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of <h1>Deduction under Section 80P requires claim in a duly filed return within the prescribed due date, denial upheld.</h1> Deduction under Chapter VI-A for cooperative society activity requires that the claim be made in the return of income and that the return be filed within ... Deduction u/s 80P - bar contained u/s 80A(5) and 80AC - assessee has not filed a return of income - contention of appellant– assessee that sub-section (5) of Section 80A is not attracted in cases where no return of income is filed is too far-fetched and cannot be accepted. HELD THAT:- When sub-section (5) of Section 80A disentitles an assessee from claiming deduction under Chapter VI-A in the absence of such claim being made in the return of income, it would be impermissible to interpret the provision to mean that the statutory bar would not apply where no return of income is filed at all. An assessee who has failed to file a return of income claiming deduction cannot be placed in a better position than an assessee who has filed a return of income but has failed to make such a claim therein. Section 80AC of the Act, in continuation of the mandate under sub-section (5) of Section 80A, requires that the return of income be filed within the due date specified under sub-section (1) of Section 139 of the Act. A conjoint reading of Sections 80A and 80AC mandates that a claim for deduction under Chapter VI-A must be made in the return of income and that such return must be filed within the due date prescribed under sub-section (1) of Section 139 of the Act. If the claim for deduction under Section 80P of the Act is to be extended without filing a return of income, the very mandate of sub-section (5) of Section 80A would be defeated and the provision would be rendered otiose. The Kerala High Court, in Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham [2023 (3) TMI 1055 - KERALA HIGH COURT] as held that the statutory scheme permits the allowance of deduction u/s 80P of the Act only if such claim is made in a return of income recognized under the Act and that, after 01.04.2018, such return must be filed within the time prescribed under Section 139 of the Act. Tribunal has applied the law laid down by the Kerala High Court in the aforesaid decision. Tribunal was justified in concluding that the assessee is not entitled to deduction u/s 80P of the Act. Issues: Whether an assessee who has not filed a return of income for the assessment year is entitled to claim deduction under Section 80P of the Income-tax Act, 1961.Analysis: The Court examined Sections 80A(5) and 80AC of the Income-tax Act, 1961 and the statutory scheme for deductions under Chapter VI-A. Section 80A(5) provides that where an assessee fails to make a claim in his return of income for any deduction under the provisions of Chapter VI-A, no deduction shall be allowed. Section 80AC requires that such returns be furnished within the due date under Section 139(1) for certain assessment years. The Court held that the statutory bar in Section 80A(5) operates to disallow deductions where no claim is made in the return and that this bar cannot be evaded by treating a non-filing assessee as being in a better position than one who filed a return but omitted the claim. The Court further observed that permitting the deduction without a return would render Section 80A(5) otiose and defeat the legislative scheme which, read with Section 80AC, conditions the allowance of Chapter VI-A deductions on a timely claim in a recognized return.Conclusion: The claim for deduction under Section 80P is not allowable where the assessee has not filed a return of income; decision is against the assessee and in favour of the Revenue.
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