Appeal denied for late filing, Section 80P deduction disallowed under Income Tax Act

The tribunal dismissed the assessee's appeal and affirmed the denial of the Section 80P deduction due to the failure to file the return within the due date as required by Section 139(1) of the Income Tax Act, 1961. The tribunal emphasized the mandatory nature of the condition for claiming deductions before the due date, citing relevant case law and legislative provisions. The decision was rendered on 19th December 2022 by the tribunal.

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Issues:
1. Claim of Section 80P deduction based on filing return within due date under Section 139(1) of the Income Tax Act, 1961.

Analysis:
The judgment revolves around the appeal of the assessee for the assessment year 2018-19 against the order of the National Faceless Appeal Centre (NFAC) Delhi. The primary issue pertains to the denial of the assessee's Section 80P deduction claim of Rs.14,54,103/- by the lower authorities due to the failure to file the return within the due date under Section 139(1) of the Act.

The assessee vehemently argued that the lower authorities erred in law and on facts in rejecting the deduction claim. However, the tribunal found no merit in the assessee's stand. The tribunal referred to Section 80AC(ii) of the Act, which prescribes claiming deductions only after filing the return before the due date. Despite the assessee's reliance on a previous tribunal decision, the tribunal held that the condition is mandatory, not directory, citing the case of Commissioner vs. Dilip Kumar & Company (2018) 9 SCC 1 (SC)(FB) emphasizing strict interpretation of provisions in a taxing statute.

Moreover, the tribunal highlighted the negative covenants in Section 80AC(ii) interpreted by the legislature post-01.04.2018, making it a mandatory stipulation. The tribunal also noted that the previous tribunal decision cited by the assessee was not a binding precedent for the assessment year 2009-10 and upheld the lower authorities' action in denying the Section 80P deduction.

In conclusion, the tribunal dismissed the assessee's appeal, affirming the denial of the Section 80P deduction based on the failure to file the return within the due date as required by Section 139(1) of the Act. The judgment was dictated and pronounced on 19th December 2022 by the tribunal.

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