2017 (8) TMI 230 - AT - Income Tax

Eligibility to deduction u/s 80IA - belated return filed - whether return so uploaded by 20 seconds late by the Income-tax Department will be treated as valid return to have been filed on 30.09.2012, when the facts on record are that the assessee has filed E-return on 30.09.2012 and digital signature was also put on 30.09.2012? - Held that - The claim of the assessee cannot be denied on the basis of technicalities when the assessee is otherwise entitled to deduction. Accordingly, under the facts and circumstances of the present case, as decided hereinabove, the return filed by the assessee is treated to have been filed in time and claim of the assessee is directed to be allowed. Grounds raised by the assessee are allowed.

Summary

Issues:
1. Validity of the date of filing the return for claiming deduction u/s 80IA.
2. Disallowance of deduction u/s 80IA by AO and confirmation by CIT(A).

Issue 1: Validity of the date of filing the return for claiming deduction u/s 80IA

The appellant contended that the return was uploaded on 30.09.2012 at 11.55 P.M. but was shown as filed on 01.10.2012 on the e-filing portal. The appellant argued that a 20-second delay in uploading was due to technical reasons and should not affect the validity of the return. The AO disallowed the deduction u/s 80IA based on the filing date shown by the DIT(Systems) as 01.10.2012. The CIT(A) upheld this decision, stating the return was filed after the due date. However, the ITAT Delhi held that the return was filed on time, as digitally signed on 30.09.2012, and a 20-second delay due to technical issues should not penalize the assessee. The ITAT relied on a similar ITAT Bangalore decision and allowed the deduction, emphasizing that technicalities should not override the assessee's entitlement to the deduction.

Issue 2: Disallowance of deduction u/s 80IA by AO and confirmation by CIT(A)

The AO disallowed the deduction u/s 80IA amounting to ?34,34,128/- as the return was filed after the due date as per DIT(Systems)'s confirmation. The CIT(A) affirmed this disallowance. However, the ITAT Delhi overruled this decision, emphasizing that the return was filed on time and the 20-second delay should not impact the assessee's entitlement to the deduction. The ITAT held that technicalities should not override the statutory entitlement of the assessee to claim the deduction u/s 80IA. Consequently, the ITAT allowed the appeal of the assessee, directing the allowance of the claimed deduction.

In conclusion, the ITAT Delhi ruled in favor of the appellant, allowing the appeal and directing the allowance of the deduction u/s 80IA. The judgment highlighted the importance of considering the actual filing date and technical delays in e-filing processes while determining the validity of deductions claimed by taxpayers.