Appeal dismissed as revised return valid; Deduction claim not in it not entertained.

The court dismissed the appeal, affirming that the revised return filed under Section 139(5) was valid and replaced the original return. Consequently, the assessee's claim for deduction under Section 10BA, not included in the revised return, was not entertained. The court held that Section 80A(5) applied, requiring the claim to be in the return under consideration by the Assessing Officer, which was the revised return.

---

---

Issues Involved:
1. Deduction under Section 10BA of the Income Tax Act.
2. Validity of the revised return filed under Section 139(5) of the Act.
3. Applicability of Section 80A(5) of the Act concerning the revised return and original return.

Detailed Analysis:

1. Deduction under Section 10BA of the Income Tax Act:
The primary issue was whether the assessee was entitled to a deduction under Section 10BA of the Income Tax Act. The tribunal had previously ruled in favor of the assessee for earlier assessment years, but the claim was withdrawn in the revised return for the assessment year 2007-08 to avoid penalty proceedings. The tribunal's decision in favor of the assessee led to the withdrawal of the revised return and a request to consider the original return for the deduction. The court noted the settled law that there can be no estoppel against law, and if a claim is legitimately allowable, it must be allowed even if withdrawn earlier.

2. Validity of the revised return filed under Section 139(5) of the Act:
The court examined whether the revised return filed under Section 139(5) was valid. The assessee argued that the revised return was nonest as there was no omission or wrong statement in the original return, and it was filed only to avoid penalties. The court referred to various judgments, including the Supreme Court's decision in Mahendra Mills, which emphasized that a revised return replaces the original return and becomes the basis for assessment. The court concluded that once a revised return is filed, the original return is substituted, and the revised return is considered for assessment purposes.

3. Applicability of Section 80A(5) of the Act concerning the revised return and original return:
Section 80A(5) stipulates that if a deduction is not claimed in the return of income, it cannot be allowed later. The assessee contended that the claim should be considered based on the original return. However, the court held that the return referred to in Section 80A(5) is the one under consideration by the Assessing Officer, which, in this case, was the revised return. The court emphasized that the revised return, having been filed under Section 139(5), could not be disregarded, and the claim for deduction under Section 10BA was not admissible as it was not included in the revised return.

Conclusion:
The court dismissed the appeal, holding that the revised return filed under Section 139(5) was valid and replaced the original return. Consequently, the assessee's claim for deduction under Section 10BA, which was not included in the revised return, could not be entertained. The court affirmed that the provisions of Section 80A(5) were applicable, and the claim had to be made in the return under consideration by the Assessing Officer, which was the revised return in this case.

---