TaxTMI 
TaxTMI 
2013 (4) TMI 737
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....2009 declaring income at Rs. 4,66,67,253/-. The Assessing Officer completed the assessment under section 143(3) on 31.12.2010 determining the income of the assessee at Rs. 6,75,24,121/-. While completing the assessment, the Assessing Officer disallowed cost of replacement of machinery of Rs. 2,32,54,110/- treating it as capital expenditure and Rs. 10,90,875/- as expenditure attributable for earning exempt income. The Assessing Officer further denied deduction claimed by the assessee under section 80IA of the Act stating that the assessee claimed deduction by filing revised return on 5.12.2010 which is in the course of assessment proceedings and the assessee should have made this claim under section 80IA through the revised return latest by 31.3.2010 as per the provisions of section 139(5) of the Act being the last day of one year from the end of the assessment year 2008-09. Since the assessee filed revised return on 15.12.2010, the said return was treated as non-est and claim made under section 80IA was denied. With regard to the disallowance of expenditure of Rs. 2,32,54,110/-, the assessee submitted that during this assessment year, it had replaced only certain parts of machinery....
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....hat deduction under section 80IA, 80IAB, 80IB, 80IC, 80ID, 80IE shall be allowed only when the assessee furnishes return on or before the due date specified under section 139(1). The Departmental Representative submits that unless the return is furnished claiming deduction under section 80IA on or before the due date specified under section 139(1), no deduction is allowable. In the assessee's case since it had not claimed deduction under section 80IA in its return filed under section 139(1) and it had claimed deductions only in the revised return filed on 15.12.2010 which is non est and therefore, no deduction is allowable. The Departmental Representative submits that this provision of section 80AC is applicable from the assessment year 2006- 07. 4. The counsel for the assessee, inviting our attention to the submissions made before the Commissioner of Income Tax (Appeals) at page 10 and findings of the Commissioner of Income Tax (Appeals) at para 13 - page 11 of the impugned order, submits that the assessee claimed deduction under section 80IA by filing a revised return under section 139(5) on 31.3.2010 which is within the time limit prescribed. The counsel for the assessee s....
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.... was made for deduction u/s 80lA for Rs. 37,27,928/-. Subsequently the appellant filed a manual return revising the claim of deduction u/s 801A, relying on the decision of the Jurisdictional High Court in the case of M/s. Velayuthaswamy Spinning Mills Ltd. claiming a deduction of Rs. 1,79,79,298/-. The Assessing Officer in the assessment order held that as the manual revised return dated 15.12.2010 through which the assessee had made the claim u/s 80lA is filed beyond due date, he treated it as nonest return and did not give any deduction as claimed by the appellant. However, following the provisions of section 139(5}, the assessee's claim u/s 80lA through the revised return dated 31.03.2010 for Rs. 37,27,928/- should have been allowed by the Assessing Officer as revised return was within time. 14. The Hon'ble Supreme Court of India in the case of NTPC Vs CIT held that "the purpose of assessment proceedings before the Taxing Authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of judicial decision given while the appeal is pending before the Tribunal, it is found that the non-taxable income is taxed or a....
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....iving effect to the appellate order on this issue, the Assessing Officer is directed to verify the claim of the appellant u/s 80lA following the decision of the Hon'ble Jurisdictional High Court in the case of M/s. Velayuthaswamy Spinning Mills Ltd. These grounds of appeals are allowed." 6. As could be seen from the above, the Commissioner of Income Tax (Appeals) has given a finding that the assessee filed a revised return on 31.3.2010 by making a claim for deduction under section 80IA at Rs. 37,27,928/- and this revised return is within the time specified under section 139(5) of the Act. This finding is not challenged by the Revenue. It was the finding of the Commissioner of Income Tax (Appeals) that subsequently the assessee filed a manual return on 15.12.2010 revising the claim for deduction under section 80IA relying on the decision of the jurisdictional High Court in the case of M/s.Velayudhaswamy Spinning Mills Ltd.. The claim was revised to Rs. 1,79,79,298/- as against Rs. 37,27,928/- which was already claimed in the revised return filed as per the provisions of section 139(5) of the Act. Therefore, the Commissioner of Income Tax (Appeals) held that since the assessee....
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....the due date specified under sub-section (1) of section 139.]" 9. A plain reading of section 80AC makes it clear that from the assessment year 2006-07, deduction claimed under section 80IA / 80-IB / 80-IC / 80-ID / 80-IE shall not be allowed unless the assessee furnishes a return on or before due date specified under sub-section (1) of section 139. Nowhere in the section it was provided that unless the assessee makes a claim in its return filed under section 139(1), the said claim is allowable. The section does not speak of a claim to be made in the return filed under section 139(1). The section speaks of filing a return within the time specified under section 139(1) and nothing else. Here the assessee filed a return under section 139(1) within due date specified but no claim was made under section 80IA in such return. However, a revised return was filed under section 139(5) on 30.3.2010 claiming deduction under section 80IA at Rs. 37,27,928/-. The section says unless the assessee files a return under section 139(1) within the due date, deduction under section 80IA / 80-IB / 80-IC / 80-ID / 80-IE shall not be allowed and at the same time section 139(5) provides for filing a revi....