ITAT Upholds Validity of Income Tax Return Filed 2 Seconds Late Due to Technical Glitches
The Pune Bench of the Income Tax Appellate Tribunal (ITAT) has ruled in favor of Kumar Builders Project Pune Pvt. Ltd., a real estate development company, by upholding the validity of an income tax return filed 2 seconds late due to technical glitches on the Income Tax e-filing portal.
Income TaxReal EstateItatTax ReturnTechnical GlitchesReal Estate PuneJun 21, 2025
Kumar Builders Project Pune Pvt. Ltd. (assessee), a private limited company engaged in real estate development, faced scrutiny for Assessment Year (AY) 2019-20. The assessee filed the original return of income, declaring a loss of Rs. 1,22,14,57,394. The assessee claimed a TDS credit of Rs. 4,02,541, thereby seeking a refund of Rs. 4,02,541. The assessee filed a revised return on 06.03.2020, claiming a refund of Rs. 2,541 and a carry forward loss of Rs. 3,95,51,713.
The Central Processing Centre (CPC) disallowed the carry forward of the business loss, citing that the original return was filed belatedly, as the acknowledgment was generated at 00:00:02 hours on 01.11.2019, 2 seconds past the deadline of 31.10.2019.
Aggrieved by the CPC’s decision, the assessee appealed to the Additional/Joint Commissioner of Income Tax (Appeals) [Addl/JCIT(A)]. The Addl/JCIT(A) held that the return was filed in time, allowing the carry forward of the loss.
Aggrieved by the CPC’s decision, the Revenue filed an appeal before the ITAT. The counsel for the Revenue argued that the original return was filed after the statutory period and delayed by 2 seconds, and the CPC decision was fully justified.
The counsel for the assessee relied on precedents such as the Ahmedabad Bench’s decision in The Khedbrahma Taluka Primary Teachers Co-op. Credit Society Ltd. (delay of 4 minutes 42 seconds condoned) and the Mumbai Bench’s ruling in DCIT vs. M/s. Palava Dwellers Pvt. Ltd. (2-minute delay condoned). The counsel argued that a 2-second delay due to technical issues should not penalize the assessee.
The two-member bench, comprising R.K. Panda (Vice President) and Astha Chandra (Judicial Member), observed that the return was uploaded before midnight on 31.10.2019, but the acknowledgment was generated 2 seconds later due to technical glitches and portal rush. The Tribunal held that the 2-second delay was beyond the assessee’s control. The Tribunal affirmed the Addl/JCIT(A)’s order and held that there was no error in the order of Addl/JCIT(A).
The Tribunal directed the Assessing Officer to treat the return as filed in time under Section 139(1), allowing the carry forward of the business loss. The appeal of the Revenue was dismissed.
Frequently Asked Questions
What was the main issue in the case of Kumar Builders Project Pune Pvt. Ltd.?
The main issue was whether an income tax return filed 2 seconds late due to technical glitches on the Income Tax e-filing portal should be considered valid and treated as filed in time.
What was the decision of the Central Processing Centre (CPC) regarding the late filing?
The CPC disallowed the carry forward of the business loss, citing that the original return was filed belatedly, as the acknowledgment was generated 2 seconds past the deadline.
What precedent did the assessee's counsel rely on?
The assessee's counsel relied on precedents such as the Ahmedabad Bench’s decision in The Khedbrahma Taluka Primary Teachers Co-op. Credit Society Ltd. and the Mumbai Bench’s ruling in DCIT vs. M/s. Palava Dwellers Pvt. Ltd., where delays of 4 minutes 42 seconds and 2 minutes, respectively, were condoned.
What was the final decision of the ITAT?
The ITAT upheld the validity of the income tax return filed 2 seconds late, directing the Assessing Officer to treat the return as filed in time under Section 139(1), allowing the carry forward of the business loss.
What was the impact of the ITAT's decision on Kumar Builders Project Pune Pvt. Ltd.?
The ITAT's decision allowed Kumar Builders Project Pune Pvt. Ltd. to carry forward their business loss, which was previously disallowed by the CPC due to the 2-second delay in filing the return.
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