Late Filing of Appeal on belief that Form 10CCB, to be filed Manually: ITAT condones delay of 314 days [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench condoned delay of 314 days on the ground that the assessee filed late appeal on belief that Form 10CCB was to be filed manually.

The assessee, M/s. Atlantic Bio Medical Pvt Ltd submitted that it was only in the last week of January 2019 the accountant informed the assessee regarding intimation order under section 143(1) denying the deduction under section 80IC and making disallowance under section 43B merely for non-filing of the Form 10CCB electronically along with the return of income.

The accountant informed the assessee that he has filed the return of income and the audit report well within time and he has also obtained Form 10CCB before the due date of filing the return of income, but he was under bonafide belief that the same is to be filed manually with the Assessing Officer (AO) as and whenrequired and as such did not file the same electronically along with the return of income. Hence, the delay in filing the appeal is not deliberate nor due to any malafide intention but under the bonafide belief of the accountant.

The Counsel for the Revenue, Manoj Sinha,opposed the application for condonation of delay on the ground that the late filing of appeals in this case is apparently malafide due to callous attitude of the assessee and prayed for dismissal of the application.

A Division Bench consisting of Kuldip Singh, Judicial Member and Om Prakash Kant, Accountant Member observed that “Bare perusal of the submissions made by the assessee by way of affidavit seeking condonation of delay shows that the assessee had undisputedly filed the return of income electronically but under bonafide belief that the Form 10CCB was to be filed manually with the AO as and when required thus failed to file the same electronically along with the return of income. No doubt ignorance of law is no excuse but keeping in view the fact that it was first year of filing the return of income along with Form 10CCB electronically and due to human error and under bonafide belief assessee has failed to file the same electronically which was well within their notice.”

“So we are of the considered view that assessee has brought on record sufficient causes to condone the delay of 314 days in filing the appeal, which is accordingly condoned as the assessee has the right to be heard on merits” the Tribunal added.

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