TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 722
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....he Act. In the course of assessment proceedings, the Assessing Officer while examining assessee's claim of deduction under section 80IB(10) of the Act, having found that conditions of section 80AC of the Act have been violated, issued notice requiring the assessee to show cause as to why the deduction claimed under section 80IB(10) of the Act should not be disallowed. Of course, in the said show cause notice, the Assessing Officer alleged various violation of various other conditions prescribed under section 80IB(10) of the Act. To ascertain the correct facts, the Assessing Officer also conducted independent enquiry with Thane Municipal Corporation. In response to the said show cause notice, the assessee filed its reply justifying the deduction claimed under section 80IB(10) of the Act. As regards non-compliance to the provision of section 80AC of the Act, the assessee submitted that the said provision is directory and not mandatory. After considering the submissions of the assessee in totality, the Assessing Officer observed that as per section 80AC of the Act, for claiming deduction under section 80IB(10), the assessee must file its return of income within the due date of filing ....
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....ion of section 80AC of the Act is mandatory has been upheld by the Hon'ble Calcutta High Court in CIT v/s Shelcon Properties Pvt. Ltd., 370 ITR 305 (Cal.). Further, he submitted, when the language used in the provision is plain, simple and unambiguous, it cannot be interpreted in a different manner to provide benefit to the assessee. He submitted, the provisions contained under a taxing statute have to be interpreted strictly as per the language used therein. He submitted, if there is a scope for more than one interpretation in respect of a deduction/exemption provision, the interpretation favourable to the Revenue has to be adopted. In this context, he relied upon the decision of the Hon'ble Supreme Court in Commissioner of Customs (Import) v/s Dilip Kumar & Co. & Ors., C.A. no.3327/2007, dated 30th July 2018. Thus, he submitted, since the assessee has not fulfilled the condition of section 80AC of the Act, it is not eligible to claim deduction under section 80IB(10) of the Act. Further, in support of his contention, the learned Departmental Representative relied upon the following decisions:- i) CIT v/s Shelcon Properties Pvt. Ltd., [2015] 370 ITA 305 (Cal.); ii) Umeshch....
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....ction under section 80IB(10) of the Act due to non-fulfillment of the condition of section 80IC of the Act, it is the claim of the assessee that the condition imposed under section 80AC of the Act is directory and not mandatory. Therefore, if the assessee files the return of income within the time permitted under sub-section (4) and (5) of section 139 of the Act, it will be eligible for deduction under section 80IB(10) of the Act. 10. On a reading of section 80AC of the Act, the impression one gets is, the language used in the provision is plain and simple and leaves no room for any doubt or ambiguity. Therefore, in our view, the aforesaid provision has to be interpreted in the touchstone of the ratio laid down in the Constitution Bench decision of the Hon'ble Supreme Court in case of Dilip Kumar & Co. & Ors. (supra). The Hon'ble Supreme Court, after taking judicial note of a catena of decisions of the Hon'ble Supreme Court as well as different High Courts on the issue of interpretation of taxing statute, and more particularly, interpretation of charging and exemption provisions, have held that when the words in a statute are clear, plain and unambiguous and only one m....
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.... the person claiming the benefit of such notification must satisfy all the conditions precedent for availing exemption. The question whether a particular subject falls within the exemption clause has to be strictly construed. Once, the ambiguity or doubt is resolved by interpreting the applicability of exemption clause strictly, the Court may construe the exemption clause liberally. Thus, a person claiming exemption has to establish that his case squarely falls within the exemption clause. 12. If we apply the principle laid down in the aforesaid decision of the Hon'ble Supreme Court to the facts of the present case, it is quite clear that as per the provision of section 80AC of the Act, which is very much clear and unambiguous in its expression, for claiming deduction under section 80IB(10) of the Act, it is a mandatory requirement that the assessee must file its return of income within the due date prescribed under section 139(1) of the Act, notwithstanding the fact whether or not the assessee has actually claimed deduction in the said return of income. Once the return of income is filed within the due date prescribed under section 139(1), even without claiming deduction und....