Case Law Details
Future Generali India Insurance Company Limited Vs National Faceless Appeal Centre (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favor of Future Generali India Insurance Company Limited (the assessee), allowing the claim of deduction under Section 80JJAA of the Income-tax Act for the assessment year 2020-21. The claim was initially denied by the Centralized Processing Centre based on the mistaken categorization of the revised return as an original return filed belatedly.
Analysis: The disputed issue in this case was the denial of the deduction claimed by the assessee under Section 80JJAA of the Income-tax Act. The Centralized Processing Centre had relied on the acknowledgement of the revised return filed on 16th March 2021, considering it as the original return and thereby denying the deduction since it was filed belatedly.
However, during the proceedings, it was brought to the notice of the ITAT that the assessee had actually filed the original return of income on 15th February 2021, well within the time prescribed under Section 139(1) of the Act. The mistake occurred in the categorization of the revised return as an original return, leading to the denial of the deduction.
The ITAT recognized the mistake and held that the assessee was eligible to claim the deduction under Section 80JJAA as the original return was filed on time. The tribunal directed the Assessing Officer to allow the claim after verifying the details submitted by the assessee.
Conclusion: ITAT Mumbai’s ruling in this case upheld the taxpayer’s right to claim the deduction under Section 80JJAA for the assessment year 2020-21. The denial of the claim was based on an error in categorizing the revised return as an original return, which the tribunal rectified by acknowledging the timely filing of the original return.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), National Faceless Delhi [hereinafter in short “Ld.CIT(A)”] dated 19.09.2022 for the A.Y.2020-21 passed u/s. 250 of Income-tax Act, 1961 (in short “Act”).
2. Aggrieved with the order of the Ld.CIT(A), assessee is in appeal before us and raised following grounds in its appeal: –
1. Erred in not considering the factual details submitted for the purpose of claim of deduction of profession tax amounting to INR 4,25,105 for AY 2019-20 paid in AY 2020-21 and directing the Learned Assessing Officer (AO) to verify the said factual details in relation to the profession tax payment made in AY 2020-21.
2. Erred in upholding the disallowance of deduction under section 80JJAA of the Act amounting to INR 85,14,573 while computing total income by placing reliance on Intimation issued under section 143(1) of the Act wherein the date of original filing of return of income has been incorrectly mentioned as 16 March 2021 instead of 15 February 2021.
3. Erred in concluding the fact that the return of income was not filed as per the provisions of section 139(1) of the Act thereby invoking the provisions of section 80AC of the Act for the purpose of disallowing the deduction under section 80JJAA of the Act.
4. Erred in not deleting the disallowance of 80JJAA of the Act, as no opportunity of heard was given before issuing intimation as per section 143(1) while proposing the aforesaid adjustment.
5. Erred in not adjudicating and deleting the ground in relation to interest levied under section 234A and section 234C of the Act amounting to INR 84,381 and INR 12,44,811 respectively. CIT(A) also erred in not adjudicating the fees levied under section 234F of the Act amounting to INR 10,000 as per the intimation issued under section 143(1) of the Act. ”
3. At the time of hearing, Ld. AR submitted that assessee is not pressing Ground No. 1, accordingly, Ground No. 1 filed by the assessee is dismissed as not pressed.
4. With regard to Ground Nos. 2 to 4 which is relating to denial of deduction claimed by the assessee u/s. 80JJAA of the Act. The sole reason for denial of the above deduction by the Centralized Processing Centre in assessment u/s. 143(1) of the Act is that assessee has filed return of income belatedly. They heavily relied on the return of income filed by the assessee dated 16.03.2021 and as per the acknowledgement recorded in intimation u/s. 143(1) shows that the return of income filed by the assessee is original, belatedly, the same is recorded in the intimation issued u/s.143(1) of the Act. Ld.CIT(A) also heavily relied on the recording of type of return (ITR Form 6 type) as original return of income and denied the deduction claimed u/s. 80JJAA of the Act.
5. At the time of hearing, it is brought to our notice that the assessee has already filed return of income on 15.02.2021 the same is submitted as part of the Paper Book. However, the same is not been countered by the Ld.DR and as per the original return of income filed by the assessee dated 15.02.2021 which was filed electronically with the acknowledgement number, and filed within the due date for filing the return of income. However, Ld.DR relied on the orders of the lower authorities.
6. Considered the rival submissions and material placed on record, we observe that assessee has filed its original return of income for the A.Y.2020-2021 on 15.02.2021 at 10:46:50 hrs and subsequently assessee has filed the revised return of income which the Centralized Processing Centre has considered as original return of income. It was observed by them that assessee has filed the return of income belatedly. For some reason, the revised return of income filed was categorized as original return of income. Therefore, as per the provisions of section 80JJAA the assessee cannot claim any benefit under this section unless assessee files the return of income on time allowed u/s. 139(1) of the Act. However, in the given case it is brought to our notice that assessee has filed the original return of income before the time prescribed u/s. 139(1) of the Act. Therefore, the assessee is eligible to claim the deduction u/s.80JJAA of the Act. Therefore, we direct the Assessing Officer to allow the claim made by the assessee after due verification of the claim of the assessee. Accordingly, the ground raised by the assessee is accordingly, allowed.
7. With regard to Ground No. 5 which is consequential in nature, accordingly, the same is dismissed.
8. In the result, appeal filed by the assessee is partly allowed.
Order pronounced in the open court on 12th July, 2023.
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