Case Law Details
S.K. Ventures Vs DCIT (ITAT Mumbai)
Introduction: In a recent ruling, the Income Tax Appellate Tribunal (ITAT) in Mumbai has set a precedent that ensures taxpayers are not denied the benefits of Section 80IB due to technical glitches in the e-filing system. The case of S.K. Ventures Vs Deputy Commissioner of Income Tax (DCIT) for the assessment years 2010-11, 2015-16, and 2016-17, addresses a crucial aspect of modern taxation – the impact of e-filing technicalities on statutory deductions.
Detailed Analysis:
S.K. Ventures, a company engaged in real estate development, filed its return of income for the AY 2017-18, claiming a 100% deduction on profits from a housing project under Section 80IB of the Income Tax Act, 1961. However, due to technical difficulties, the assessee was unable to upload the necessary audit report and Form 10CCB within the stipulated deadline, leading to the disallowance of the deduction by the assessing officer. This action was upheld by the National Faceless Appeal Centre (NFAC), prompting the assessee to appeal to the ITAT Mumbai.
The ITAT Mumbai, after examining the case, emphasized that a taxpayer should not be penalized for delays caused by technical glitches in the e-filing system, especially when the new e-filing procedure was relatively nascent. The Tribunal noted that the assessee had indeed attempted to comply with the filing requirements and had eventually uploaded the required documents immediately after the technical issues were resolved.
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