INCOME TAX OFFICER, BODHI TOWER vs. KUMAR BUILDERS PROJECT PUNE PRIVATE LIMITED, BUND GARDEN

Facts

The assessee, a private limited company, filed its original return of income for AY 2019-20 on 31.10.2019. The return was uploaded before midnight but processed with a 2-second delay due to technical glitches, resulting in an acknowledgment date of 01.11.2019. The CPC treated this as a belated return filed under Section 139(4), disallowing the claim for carry forward of business loss. The CIT(A) however, held the return was filed in time and allowed the benefit of carry forward of loss.

Held

The Tribunal held that a delay of a few seconds due to technical glitches in uploading the return, especially when the upload was initiated before the due date, should not lead to the disallowance of carry forward of losses. The tribunal relied on various judicial pronouncements that advocate for a justice-oriented approach in such cases.

Key Issues

Whether a return of income uploaded before the due date but acknowledged with a minor delay of a few seconds due to technical glitches can be considered belated, thereby disallowing the claim for carry forward of losses?