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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the deceased assessee represented by his legal heir against the order of the Learned Commissioner of Income Tax, Appeal, Addl/JCIT (A), Bangalore, order dated 19.04.2024 for AY 2019-20 [mistakenly shown in the impugned order as AY 2018-19].
2. At the outset, the Ld. Counsel for the assessee submitted that there is a delay of ‘28’ days in filing of this appeal and explained the reason for causing the delay, which we find to be reasonable and hence, we condone the delay of ‘28’ days in filing of appeal and proceed to adjudicate the appeal on merits.
The main grievance of the assessee is against the action of the Ld.CIT(A) denying the deduction u/s.80IA of the Income Tax Act, 1961 (hereinafter in short ‘the Act’).
The brief facts of the case are that the assessee had filed his return of income (RoI) declaring an income of Rs.88,49,781/- for AY 2019-20 on 18.09.2019 claiming deduction of Rs.59,49,423/- u/s.80IA of the Act.
1. The assessee is noted to have filed the requisite Form 10CCB on 19.08.2019 for claiming such a deduction. The CPC while processing the return u/s.143(1) of the Act denied the claim of deduction u/s.80IA of the Act and determined the taxable income at Rs.1,11,70,450/-. This was due to the fact that the CPC has considered the due date of filing of RoI as on 31.07.2019 instead of due date of 30.09.2019 applicable to the assessee who was eligible for deduction u/s.80IA of the Act. The Ld.CIT(A) also was of the opinion that the assessee has filed the RoI belatedly i.e. after the due date of filing of RoI.
Assailing the action of the Ld.CIT(A), the Ld.AR drew our attention to the CBDT order dated 27.09.2019, wherein, the CBDT has clearly stated that the due date for filing of return for AY 2019-20 is on 30.09.2019 since assessee’s stands covered under clause (a) of Explantion-2 to sub-section (1) of section 139 of the Act; and for convenience, the ibid CBDT order is reproduced as under:
F. No. 225/157/2019/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes *** North-Block, ITA-II Division New Delhi, the 27th September, 2019
Order under Section 119 of the Income-tax Act, 1961
The ‘due-date’ for filing income-tax returns for Assessment-Year 2019-20 is 30.09.2019 for assessees covered under clause(a) of Explanation 2 to sub-section(1) of section 139 of the Income-tax Act,1961(‘Act’). It has been represented that some of the taxpayers are facing difficulties in filing their reports of audit and income- tax returns due to various reasons including availability of limited time with tax professionals for completion of audits, floods in certain parts of the country etc.
On due consideration of representations from various stakeholders for extending the due date, being 30th September,2019 , for filing of income-tax returns and various reports of audit pertaining to assessment year 2019-20 for assessees’ covered under clause (a) of Explanation 2 to section 139(1) of the Act read with relevant provisions of the Act and Income-tax Rules, the Central Board of Direct Taxes, in exercise of its powers conferred under section 119 of the Act, hereby extends the ‘due-date’, for filing income-tax returns as well as all reports of audit (which are required to be filed by the said specified due date), from 30thSeptember, 2019 to 31st October, 2019 . However, there shall be no extension of the due date for purpose of Explanation 1 to section 234A (interest for defaults in furnishing return) of the Act and the assessee shall remain liable for payment of interest as per provisions of section 234A of the Act. Sd/- (Rajarajeswari R.) Under Secretary to the Government of India
The Ld.AR also pointed out that impugned order in its caption shows erroneously the AY as AY 2018-19 but it is undisputedly that of AY 2019- 20 [and that the assessee has moved rectification application before the First Appellate Authority]. The Ld.DR couldn’t contradict this relevant fact.
Therefore, we presume that the relevant AY before us in this case is that of AY 2019-20 and not AY 2018-19 as erroneously stated in the caption of the impugned order.
And as noted supra, the Ld.AR of the assessee brought to our notice that the Ld.CIT(A) has denied the claim of deduction u/s.80IA of the Act only on the ground that the assessee had filed RoI after the due date of filing return u/s.139 of the Act. According to the Ld.AR, Form 10CCB was filed by assessee on 19.08.2019, and the RoI was filed on 18.09.2019, and drew our attention to the copy of the Form 10CCB as well as the copy of the return filed by the assessee a copy of which is placed in PB. It was brought to our notice that for claiming deduction u/s.80IA of the Act audit of accounts as per provisions of Sec.80IA(7) of the Act was undertaken and Form 3CCB was also certified by the qualified Chartered Accountant.
According to him, once the accounts are subject to audit, the due date of filing the return stands extended to 31.10.2019 and thus, the RoI for the year has been filed in time considering the audit requirement of the assessee to claim deduction u/s.80IA(7) of the Act. The Ld.AR also drew our attention to the CBDT order F.No.225//157/2019/ITA-II dated 27.09.2019 passed u/s.119 of the Act (supra) explaining the due date for filing of Income Tax Return for AY 2019-20 as noted supra. According to the Ld.AR, the Ld.CIT(A) erred in holding that the assessee had filed the RoI belatedly i.e. after the due date whereas the assessee has filed the RoI well within the time allowed as per the CBDT order dated 27.09.2019 (supra). Since the CPC has made the adjustment denying the deduction u/s.80IA of the Act only on the ground that the assessee has filed RoI after due date which finding is erroneous as per CBDT order cited supra.
In such an event, the Ld.CIT(A) erred in disallowing the claim even though the assessee has brought to his notice these relevant facts in its statement of facts which the Ld.CIT(A) has reproduced at Para No.2.1 that it has filed return on 18.09.2019. Therefore, the deduction u/s.80IA of the Act to the tune of Rs.59,49,231/- has been erroneously not allowed u/s 143(1) of the Act and therefore, we don’t countenance the action of the Ld.CIT(A) confirming the action of the CPC u/s.143(1) of the Act.
Therefore, we direct that the assessee be granted deduction u/s.80IA of the Act.
In the result, appeal filed by the assessee is allowed.
Order pronounced on the 04th day of December, 2024, in Chennai.