PR. COMMISSIONER OF INCOME TAX-06 vs. MATANGI RUBBER PVT. LTD.

PDF · subscribers
ITA/8/2016HC DelhiDLHC01601494201512 January 2016Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU2 pages
AI SummaryDismissed

What did the High Court hold?

The ITAT was justified in allowing the deduction under Section 80IC despite a minor technical delay in filing the return. The High Court found the ITAT's view not perverse and declined to frame the question of law.

What were the facts?

The assessee claimed a deduction under Section 80IC of the Income Tax Act, but filed its return 46 minutes after the due date due to a technical delay. The Assessing Officer disallowed the deduction, but the ITAT allowed it, considering the delay to be technical.

What were the issues?

Whether the ITAT was justified in allowing deduction under Section 80IC when the return was filed beyond the due date prescribed under Section 139(1), and if Section 80AC is directory.

Which sections of the Income-tax Act were involved?

Section 80IC,Section 139(1),Section 80AC,Section 119

AI-generated summary — verify with the full judgment below

ITA 8/2016 Page 1 of 2

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 3. +

ITA 8/2016

PR. COMMISSIONER OF INCOME TAX-06 ..... Appellant Through: Mr Rahul Chaudhary, Senior Standing Counsel.

versus

MATANGI RUBBER PVT. LTD.

..... Respondent

Through

CORAM: JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU

O R D E R %

12.01.2016 1. This appeal is directed against the order dated 29th May, 2015 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No.4498/Del/2013 for the Assessment Year ‘AY’ 2009-10.

2.

The question sought to be urged was whether the ITAT was legally justified in allowing deduction under Section 80IC of the Income Tax Act, 1961 (‘Act’) notwithstanding that the Assessee had failed to file its return within the time prescribed under Section 139(1) of the Act and holding that the provisions of Section 80AC are directory?

3.

The Assessee filed its return of income on 1st October, 2009 declaring Nil income after claiming deduction of Rs. 2,34,41,162/- under Section 80IC of the Act. While, completing the assessment by an order dated 5th December, 2011 the Assessing Officer (‘AO’) disallowed the deduction claimed since the return was not filed within the due date prescribed under Section 139(1) of the Act. The ITAT has in the impugned order while concurring the order of the Commissioner

ITA 8/2016 Page 2 of 2

of Income Tax (Appeals) noted that the e-return that was filed was actually uploaded and filed on the website of the income tax department at 12:46 am on 1st October, 2009 whereas the deadline was the midnight of 30th September, 2009/1st October, 2009. As a result, there was a technical delay of 46 minutes in filing the return. In the circumstances, the ITAT observed that it would be a travesty of justice if a technical delay of 46 minutes in filing the return lead to the deduction as claimed by the Assessee being denied.

4.

The learned counsel for the Revenue argues that on a collective reading of Section 80IC and 80AC, the power to condone the delay in filing the return in terms of Section 139(4) of the Act this would be with the Central Board of Direct Taxes as per Section 119 of the Act and, therefore, the ITAT could not have usurped that power and condoned the delay in filing the return.

5.

Considering that in the present case, as pointed out by the ITAT, the delay of 46 minutes was really a technical one and it was shown that the Assessee had tried to file the return within the time but was able to upload it only at 12:46 am, the view taken by the ITAT cannot be said to be perverse. Consequently, while leaving the question regarding the mandatory nature of Section 80 AC of the Act for adjudication in an appropriate case, the Court declines to frame the question of law as urged by the Revenue in this appeal.

6.

The appeal is dismissed.

S.MURALIDHAR, J

VIBHU BAKHRU, J JANUARY 12, 2016 MK

More judgments on Section 80IC

All 1,180 judgments and leading authorities on Section 80IC →

Recent GST High Court judgments

Search GST case law →