2022 (11) TMI 773 - AT - Income Tax

Deduction u/s 80IA - denial of deduction as assessee has not filed the return of income, on time, as per the time limit prescribed u/s 139(1) - As argued assessee was prevented by reasonable and sufficient cause for not filing the return of income before due date and there is minor delay of only 26 days - HELD THAT - We have gone through the order of ld CIT(A) and explanation provided by the ld Counsel and noted that there is minor delay of 26 days, in filing of return of income. The ld CIT(A) relied on the judgment of M/s Unitech Ltd 2015 (10) TMI 950 - DELHI HIGH COURT and M/s Anand Shelter developers and builders Pvt. Ltd 2017 (10) TMI 1285 - ITAT PUNE and held that where divergent views are available and there is no direct decision of the Hon'ble Jurisdictional High Court, the view in favour of assessee has to be followed. Thus, we do not find any infirmity in the order of ld CIT(A). The conclusions arrived at by the CIT(A) are, therefore, correct and admit no interference by us. We, approve and confirm the order of the CIT(A) and dismiss the appeal of the Revenue.

Summary

Issues Involved:
1. Disallowance of deduction claimed under section 80IA of the Income Tax Act due to late filing of return.
2. Validity of reopening the assessment under section 147 of the Income Tax Act.

Analysis:

Issue 1: Disallowance of deduction claimed under section 80IA:
The appeal filed by the Revenue and the Cross Objection filed by the Assessee revolve around the disallowance made by the Assessing Officer of Rs.18,93,63,796/- on account of deduction claimed under section 80IA of the Income Tax Act. The Assessee, a private limited company, filed its return of income for A.Y. 2012-13 after the specified due date under section 139(1) of the Act. The Assessing Officer disallowed the deduction citing section 80AC of the Act, which rendered the Assessee ineligible for the deduction. The Assessee contended that the late filing should not bar the deduction, citing various judicial pronouncements. The ld. CIT(A) allowed the deduction under section 80IA, considering divergent views and the absence of a direct decision of the Jurisdictional High Court. The Revenue appealed, arguing that the late filing disentitles the Assessee from claiming the deduction.

Issue 2: Validity of reopening the assessment under section 147:
The Assessee raised Cross Objections challenging the reopening of the assessment under section 147 of the Income Tax Act. The Assessee contended that the Assessing Officer erred in reopening the assessment and passing the reassessment order. However, since the appeal of the Revenue was dismissed, the Cross Objection became infructuous, and the Tribunal did not adjudicate on this issue.

In conclusion, the Tribunal upheld the order of the ld. CIT(A) regarding the allowance of deduction under section 80IA, emphasizing the minor delay in filing the return and the absence of a direct decision of the Jurisdictional High Court. The Tribunal dismissed the appeal of the Revenue and the Cross Objection filed by the Assessee, directing the placement of the order in all relevant case files.