2023 (2) TMI 749

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.... "NFAC"), arising out of the intimation passed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2019-20 2. The brief facts of the case is that the assessee is Credit Co-op. Society, who filed the Return of Income declaring Nil income and claimed deduction u/s. 80P of Rs.59,84,109/- for the Assessment year 2019-20. The assessee filed its e-return on 31.10.2019 at 11.45 P.M. However the Return of Income was uploaded in the Income Tax Portal on 01.11.2019 at 00:04:42 hrs. As the Return was filed after the due date prescribed u/s. 139(1) with a delay of 4 Minutes and 42 Seconds, the assessee was denied the benefit of deduction u/s. 80P of the Act, vide intimation u/s.....

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....n uploading the Income Tax Return in the Income Tax Portal thereby a delay of 4 minute and 42 second in uploading the Return of Income. Thus the Income Tax Portal considered that the return was filed on 01.11.2019 at 00:04:42 hrs. 6. The Ld. Counsel brought to our notice that the assessee made grievance redressal in the e-Nirvan Portal claiming that the delay in internet problem of uploading the returns and requested to treat the Return as filed on 31.10.2019 and allow deduction under section 80P of the Act. The grievance was redressed vide order dated 29.11.2019 stating that the "processing of e-filed return is in progress. Please wait for intimation u/s. 143(1) which will be sent to your registered e-mail ID once the process is completed....

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.... Return of Income is filed beyond the prescribed date u/s. 139(1) of the Act, can the deduction u/s. 80P of the Act be denied to the assessee, by way of adjustment u/s. 143(1) of the Act. On going through the statutory provisions, we found that 80AC of the Act provides that no such deduction under section 80P of the Act shall be allowed to an assessee unless he furnishes a return of his income on or before the due date specified u/s. 139(1) of the Act w.e.f. Assessment Year 2018-19 onwards. However, section 143(1)(a)(v) of the Act provides that disallowance of deduction claimed under any of the provisions of Chapter VI-A under the heading "C- Deductions in respect of certain incomes" (which includes deduction under section 80P of the Act), ....

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....d occurred due to which the return of income was tagged as belated return. We fail to understand as to how the assessee could be termed as defaulter in such a case and what the assessee would have gained by filing the return of income with such a minor delay. It is also not the case of the revenue that the assessee is not entitled for carry forward of losses. 4. On the given facts, the decision of Hon'ble Madras High Court in Regen Infrastructure & Services (P.) Ltd. V/s CBDT (68 Taxmann.com 93) as affirmed by division bench (75 Taxmann.com 135) is squarely applicable to the facts of the case. The Hon'ble Court, under similar circumstances, condoned the delay of one day and held that the petitioner had successfully explained the d....