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| The Tax Publishers2020 TaxPub(DT) 3462 (Bang-Trib) INCOME TAX ACT, 1961
Section 10A
Where assessee was denied deduction under section 10A on account of one day delay in filing return of income in terms of section 10A(1A), but on application by assessee CBDT condoned delay, However, considering that order of CBDT only stated that Condonation should not be construed as automatic acceptance of claim for deduction under section 10A, thus, AO was directed to deal with claims made in return of income on merits.
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Deduction under section 10A - Allowability - Condition precedent - Return filed after delay of one day from prescribed due date due to technical glitches in revenue portal
Assessee was a software development company and was 100% export-oriented unit. AO denied deduction because return of income was filed beyond due date prescribed under section 139(1). Assessee challenged order of AO before CIT(A) and while appeal was pending, assessee also moved an application under section 119(2)(b) before CBDT. Delay in filing return of income was condoned by CBDT. CIT(A) remanded the matter to AO, in view of order of CBDT. In remand proceedings, AO alleged that condonation of delay in filing return of income will not amount to acceptance to claims in return of income. CIT(A) upheld order of AO and denied to allow deduction. Held: Assessee filed an application before CBDT requesting it to condone delay of one day in filing return of income. Admittedly, purpose of making said application was to request CBDT to authorize AO to admit claim for deduction under section 10A since return of income through which claim was made, was filed beyond date prescribed for claiming deduction. Tax authorities misunderstood objective of section 119(2)(b) as well as order passed by CBDT. Order passed by CBDT only stated that same should not be construed as automatic acceptance of claim for deduction under section 10A. Thus, order specifically made it clear that AO will be authorized to deal with claims made in return of income on merits. So, CBDT, in fact, relaxed condition prescribed in proviso to section 10A(1A), by condoning delay in filing return of income. Assessee shall be deemed to have complied with condition prescribed in proviso to section 10(1A) with regard to filing of return of income. Matter was restored to AO for examining claim made by assessee under section 10A.
Followed:Saffire Garments v. ITO (ITA No.397/RJT/2009 dated 30-11-2012) : 2013 TaxPub(DT) 0290 (Rkt-Trib).
REFERRED :
FAVOUR : Matter remanded
A.Y. : 2008-09
IN THE ITAT, BANGALORE BENCH
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