Tribunal allows carried forward loss due to technical snag, dismissing Revenue appeal

The Tribunal upheld the decision of the ld. CIT(A) to allow the carried forward loss, considering the technical snag as a valid reason for the delay in filing the return of income. The Tribunal cited legal precedents where delays caused by technical issues were not attributed to the assessee's fault and allowed the carry forward of losses. Consequently, the Tribunal dismissed the Revenue's appeal, affirming the decision to permit the carried forward loss due to technical snag-induced delay in filing the return.

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Issues Involved:
- Disallowance of carried forward loss due to late filing of return of income.
- Justification for deleting the disallowance of loss.
- Technical snag as a reason for delay in filing the return of income.

Analysis:

Issue 1: Disallowance of carried forward loss due to late filing of return of income
The Revenue appealed against the order of the Commissioner of Income Tax (Appeals) regarding the disallowance of carried forward loss of Rs. 1,50,40,579/- by the assessing officer. The assessing officer noted that the assessee filed the return of income for AY 2015-16 on 01/11/2015, which was beyond the extended due date of 31/10/2015. The assessing officer issued a show cause notice for disallowance of the loss. The assessee claimed that the delay was due to technical issues on the filing website, which caused the return to be filed after the due date.

Issue 2: Justification for deleting the disallowance of loss
The assessee contended before the ld. CIT(A) that the delay in filing the return was due to technical issues beyond their control, as evidenced by the successful filing of another return before the due date. The ld. CIT(A) allowed the appeal, considering the delay as bonafide and permitted the carried forward loss. The Revenue challenged this decision before the Tribunal, arguing that the delay should not be condoned.

Issue 3: Technical snag as a reason for delay in filing the return of income
The ld. CIT(A) analyzed the submissions of the assessee and referred to legal precedents where delays due to technical snags were considered valid reasons for late filing. The Tribunal upheld the decision of the ld. CIT(A) based on legal principles and factual circumstances. The Tribunal cited the case of Regen Infrastructure & Services (P) Ltd. Vs CBDT and ACIT Vs M/s Noel Pharma, where delays caused by technical issues were not attributed to the assessee's fault and allowed the carry forward of losses. Consequently, the Tribunal dismissed the appeal of the Revenue, affirming the decision to permit the carried forward loss due to technical snag-induced delay in filing the return.

In conclusion, the Tribunal upheld the decision of the ld. CIT(A) to allow the carried forward loss, considering the technical snag as a valid reason for the delay in filing the return of income.

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