2015 (8) TMI 647

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tronic Medical Diagnostic Equipments. The assessment under section 143(3) of the Act was completed on 30.12.2011 at a total income of Rs. 63,06,820/- by the Addl. CIT, Range-I I Chandigarh. 3. While examining the assessment records, it was noticed that Assessing Officer did not examine the issue of applicability of claim of deduction under section 80IC of the Act to the tune of Rs. 2.29 Cr. The return of income filed by the assessee was not in time and was, therefore, hit by the mandatory provisions of Section 80AC. The Assessing Officer has allowed the claim of assessee by not applying the provisions of law and without examining the facts of the case. It was, therefore, found that the assessment order is erroneous as well as prejudicial t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ubsequent year, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC (or section 80-ID or section 80-IE], no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139." 5. A bare perusal of Section 80AC reveals that it not only contains the time limit of making the claim for deduction u/s 80IC i.e. the time within which the return is required to be filed, but also the consequences that would follow if the return of income containing such claim/deduction is not filed before the expiry of due date specified u/s 139(1) of the Act. Thus Section 80AC of the Act provides for the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....isions of section 80AC. 7. Therefore, it is well settled by the Legislature, that if the assessee wants to avail deduction u/s 80IC, he has to necessarily furnish his return of income containing such claim before the due date specified in Section 139(1). The language of Section 80AC is negatively worded in as much as it provides in clear terms that deduction u/s 80IC shall not be allowed if the return of income containing such claim is not furnished by the due date specified in Section 139(1). In the face of such clear language of Section 80AC, there can be no hesitation in holding that the provisions of section 80AC are mandatory in nature and therefore failure to furnish the return of income filed in due date specified in Section 139(1) ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....contained therein. 10. Further, the case law quoted by the assessee in support of its claim is distinguishable on facts. The issue at hand pertains to a positive claim of a benefit available under the Law for which certain conditions including that u/s 80AC have been strictly laid down. It is the general position of the Law that for any right or benefit to be claimed, the claimant has to meet certain mandatory conditions. The case Law referred to, applies to section 80 of the Act which deals with carry forward of losses. The subject matter of these two provisions of the Law is entirely different and any further discussion on this aspect shall be a futile digression. 11. In fact, one of the relevant case precedents is available in the orde....