Section 80-IB(10) deduction could not be denied for Genuine delay due to error on Income Tax website

Meera Enterprises Vs. ITO (ITAT Mumbai)

The Chartered Accountant had prepared the return along with the necessary annexures on 15-10-2010 but due to heavy pressure on computer server of the Centralized Processing Center (CPC) Income Tax Department, Bangalore, the return filing was slow till 8 p.m. Thereafter the Chartered Accountant tried to upload the income tax return, but the same could not he uploaded due to the mismatch between the date of formation with the income tax database and date as per the data available with the Chartered Accountant. He tried to obtain the date of formation from Income Tax Helpline, but the Helpline Assistance was not able to provide the same due to technical difficulties. As it was late in the evening the correct date of formation could not be obtained from the office of the assessee. Hence, the return could not be filed on 15-10-2010. Copy of the screenshot explaining the reason of error occurred while registering with e-filing Portal of Income Tax Department was filed in the assessee’s paper book. As soon as the Counsel received the date of formation from the Helpline of the Income Tax Department the same was filed at 11 AM on 16-10-2010. AO, however, did not accept the same and denied deduction claimed under section 80-IB(10).

Held by ITAT

I find that the assessee has filed screen shot of error in E-filing registration with the Centralized Processing Center, Bangalore wherein the return of income was refused acceptance for the reason ‘your Date of Birth does not match with the data you entered” it means that assessee genuinely tried to file the return of income within the due date of filing under section 139(1) of the Act i.e., by 15-10-2010 but could not file. Genuinely, the assessee filed the return of income with Centralized Processing Center, Bangalore only on 16-10-2010 by 11AM. Accordingly, I allow the claim of the assessee and this issue of the assessee’s appeal is allowed.

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