The Ahmedabad Bench of the Income Tax Appellate Tribunal ( ITAT ) granted benefits under Section 115BAA of the Income Tax Act, 1961 explaining that Income Tax filing delay caused by technical default was condonable.
Zodiac Energy Limited, the assessee is an Ahmedabad based company that filed an appeal with the Income Tax Appellate Tribunal (ITAT) regarding the assessment year 2021-22. The appeal challenged the denial of concessional tax benefits under Section 115BAA of the Income Tax Act, 1961.
The denial was based on an alleged failure to meet condition (iii) of the Central Board of Direct Taxes ( CBDT ) circular dated October 23, 2023, regarding timely filing requirements. The Assessing Officer’s rejection was based on a screenshot of the company’s Income Tax Return (ITR) that indicated non-compliance.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The assessee’s counsel argued that the screenshot used by the Assessing Officer was erroneous and submitted the correct ITR screenshot to the tribunal as evidence. The assessee’s counsel argued that the delay in filing the required forms and returns was due to technical defects in the filing process which should be condoned under the law.
During the tribunal hearing, the assessee’s counsel provided additional documentation and the correct ITR details which demonstrated compliance with the conditions of Section 115BAA of the Income Tax Act, 1961.
Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here
The two-member bench comprising B.R.R. Kumar ( Vice-President ) and Suchitra Kamble ( Judicial Member ) acknowledged the assessee’s compliance and ruled that the delay due to technical defects was condonable.
The tribunal observed that the denial of benefits was primarily due to procedural lapses and technical issues that were not substantive non-compliance. So, the tribunal directed the Assessing Officer to rectify the matter and grant the benefits under Section 115BAA of the Income Tax Act.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
