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TMI Blog2021 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... ent years 2015-16 to 2019-20 wherein it refers to filing of tax returns electronically without digital signature and ITR- V Form to be send to the CPC, Bengaluru whereas for the assessment year under consideration i.e., 2008-09, duly verified ITR-V Form was required to be sent by the eligible person to the AO. No discrimination could be made between the asessee, if such ITR-V Form are required to be submitted by the Assessing Officer or before the CPC in relaxing the time prescribed in sub-paragraph[2] of the paragraph 3 of the Notification dated 27.07.2007. The view of the Department is hyper-technical for the reason that the e-filed return data indeed was transmitted on the date of such return filed electronically to the server designated by the e-Return Administrator which necessarily contains the data of the claim made by the assessee for carry forward of losses. ITR-V is verification Form which would be construed as Annexure of statement to be made to the e-filed return of income. Time relaxation is permitted by the CBDT for verification of such returns either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru through speed post. Merely for the reason that IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue under Section 260A of the Income Tax Act, 1961 [ Act for short] challenging the order of the Income Tax Appellate Tribunal A Bench, Bengaluru [ Tribunal for short] in ITA No.914/Bang/2016 relating to the assessment year 2008-09. 2. This appeal was admitted by this Court to consider the following substantial question of law: Whether on the facts and circumstances of the case, the Tribunal is right in law in allowing the appeal of the assessee by holding that though ITR-V was filed belated but on 31.03.2009, the return of income was filed well before the due date of filing of return of income under Section 139[1] of the Act and mere delay in submitting the ITR-V does not make the return invalid for denying carry forward of losses in future years? 3. The assessee company has e-filed the return of income for the assessment year under consideration on 30.09.2008 and has filed the ITR-V Form on 31.03.2009. The case of the assessee was selected for scrutiny and assessment order under Section 143[3] of the Act was passed by the Assessing Officer on 21.12.2010 placing reliance on the CBDT Notification No.SO 1281[E] dated 27.07.2007 denying the carry forward l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter in the light of the judgment of the Hon ble High Court of Bombay and considered the non- issuance of the defective notice under Section 139[9] of the Act also, thereby proceeded to set aside the order of the Commissioner of Income Tax [Appeals] to consider the claim of carry forward of losses as sought by the assessee-respondent. Accordingly, seeks to answer the substantial question of law in favour of the assessee and against the Revenue. 7. We have given our thoughtful consideration to the rival submissions made by the learned counsel for the parties and perused the material on record. 8. Section 80 of the Act deals with the submission of return for losses. In terms of the said provision, no loss which has not been determined in pursuance of a return filed in accordance with the provisions of Sub-section [3] of Section 139 shall be carried forward. Section 139 deals with the return of income. Section 139[1] reads thus: 139. (1) Every person,- (a) being a company or a firm; or (b) being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer has come to the conclusion that the date of filing of the return as 31.03.2009 i.e., the date of filing of the ITR-V return by the assessee. Based on this Sub- Clause[2] of the Notification dated 27.07.2007, the assessment proceedings under Section 143[3] of the Act were concluded denying the claim of the assessee for carry forward of losses with reference to Section 139[3]. It is not in dispute that the CBDT having considered the earlier system of e-Filing in tax returns which were to be filed electronically without a digital signature, the taxpayer has to take print out of ITR-V Form and send it to Centralized Processing Centre [CPC], Bengaluru within 120 days of transmitting the data electronically relating to the assessment years 2009-10 to 2014-15 and such assessments which are pending due to non- filing of ITR-V Form, has issued the Circular No.13/2016. In paragraph No.2 of the said Circular, it is stated that in spite of granting relaxation of time for submitting ITR-V Form on various occasions, it has been noticed that a large number of such electronically filed returns still remain pending with the Income-tax Department for want of receipt of a valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -V does not make the return submitted on 30.09.2008 [e-filed return] invalid for denying the carry forward of losses in future years. 12. The Hon ble High Court of Bombay in the case of Crawford Bayley Co., supra, while considering the issue of non-receipt of Form ITR-V by the Department, though the department has made the provision of electronic filing of returns, Form ITR-V containing the due verification was required to be remitted by an ordinary post, held that treating e-return filed by the assessee well within the period of limitation cannot be treated as a invalid return and the same has serious consequences. Reference has been made to sub- Section [9] of 139 wherein adequate provisions for the Assessing Officer has been made to furnish in the first instance a notice granting a period of fifteen days to rectify the defect in the return, a provision made for extension of the period within which the defects are to be rectified has also been considered. It has been observed thus: 8. Though the Income Tax Department made a provision for electronic filing of returns, it appears that the ITR-V Form containing the due verification of the return of the assessee was req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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