Belated return filing did not defeat deduction claim where the delay was explained and the incentive provision was otherwise satisfied.

Deduction for hospital project incentives was considered eligible despite a belated return, because the only default was failure to file within the due date and the delay was supported by a reasonable explanation tied to receipt reconciliation and survey-related material. Although timely filing is required under the relevant deduction and return-filing provisions, the technical lapse was treated as insufficient to deny a claim otherwise allowed on the facts. The deduction was therefore regarded as not deniable solely on the ground that the return was filed under the belated-return provision rather than within the original due date.

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Issues: Whether deduction under section 80IB(11C) of the Income-tax Act, 1961 could be denied merely because the return of income was not filed within the due date under section 139(1), though the return was filed belatedly under section 139(4) and the assessee explained the delay.

Analysis: The deduction claimed was otherwise eligible on the facts, and the only default was non-filing of the return by the due date. Although section 80IB read with section 80AC requires filing of the return within the prescribed time, the delay was explained as arising from reconciliation of receipts and survey-related material. The provision was treated as an incentive provision intended to promote hospital projects, and the explanation for delay was accepted as showing reasonable cause. The denial of deduction on a purely technical lapse was held to be unwarranted in the facts of the case.

Conclusion: Deduction under section 80IB(11C) could not be denied solely for belated filing of the return, and the assessee was entitled to the deduction.

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