9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 558 - AT - Income TaxDeduction u/s 80IB - denial of claim on account of genuine delay due to error on the website for filing of the return of income - due to error on website, return could be filed next day - Held that - As assessee has filed screen shot of error in E-filing registration with the Centralized Processing Centre, Bangalore wherein the return of income was refused acceptance for the reason your Date of Birth does not match with the data you entered it means that assessee genuinely tried to file the return of income within the due date of filing u/s 139(1) of the Act i.e. by 15-10-2010 but could not file. Genuinely, the assessee filed the return of income with Centralized Processing Centre, Bangalore only on 16-10-2010 by 11AM. Accordingly, I allow the claim of the assessee and this issue of the assessee s appeal is allowed.
Issues:
- Deduction under section 80IB disallowed due to delay in filing return of income caused by error on the website. Analysis: The case involves an appeal by the assessee against the order of CIT(A) confirming the AO's decision to disallow deduction under section 80IB of the Income Tax Act due to a delay in filing the return of income caused by an error on the website. The assessee, a Partnership Firm engaged in property redevelopment, faced a delay in filing the return for A.Y. 2010-11 due to heavy pressure on the computer server of the Centralized Processing Center, resulting in the inability to upload the return on the due date. The Chartered Accountant tried to rectify the error but faced technical difficulties obtaining necessary information. The delay was not deliberate but due to exceptional circumstances beyond the assessee's control. The CIT(A) upheld the AO's decision, citing lack of vigilance on the assessee's part and failure to provide a valid explanation for the delay. The CIT(A) emphasized that the appellant did not make efforts to seek condonation of delay as per relevant provisions. The appellant's turnover exceeding the limit for Tax Audit made electronic filing mandatory, leading to the delay. Despite the Chartered Accountant's efforts, the return could not be filed on time due to technical issues. The CIT(A) concluded that the delay was a result of "Culpable Negligence" on the appellant's part, as no genuine hardships preventing timely filing were proven. The lack of diligence in providing necessary details for filing online and obtaining correct information led to the dismissal of the appeal. However, upon review, the ITAT Mumbai found that the assessee genuinely attempted to file the return within the due date but faced technical issues resulting in a delay of one day. The screen shot of the error in E-filing registration supported the genuineness of the assessee's efforts. Consequently, the ITAT allowed the claim of the assessee, overturning the decision of the CIT(A) and AO, and allowed the deduction under section 80IB. The appeal of the assessee was thus allowed, emphasizing the genuine attempt to comply with the filing requirements within the stipulated time frame. In conclusion, the ITAT Mumbai's judgment highlights the importance of genuine efforts to comply with filing requirements, acknowledging technical difficulties beyond the assessee's control. The decision underscores the need for diligence in providing accurate information for timely filing and condonation of delays caused by exceptional circumstances.
|
