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Income Tax Appellate Tribunal, NAGPURBENCH : : NAGPUR
Before: SHRI S.S.GODARA & DR. DIPAK P. RIPOTE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee directed against the order of ld.Commissioner of Income Tax(Appeals)[NFAC] Delhi passed u/s.250 of the Income Tax Act, 1961 for A.Y.2019-20 on 26.12.2021, emanating from order under section 143(1) dated 25.12.2020 issued by DCIT(CPC),
Shree Agarwal Coal India Private Limited [A] Bangalore. The assessee has raised the following grounds of appeal :
“1. The Learned Commissioner of Income Tax (Appeals) [hereinafter referred as “CIT(A)”] erred in upholding the addition made by the AO without considering the fact that assessee has filed the return of income within due date. Moreover, the said deduction claimed by the appellant also was disclosed by the Income Tax Auditor under clause 33 of Form 3CA-3CD. The Form 10CCB is filed with delay due to technical error shown by income tax portal, which lied beyond the control of the appellant. The CIT(A) pressured the provision of section 80AC and made addition invoking the provision of said section. It is worth noting that the appellant has filed the return of income within due date of filing of return and hence provision of section 80AC is duly complied with. Therefore, the CIT(A) erred in making addition by invoking section 80AC.
The technical error of the income tax portal is grossly neglected by the CIT(A). The appellant has duly produced the email communication whereby grievance was raised by the appellant with the income tax helpdesk before the due date lapse. The technical error was resolved by the helpdesk after due date of filing of form 10CCB, which enabled appellant to file the said form only after due date. The CIT(A) failed to appreciate the fact of technical error, despite of documentary evidence, in this regard, produced by the appellant. The CIT(A) erred as he neither discussed nor appreciates the issue of technical error of web-portal and email communication made with helpdesk by the appellant in this regard. As the order of CIT(A) lacks the discussion of technical error and nonconsideration of evidence by the appellant, it results in denial of natural justice to the appellant.
3. The CIT(A) delivered the decision based on judicial pronouncements where in those cases, the return of income was not filed within due dates. However, in the case of the assessee the return of income was duly filed within the due date of filing of return. Hence provision of section 80AC is duly complied wife by the appellant. However, the case laws relied upon by fee CIT(A) were based on non-compliance of section 80AC, where those assessee failed to file fee return of income
Shree Agarwal Coal India Private Limited [A] within due date. Therefore, fee judicial pronouncement of fee case laws relied upon by the CIT(A) are not applicable to the case of appellant. Further, CIT(A) has not discussed fee case laws relied upon by the assessee, therefore natural justice denied, as case laws referred by the appellant are not considered without assigning any reason therefor. The judicial pronouncements relied upon by the appellant have identical case as of the appellant.
The appellant craves to add, delete, insert, omit any ground or part of the grounds of appeal
at the time of hearing of the appeal.” Brief facts of the case :
2. In this case, assessee had filed Return of Income for A.Y.2019-20 under section 139(1) on 31.10.2019. CBDT vide notification no.F.No.225/157/209/ITA.II dated 27.09.2019 had extended the date for filing Return of Income and Various Reports of Audit for A.Y.2019-20 to 31.10.2019. The said Return of Income was processed under section 143(1) of the Act. Assessee had claimed deduction under section 80IA of Rs.34,74,824/-. But assessee had not filed Form No.10CCB along with Return of Income. The Assistant Director of Income Tax, CPC vide his order under section 143(1) dated 25.12.2020 disallowed the claim of assessee under section 80IA of the Act on the ground that Form No.10CCB has not been filed within the due date. Aggrieved by this, assessee filed appeal before the ld.CIT(A). Assessee submitted before
Shree Agarwal Coal India Private Limited [A] the ld.CIT(A) that the Form No.10CCB was ready before the due date. The assessee tried to file Form No.10CCB electronically as required, however, due to technical issues, assessee could not be able to upload Form No.10CCB. The assessee filed a complaint on 31.10.2019 to Income Tax Helpdesk stating the grievance that assessee is unable to upload the Form No.10CCB. Subsequently, assessee uploaded the Form No.10CCB on 13.11.2019 as soon as the technical issue was resolved by the Income Tax Department. However, the ld.CIT(A) upheld the disallowance giving a stricter interpretation to the provisions of the Act.
Aggrieved by the order of the ld.CIT(A), assessee filed appeal before this Tribunal.
Submission of ld.Authorised Representative(ld.AR) : 4. The ld.AR filed a paper book. Ld.AR submitted that assessee tried to upload the Form No.10CCB along with the Return of Income on 31.10.2019. But due to the technical glitches, the Form could not be uploaded. Therefore, assessee raised a grievance with the Income Tax Helpdesk on 31.10.2019 at 7.34 PM. Copy of the said grievance is Shree Agarwal Coal India Private Limited [A] enclosed at Page No.91 of the paper book. Similarly, on 31/10/2019 assessee raised a grievance on E-Nivaran Portal of Income Tax Department raising the grievance that he was unable to upload the Form No.10CCB. Copy of the said grievance is placed on the page no.93. The ld.AR explained that due to the technical glitches on the Income Tax Portal, the Form No.10CCB was uploaded on 13.11.2019. Assessee had claimed the deduction under section 80IA in the Income Tax Return as well as Audit Report. Therefore, ld.AR pleaded that appeal may be allowed.
Submission of ld.Departmental Representative(ld.DR) : 5. The ld.DR for the Revenue relied on the order of ld.CIT(A).
Findings &Analysis : 6. We have heard both the parties and perused the records. It is a fact that assessee had filed Return of Income under section 139(1) of the Act, electronically on 31.10.2019, which was within the extended due date for filing Original Return of Income. In 2019, due date for filing of Return of Income was 30.09.2019, but subsequently it was extended to 31.10.2019.
Shree Agarwal Coal India Private Limited [A] Accordingly, assessee had filed Return of Income within the statutory time limit. Assessee had claimed deduction under section 80IA of the Act. As per section 80IA(7), the deduction shall not be admissible, unless the assessee furnishes a report of the accountant in the prescribed form along with the Return of Income. As per Rule 18BBB, the prescribed Form was 10CCB. Therefore, it was mandatory for the assessee to file the Form No.10CCB along with the Return of Income to become eligible for deduction under section 80IA of the Act. However, in this case, the peculiar facts are that assessee tried to upload the Form No.10CCB, but could not upload it due to technical glitches. Assessee raised grievance with the Income Tax Department Helpdesk immediately on 31.10.2019 at 7.34 PM. On perusal of the copy of the grievance letter(page no.91 & 93 of the paper book) raised by assessee electronically, it is observed that along with the grievance assessee had also uploaded Form No.10CCB in “XML Format”. It means, on 31.10.2019 at 7.34 PM assessee had uploaded Form No.10CCB on “efilinghelpdesk@incometax.gov.in”. On page no.95 of the paper book is the Form No.10CCB showing the date 31.10.2019. Ld.DR has not contravened these factual
Shree Agarwal Coal India Private Limited [A] submissions of the assessee. It means assessee had tried to uploaded the Form No.10CCB along with the Return of Income on 31.10.2019, but could not upload due to technical glitches. However, immediately on 31.10.2019 at 7.34 PM the assessee uploaded Form No.10CCB on efilinghelpdesk@incometax.gov.in, electronically.
6.1 In this peculiar facts and circumstances of the case, we will like to refer to the Hon’ble Supreme Court’s Observations in the case of Shree Sajjan Mills Ltd. Vs. CIT 156 ITR 585 (SC) as under : Quote “The principle that fiscal statutes should be strictly construed does not rule out the application of the principles of reasonable construction to give effect to the purpose or intention of any particular provision as apparent from the scheme of the Act, with the assistance of such external aids as are permissible under the law” Unquote.
6.2 Phronesis flowing from the above referred observations of the Hon’ble Supreme Court, guides us in navigating through this peculiar situation of the assessee. In this peculiar facts and circumstances of the case, since the assessee had uploaded the Form No.10CCB on efilinghelpdesk@incometax.gov.in on 31/10/2019, (as
Shree Agarwal Coal India Private Limited [A] assessee could not upload it with the return due to technical glitches discussed above), we are of the opinion that assessee has not violated the provisions of section 80IA(7) of the Act. Therefore, assessee’s claim under section 80IA is valid. Accordingly, Ground No.1, 2 and 3 of the assessee are allowed.
Ground No.4 is general in nature, does not need any adjudication, hence dismissed.
In the result, appeal of the assessee is partly allowed. Order pronounced in the open Court on 19th April, 2024.