2023 (4) TMI 934 - AT - Income Tax

Deduction u/s 80-IA(4) denied - return of income was filed beyond due date prescribed u/s 139(1) - return of income so filed was late by one minute - HELD THAT - We note that in the assessee s case, there is a delay in filling the return of income by one minute only. The Co-ordinate Bench of ITAT, Surat 2022 (5) TMI 1536 - ITAT SURAT on the similar and identical facts, has condoned the delay in filling the appeal for eleven minutes, vide order of Co-ordinate Bench in the case of M/s. Veekay Rayon. We note that delay of one minute in filing of the return was due to technical snags in the website of department, and therefore return could not be uploaded. There is only a negligible delay (one minute only) which is due to bonafide reasons as has explained above, therefore, delay in Filling return of income is hereby condoned. We direct the AO to examine the eligibility of the claim of the assessee and terms and conditions under section 80IA of the Act - Decided in favour of assessee.

Summary

Issues:
1. Disallowance of deduction claimed under section 80-IA(4) of the Income Tax Act due to late filing of return by one minute.
2. Appeal against the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC).

Issue 1: Disallowance of deduction under section 80-IA(4) due to late filing:
The appeal pertained to the Assessment Year 2018-19 where the assessee, a Private Limited Company, filed its return of income claiming a deduction under section 80-IA(4) for infrastructure development. The return was filed one minute late, leading to the disallowance of the deduction by the Assessing Officer. The assessee contended that the delay was due to technical issues with the department's website, requesting the deduction to be allowed. The Co-ordinate Bench of ITAT, Surat, had previously condoned a similar delay of eleven minutes in another case. Citing this precedent, the ITAT Surat allowed the appeal, condoning the one-minute delay and directing the Assessing Officer to verify the eligibility of the claim under section 80-IA(4) and allow the deduction accordingly.

Issue 2: Appeal against the order of the Learned Commissioner of Income Tax (Appeals), NFAC:
The assessee appealed against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, which upheld the disallowance of the deduction made by the Assessing Officer. The ITAT Surat, after considering the submissions of both parties and the legal precedents, found that the delay in filing the return was due to technical issues with the department's website. Relying on previous decisions, including one by the Hon'ble Madras High Court, the ITAT Surat affirmed the order of the Learned Commissioner of Income Tax (Appeals) and allowed the appeal of the assessee, directing the Assessing Officer to grant the deduction under section 80-IA(4) after verification of eligibility.

In conclusion, the ITAT Surat allowed the appeal of the assessee, condoning the delay in filing the return by one minute and directing the Assessing Officer to allow the deduction under section 80-IA(4) after due verification. The judgment emphasized the importance of considering technical issues that may cause delays in filing returns and highlighted the need for a bonafide approach in such cases.