Tribunal permits late deduction claim under section 80-IA, rejects Revenue's objections

The tribunal allowed the assessee to claim deduction under section 80-IA in returns filed under section 153A, even though not originally claimed, emphasizing the assessee's eligibility and rejecting the Revenue's arguments against fresh claims or deductions. The tribunal upheld the principles set by the Supreme Court, affirming the validity of the deduction claimed post the due date specified under section 139. The tribunal dismissed the Revenue's contentions regarding treating returns filed under section 153A as belated, directing the Assessing Officer to assess the deduction's entitlement on its merits.

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Issues:
- Whether deduction u/s 80-IA claimed for the first time in return filed u/s 153A is allowableRs.
- Interpretation of provisions of section 153A to 153C for fresh claims or deductions.
- Application of principles laid down by the Hon'ble Supreme Court in reassessment proceedings.
- Utilizing section 153A to reopen concluded assessments.
- Claiming deduction u/s 80IA in return filed u/s 153A post the due date specified under section 139.
- Treatment of returns filed u/s 153A as belated ones.

Analysis:

Issue 1: Deduction u/s 80-IA in return filed u/s 153A
The Revenue argued that the assessee cannot claim deduction u/s 80-IA in the return filed u/s 153A as it should have been claimed in the original return u/s 139(1). However, the tribunal found no merit in this argument as the assessee had not claimed the deduction in the original returns, and the Section 153A proceedings were initiated after the time limit for filing the original returns had elapsed. The tribunal held that the assessee was eligible to claim the deduction in the returns filed u/s 153A.

Issue 2: Fresh claims or deductions under sections 153A to 153C
The Revenue contended that fresh claims or deductions cannot be allowed in returns filed u/s 153A. However, the tribunal disagreed, citing precedents and legislative provisions that supported the assessee's right to raise new claims in returns filed u/s 153A. The tribunal highlighted that Section 153A overrides other sections, allowing for the consideration of new claims.

Issue 3: Principles laid down by the Hon'ble Supreme Court
The tribunal analyzed the principles laid down by the Hon'ble Supreme Court in reassessment proceedings and found that the assessee could indeed claim deductions in returns filed u/s 153A, even if not claimed in the original assessment. The tribunal emphasized the benefit of doubt to the assessee in such proceedings.

Issue 4: Reopening concluded assessments
The tribunal addressed the argument that using section 153A to reopen concluded assessments was not permissible. However, the tribunal clarified that the assessee's fresh claim of deduction u/s 80-IA in the returns filed u/s 153A was valid and did not amount to reopening concluded assessments.

Issue 5: Claiming deduction post due date specified under section 139
The Revenue raised concerns about the deduction claimed u/s 80IA in returns filed u/s 153A post the due date specified under section 139. The tribunal dismissed this argument, stating that the assessee's returns were valid and eligible for consideration, rejecting the Revenue's technical argument.

Issue 6: Treatment of returns filed u/s 153A as belated
The Revenue argued that the returns filed u/s 153A should be treated as belated due to non-compliance with the due date specified in the Assessing Officer's notice. However, the tribunal rejected this argument, noting that the Assessing Officer did not treat the returns as belated, and the returns were accepted as valid within the prescribed time.

In conclusion, the tribunal upheld the assessee's right to claim the deduction u/s 80-IA in the returns filed u/s 153A and directed the Assessing Officer to examine the assessee's entitlement to the deduction on merits. The appeals were partly allowed, and the order was pronounced on 22nd February 2022.

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