9911796707
TMI Blog2025 (5) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... uharda Sahakari Act, 1997. The appellant assessee filed return of income for the year under dispute i.e. 2019-20 as on 25th September 2019 declaring total income at Rs. Nil after claiming deduction under section 80P(2)(a)(i) of the Act for Rs. 27,07,176/- only. 3. The CPC while processing the return found that as per section 139(1) of the Act, the due date for filing return of income was on or before the 31st August 2019 whereas the assessee filed return after the due date as on 25th September 2019. Hence the CPC in the intimation order passed under section 143(1) of the Act, dated 22nd February 2020, disallowed the claim of deduction under section 80P of the Act. 4. The aggrieved assessee preferred an appeal before the learned CIT(A). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the prescribed due date. The appellant has stated that it had waited for outcome of the rectification application is not acceptable as filing of appeal and filing of rectification application are two separate legal processes and these cannot prevent appellant to file the appeal in time. The reasons stated by the appellant have been perused but are not found to be tenable as the appellant has failed to demonstrate sufficient cause or any other hardship for delay in filing of the present appeal and hence, the same cannot be condoned. The above view has also been taken by Hon'ble High Court of Madras in the case of Siva Industries & Holdings Ltd. Vs Assistant Commissioner of Income-tax, Company Circle VI(3), Chennai [2023] 153 taxmann.com 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the case, it had remained pending until 12.02.2024, and the time consumed in processing the application should be excluded when computing the period of limitation. 10. The AR emphasized that the rejection of the rectification application on the ground that no hard copy was filed is untenable, particularly in the context of a paperless system now adopted by the Income Tax Department. The contents of the application clearly showed a mistake apparent on record regarding the disallowance of deduction under section 80P of the Act, which ought to have been rectified under section 154 of the Act. 11. Moreover, the ld. AR contended there was a gross violation of the principles of natural justice as no notice or opportunity for a personal heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation, and no findings were required on the merits, as the assessee had failed to comply with the statutory requirements within the prescribed time. 14.1 On the merits of the claim under section 80P of the Income Tax Act, the ld. DR argued that the assessee had not filed its return of income within the due date as prescribed under section 139(1) of the Act. While the assessee claimed that it had filed the return on 25.09.2019 and relied on the CBDT's extension of the due date to 31.10.2019, the DR pointed out that this extension was applicable only to those assessee's who were required to file a tax audit report along with the return. In the present case, the assessee neither filed its tax audit report nor mentioned the requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delay was explained by the assessee on the basis that it had chosen to pursue a rectification route rather than the appellate remedy, due to a bona fide belief that the disallowance was a clear mistake apparent from the record and could be rectified under section 154 of the Act. The rectification application was filed in good faith and was pending for over two years before it was finally closed. Given this background, we find that the explanation for delay is a genuine and under the bona-fide belief and not due to negligence or deliberate non-compliance. Therefore, in the interest of substantial justice, we deem it appropriate to condone the delay and admit the appeal for adjudication on merits. 15.2 On the merits of the matter, we note t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
