The Surat Bench of the Income Tax Appellate Tribunal (ITAT), comprising Pawan Singh, Judicial Member and AL Saini, Accountant Member observed that a delay of One Minute in filing of Return due to Technical Snags in Income Tax Website can be condoned.
The assessee, Hi-Tech Water Solution Pvt. Ltd, is a Private Limited Company and engaged in the business of developing, operating and maintaining the infrastructure facility. The assessee-company filed its return of income for assessment year (A.Y.) 2018-19 on 31-10-2018 (Midnight) at 00.01 hours, declaring total income at Rs. Nil, after claiming deduction under section 80 IA (4) and deemed total income under Section 115 JB of the Income Tax Act at Rs.1 crores.
The assessee had claimed deduction under Section 80-IA(4) of the Income Tax Act to the tune of Rs.1 crores on account of infrastructure development. The return of income was filed by assessee on 31-10-2018 (Midnight) at 12.00, however, the server (the computer electronic machine- website of department) accepted it at 12.01 hours on 01-11-2018 (next day).
Thus, return of income so filed was late by one minute. Therefore, deduction claimed by assessee under section 80 IA (4) of the Income Tax Act was denied by CPC, Bangalore (Assessing officer), as while processing of the return of income by the CPC, it was considered, as if the return of income was filed beyond due date prescribed under section 139(1) of the Income Tax Act, and therefore by invoking the provision of section 143(1)(a)(v) of the Income Tax Act, the deduction claimed by assessee under Section 80 IA(4) has been disallowed.
The Counsel for the assessee pleaded that return of income filed by the assessee is late by one minute as the server (the computer electronic machine of the Department- website of department) was not responding properly, hence there was delay in filling the appeal by one minute only.
The Counsel further submitted that such delay is due to the fact that server (website of department) of the Income Tax Department was working slow, therefore delay in filling the return of income may be condoned and the deduction under section 80IA of the Act should be allowed.
The Tribunal observed that “We note that delay of one minute in filing of the return was due to technical snags in the website of department, and therefore return could not be uploaded. Therefore, we note that there is only a negligible delay (one minute only) which is due to bonafide reasons as has explained above, therefore, delay in filling return of income is hereby condoned.”
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