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2022 (9) TMI 474 - Income Tax
Deduction u/s. 80P - hardship to file e-return of income before the due date as per provisions of section 139(1) - delay in filing the return was on account of two reasons, firstly, assessee’s accountant left midway without informing and handover of pending duties and secondly, it took long time to reset login password, which was necessary to file e-return - HELD THAT:- Assessee is dissatisfied with the denial of deduction u/s. 80P by CIT(A) by applying the provisions of section 80AC - The undisputed facts remains that the assessee filed belated e-return on 18-07-2020 for the AY 2019-20, which was beyond the due date prescribed u/s.139(1). As per amendment brought in by Finance Act, 2018 w.e.f 1-4-2018 in section 80AC of the Act, as per clause (ii) of the said section on or after first day of April, 2018, no deduction is admissible under any provisions of Chapter VIA of the Act unless the assessee furnishes return of income for such assessment year on or before the due date specified under sub-section (1) of section 139.
The assessee in order to claim deduction u/s. 80P was required to file the return before the due date as specified in sub-section (1) of section 139 of the Act. Assessee has stated to have faced genuine hardship, which prevented it to file the return of income before the due date.
In the instant case the assessee faced genuine hardship, which mainly arised on account of resetting of login password, which is necessary for e-filing the return - As observe that the genuineness of claim of the assessee regarding deduction u/s. 80P of the Act has not been examined and the claim was denied merely for delay in filing e-return.
It will certainly create hardship to the assessee if such claim which may be a genuine claim is denied for this technical error. In the interest of justice restore the issue to the file of the AO and direct him to place the application of assessee of having faced genuine hardship to file e-return of income before the due date as per provisions of section 139(1) before the Board(Central Board of Direct Taxes(CBDT) for considering the same and in case the ‘Board’ decides in favour of the assessee, then the claim of assessee u/s. 80P may be examined on merits in accordance with law. We direct the assessee to file necessary documents and application as referred above before the AO. Appeal of the assessee is allowed for statistical purpose.