2019 (1) TMI 29

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....um of Rs. 27,80,819/- being profits derived from the eligible business u/s.80IA of the Act. The AO however noticed that the return of income has been filed by the assessee for A.Y.2014-15 only on 2.12.2014 which was beyond the due date for filing the return u/s 139(1) of the Act for that Assessment Year. The AO was of the view that as per the provision of section 80AC of the Act any deduction under Chapter-VI A of the Act (Sec.80IA of the Act is part of Chapter VIA of the Act) can be claimed only if the return of income for the relevant assessment year is filed on or before the due date prescribed u/s 139(1) of the Act. Since the assessee has not complied with the aforesaid conditions, the AO refused to allow deduction u/s 80IA of the Act. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts and gains for further two consecutive assessment years, and thereafter; (ii) for the next three consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the "Special Economic Zone Re-investment Allowance Reserve Account") to be created and utilised for the purposes of the business of the assessee in the manner laid down in sub-section (1B) : Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub-section (1) of section 139."....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act. This argument was also considered and rejected by the Special Bench and the Special Bench held that the Hon'ble Supreme Court in the case of Prakash Nath Khanna vs. CIT as reported in 266 ITR 01 (SC) has held that filing of return of income within the time allowed u/s 139(4) of the Income tax Act, 1961 cannot dilute the infraction in not furnishing return in due time as prescribed u/s 139(1) of the Income tax Act, 1961. 8. I am of the view that the ruling of the Special Bench will equally apply to the provisions of Sec.80AC of the Act which are identical to proviso to Sec.10A(1A) of the Act. The provisions of Sec.80AC of the Act reads thus:- "80AC. Deduction not to be allowed unless return furnished.-Where in computing the total in....