Itat/84/2024 Of Principal Commissioner Of Income Tax Central 1 Kolkata v. Surendra Steels Private Limited

OD-26 ORDER SHEETITAT/84/2024IA NO: GA/1/2024IN THE HIGH COURT AT CALCUTTASPECIAL JURISDICTION(INCOME TAX)ORIGINAL SIDE PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL 1, KOLKATA-VS-SURENDRA STEELS PRIVATE LIMITED BEFORE: THE HON’BLE THE CHIEF JUSTICE T.S. SIVAGNANAMANDHON’BLE JUSTICE HIRANMAY BHATTACHARYYA DATE: 22 MARCH 2024. Mr. P. Dudheria, Adv. Mr. S. Agarwal, Adv.; Mr. B.K. Singh, Adv.; Mr. D. Poddar, Adv., The Court: This appeal filed by the revenue under section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated August9, 2023 passed by the Income Tax Appellate Tribunal, “B” Bench, Kolkata inITA No.217/Kol/2023 relating to assessment year 2016-17. The revenue has raised the following substantial questions of law for consideration: (a)Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in law to delete the addition of Rs.3,36,68,575/- made on account of disallowance of deductionu/s 80IC of the I.T. Act, 1961? (b)Whether on the facts and in the circumstances of the case, the learned Tribunal was justified in law to delete the addition without considering the fact that assessee has failed to complythe mandatory condition for claiming deduction u/s 80IC of theIncome Tax Act 1961 as assessee did not file ITR in due time,which is a mandatory condition laid down in unambiguouslanguage contained in section 80AC of the Act? We have heard Mr. Dudheria, learned counsel for the appellant, and Mr. Agarwal, learned counsel appearing for the respondent. The issue involved in this appeal is whether the Tribunal was justified in affirming the order passed by the Commissioner of Income Tax,Kolkata-20, thereby deleting the amount of Rs.3,36,68,575/- made by theAssessing Officer on account of disallowance under section 80AC of the Act. On perusal of the order passed by the CITA, dated December 13, 2022, we find that the due date for filing of the return was October 17, 2016whereas the return could be filed by the assessee only on October 18, 2016, thereason being that there was congestion in the online portal of the Income TaxDepartment which was obviously beyond the control of the assessee. Further, the assessee had demonstrated before the CITA that it hadgenerated the XML file on the Income Tax Portal on October 17, 2016 anduploaded the same but due to the congestion, the ITR-V which was generatedhas shown the date of filing as October 18, 2016. However, the XML fileavailable in the Income Tax Portal showed the date of creation as October 17,2016.Apart from that, the CITA also noted that even assuming that therewas delay, it was negligible as it was only for a few hours. Thus the CITA came to the conclulsion that the assessee cannot be denied of the benefit merely on technical grounds. The correctness of thefinding entered by the CITA was tested by the Tribunal in the appeal filed bythe department that the Tribunal had referred in the assessee’s own case for theassessment year 2019-20. Mr. Agarwal, learned counsel appearing for the respondent wouldfairly submit that the said decision is slightly different on facts and perhapsneed not be referred to the said decision as assessee’s own case for theassessment year 2019-20. Be that as it may, the Tribunal in that case had noted that theassessee’s books of accounts were audited and the assessee had filed Form 3CAand Form 3CB on October 17, 2017 and Form 10CCB in respect of the claim under section 80AC was also filed on October 17, 2016 which was well withinthe due date. Thus the Tribunal on reappreciation of the facts had dismissed theappeal filed by the revenue. Thus no question much less substantial question has arisen in thisappeal. Accordingly, the appeal fails and is dismissed along with the connectedapplication. (T.S. SIVAGNANAM, CJ.) (HIRANMAY BHATTACHARYYA, J.) tk