Claim of Deduction u/s 80-IA of Income Tax Act Rejected due to Delay in Filing Income Tax Returns: ITAT Directs Re-adjudication [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) directed the assessing officer to re-adjudicate the rejection of the claim of deduction under section 80-IA of the Income Tax Act,1961 due to delay in filing the Income Tax Returns. 

Dunichand Khitri Raja, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the disallowance of the claim of deduction under section 80-IA of the Income Tax Act by the assessing officer. 

Ankit, the counsel for the assessee contended that due to the technical glitches, form 10CCB could not be uploaded on the e-filing portal of the Income Tax Department and contacted the e-filing help desk for resolving the issue since the issue was related to the non-acceptance of Form 10CCB by the e-filing system of the Income Tax Department. 

It was also submitted that the reasons for non-filing of form 10CCB along with the return of income was on account of reasons beyond the control of the assessee and should not act as a bar to the allowability to the claim of deduction under section 80-IA of the Income Tax Act. 

Sankar Ganesh K, the counsel for the revenue contended that the assessee did not file any Income Tax Returns for supporting the claim of deduction under section 80-IA of the Income Tax Act and relied on the decisions made by the lower authorities. 

The bench observed that the assessee was entitled to a claim of deduction under section 80-IA of the Income Tax Act and the rejection made by the assessing officer was not as per the law and is liable to be deleted. 

The two-member bench comprising Chandra Poojari (Accountant) and George George K (Judicial) directed the assessing officer to re-adjudicate the matter for allowing the claim of deduction under section 80-IA of the Income Tax Act while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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