Appeal Denied: Late Return Filing Leads to Deduction Denial

The Tribunal dismissed the appeal, upholding the denial of the deduction under section 80IC of the Income Tax Act due to the late filing of the return. Despite the condonation of the delay in filing the appeal, the Tribunal affirmed the decision of the Commissioner of Income Tax (Appeals) that the deduction cannot be allowed once the return is filed beyond the due date specified by law. The Tribunal found no infirmity in the CIT(A)'s decision and upheld the denial of the deduction in accordance with the mandatory provisions of section 80AC.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Denial of deduction under section 80IC of the Income Tax Act due to late filing of the return.

Issue-wise Detailed Analysis:

1. Condonation of Delay in Filing the Appeal:
The appeal was delayed by 32 days. The assessee filed an application seeking condonation of the delay, stating that the delay was unintentional due to compliance with the new GST regime and the illness of the staff responsible for preparing and filing the appeal. A duly sworn affidavit from the Director of the assessee company was provided, detailing the reasons for the delay. The Tribunal noted that the affidavit lacked specific details such as the name of the concerned staff and evidence of illness. Despite observing a lack of sincerity on the part of the assessee in handling such serious matters, the Tribunal condoned the delay considering the smallness of the delay and the reasons stated on oath by the Director, in the interest of justice.

2. Denial of Deduction under Section 80IC Due to Late Filing of the Return:
The sole issue in the appeal was the denial of the claim of deduction under section 80IC amounting to Rs. 75,17,116/-. The Assessing Officer (AO) denied this claim because the assessee failed to file the return by the due date as mandated by section 139(1) of the Act. The return was filed on 9.11.2013, while the due date was 30.9.2012. The AO referred to section 80AC, which mandates filing the return on or before the due date for claiming the deduction, and thus disallowed the deduction.

The matter was appealed before the Commissioner of Income Tax (Appeals) [CIT(A)], who upheld the AO's decision. The CIT(A) cited several judicial precedents, including the Special Bench decision in the case of Saffire Garments and decisions of the ITAT Kolkata and Chandigarh Benches in similar cases, which held that the provisions of section 80AC are mandatory. The CIT(A) concluded that once the return is filed late beyond the due date provided under section 139(1), the deduction under section 80IC cannot be allowed.

The Tribunal reviewed the order of the CIT(A) and found no infirmity. It was undisputed that the law mandates filing the return by the due date for claiming the deduction and that the return in this case was filed beyond the due date. The Tribunal upheld the CIT(A)'s decision, noting that no contrary decisions were presented. The Tribunal concluded that the CIT(A) rightly applied the ratio laid down in the cited decisions, disallowing the claim of deduction under section 80IC.

Conclusion:
The appeal of the assessee was dismissed, and the order pronounced in the Open Court upheld the denial of the deduction under section 80IC due to the late filing of the return.

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