The Income Tax Appellate Tribunal considered whether an assessee...

The Income Tax Appellate Tribunal considered whether an assessee can claim deduction under Chapter VI-A of the Income Tax Act, 1961 for the first time in the return filed in response to a notice issued u/s 153A pursuant to a search u/s 132. Relying on the Supreme Court's decision in Abhisar Buildwell (P.) Ltd., the Tribunal held that in unabated or concluded assessments, the assessee cannot make any fresh claim of deduction in the return filed u/s 153A, as the Assessing Officer cannot make additions without incriminating material found during the search. For abated assessments, the assessee can claim all deductions by filing the return within the timeline prescribed u/s 153A, failing which deductions cannot be claimed u/s 80A. Claiming deduction u/s 80IA(4) requires filing the return before the due date u/s 139(1) and furnishing the audit report u/s 44AB, as per Section 80IA(7). The Tribunal relied on Supreme Court decisions in Dilip Kumar and Company and PCIT vs. Wipro Ltd. to interpret deduction provisions strictly in favor of revenue. Therefore, the Tribunal concluded that the assessee cannot claim fresh deductions under Chapter VI-A for the first time in the return filed u/s 153A for.

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