Section 80IA deduction allowed despite 1 hour 22 minute delay in Form 10CCB filing due to portal technical glitches

ITAT Raipur ruled in favor of the assessee regarding deduction under section 80IA despite a 1 hour 22 minute delay in filing Form 10CCB past the 31.10.2022 deadline. The tribunal held that the delay was caused by technical glitches on the Income Tax portal, not assessee negligence. Since the form was filed at 01:22 AM on 01.11.2022 due to portal malfunctions beyond the assessee's control, and continuous filing attempts were made, the form was deemed filed within prescribed time with no penalty imposed.

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Issues Involved:
1. Justification of deduction u/s 80IA due to delay in filing Form 10CCB.
2. Technical glitches on the Income Tax portal.
3. Applicability of CBDT circular extending the due date for filing Tax Audit report.
4. Authority of Addl./JCIT(A) to condone the delay.
5. Impact of slight delay (1 hour and 22 minutes) on condonation policy.
6. Interpretation of exemption notifications as per apex court's principles.

Issue-wise Detailed Analysis:

1. Justification of Deduction u/s 80IA Due to Delay in Filing Form 10CCB:
The department challenged the allowance of deduction u/s 80IA amounting to Rs. 31,92,60,329/- by the Addl./JCIT(A), arguing that the delay in filing Form 10CCB should not have been condoned. The Addl./JCIT(A) condoned the delay of 1 hour and 22 minutes, attributing it to technical glitches on the Income Tax portal on the night of 31.10.2022. The tribunal upheld the Addl./JCIT(A)'s decision, emphasizing that the delay was minimal and due to technical issues beyond the assessee's control.

2. Technical Glitches on the Income Tax Portal:
The assessee claimed that the delay in filing Form 10CCB was due to technical glitches on the Income Tax portal. The tribunal accepted this explanation, supported by screenshots showing multiple attempts to upload the form. The tribunal noted that the CBDT had extended the due date for filing the Tax Audit report due to similar technical issues, reinforcing the validity of the assessee's claim.

3. Applicability of CBDT Circular Extending the Due Date for Filing Tax Audit Report:
The department argued that the CBDT circular extending the due date for filing the Tax Audit report to 7th November 2022 did not apply to the assessee's case. However, the tribunal found that the technical glitches affecting the portal justified the extension and supported the assessee's claim of a genuine attempt to comply within the original deadline.

4. Authority of Addl./JCIT(A) to Condon the Delay:
The department contended that the Addl./JCIT(A) lacked the authority to condone the delay under section 119(2)(b) as per CBDT Circular 9/2015. The tribunal disagreed, stating that the delay was due to technical issues on the Income Tax portal, thus falling outside the scope of the circular. The tribunal emphasized a justice-oriented approach, aligning with precedents where minor delays due to technical glitches were condoned.

5. Impact of Slight Delay (1 Hour and 22 Minutes) on Condonation Policy:
The department argued that there was no settled SOP/policy for condoning slight delays, leading to complications and arbitrariness. The tribunal, however, highlighted precedents where minor delays were condoned due to technical issues, emphasizing a non-pedantic, justice-oriented approach. The tribunal referenced multiple case laws supporting the view that procedural requirements should not result in undue hardship if genuine attempts to comply were made.

6. Interpretation of Exemption Notifications as per Apex Court's Principles:
The department cited the apex court's ruling in Commissioner of Customs (Import), Mumbai v. Dilip Kumar & Company, arguing for strict interpretation of exemption notifications. The tribunal distinguished the present case, noting that the delay was minimal and due to technical glitches, and thus, a strict interpretation was not warranted. The tribunal upheld the Addl./JCIT(A)'s decision, emphasizing the need for a balanced approach in cases of minor procedural delays.

Conclusion:
The tribunal dismissed the department's appeal, upholding the Addl./JCIT(A)'s decision to condone the delay in filing Form 10CCB and allowing the deduction u/s 80IA. The tribunal emphasized a justice-oriented approach, considering the technical glitches on the Income Tax portal and the minimal delay involved. The decision was aligned with precedents supporting the condonation of minor delays due to genuine technical issues.

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