The department argued that there was no settled SOP/policy for condoning slight delays, leading to complications and arbitrariness. The tribunal, however, highlighted precedents where minor delays were condoned due to technical issues, emphasizing a non-pedantic, justice-oriented approach. The tribunal referenced multiple case laws supporting the view that procedural requirements should not result in undue hardship if genuine attempts to comply were made.

6. Interpretation of Exemption Notifications as per Apex Court's Principles:
The department cited the apex court's ruling in Commissioner of Customs (Import), Mumbai v. Dilip Kumar & Company, arguing for strict interpretation of exemption notifications. The tribunal distinguished the present case, noting that the delay was minimal and due to technical glitches, and thus, a strict interpretation was not warranted. The tribunal upheld the Addl./JCIT(A)'s decision, emphasizing the need for a balanced approach in cases of minor procedural delays.

Conclusion:
The tribunal dismissed the department's appeal, upholding the Addl./JCIT(A)'s decision to condone the delay in filing Form 10CCB and allowing the deduction u/s 80IA. The tribunal emphasized a justice-oriented approach, considering the technical glitches on the Income Tax portal and the minimal delay involved. The decision was aligned with precedents supporting the condonation of minor delays due to genuine technical issues.