MOONLIGHT STUDIO,NAGPUR vs. DY. COMMISSIONER OF INCOME TAX, CPC, BANGALORE

Date of Hearing – 28/01/2025 Date of Order – 05/02/2025

O R D E R PER K.M. ROY, A.M.

This appeal by the assessee is emanating from the impugned order dated 27/07/2023, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2016–17.

“(1) That the order of the learned DCIT, CPC, Bangalore passed u/s. 154 of Income-tax is bed in law and wrong on facts and the learned CIT(A) erred in confirming the same. The learned CIT(A) erred in deciding the issue although the application for condonation of delay in filing the return of income was already pending for adjudication before the Hon'ble Chief Commissioner of Income Tax, Nagpur. (2) That the learned CIT(A) erred in law and on facts in confirming the action of AO in making adjustment to the returned income merely through electronic processing The action of AO is beyond the jurisdiction as provided in the 2 Moonlight Studio ITA no.287/Nag./2023 provision of section 143(1)/154 of the Act and learned CIT(A) erred in sustaining the same. (3) That the learned CIT(A) erred in law and on facts in upholding the order passed by AO and in not allowing the business loss of Rs. 13,69,203/- and consequently not allowing carry forward. On the facts and circumstances of the case, the assessee was in the process of filing of the ITR and the minor delay of few minutes was only due to heavy rush and slow working of the government's website. The reasonable cause for delay is not considered by both the authorities. (4) That for any other ground with kind permission of your honour at the time of hearing of appeal.”

The factual matrix lies in a narrow compass. The assessee is a firm engaged in the business of trading in photographic items. Return of income was filed on 18/10/2016 declaring total loss of ` 16,25,177. The same consists of unabsorbed business loss of ` 13,69,203 and unabsorbed depreciation of ` 2,55,974. The due date of return was 17/10/2016. However, the assessee stated that due to heavy traffic on ITR e-filing site (incometaxindiaefiling. gov.in) and slow uploading, though the entire return was ready the same could not be uploaded before 12’o clock on 17/10/2016. The same was immediately uploaded after 12’o clock on same night but the date had changed to i.e., 18/10/2016. The assessee further stated that the return was processed and intimation under section 143(1) dated 26/10/2016 which was received by the assessee wherein the business loss of ` 13,69,203 was not carried forward. Subsequently, the assessee made an online rectification application to rectify the above mistake and get the carry forward of business loss of ` 13,69,203. The order under section 154 dated 22/09/2017 was passed wherein the business loss of ` 13,69,203 was not carried forward.