2025 (10) TMI 407

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....turn of income for AY 2016-17 on 30.12.2017 disclosing a loss of Rs. 5,27,00,890/-. Against the said return of income, the assessment was completed by the DCIT, Kannur (hereinafter called "the AO") vide order dated 27.12.2018 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 3,48,071/-. During the course of assessment proceedings the appellant made a claim for deduction u/s. 80P of the Act. The same was denied by the AO on the ground that no claim was made in the return of income. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO by holding that failure of the assessee to make a claim for deduction u/s. 80P in the return of income disentit....

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....claim in the return of income for deduction u/s. 80P of the Act. The revised return of income, if any, become, non est in the eyes of law, as the original return of income was not filed within the due date prescribed u/s. 139 of the Act. It is equally true that the occasion for making a claim for deduction u/s. 80) does not arise, inasmuch as, the appellant co-operative society returned loss. However, section 80A(5) of the Act mandates that in order to make a claim for deduction u/s. 80P, it is mandatory that the claim should be made in the return of income. The decision of the Hon'ble Jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozihilali Sahararana Sangham (supra) is applicable with full force to t....

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....the statutory scheme permits the allowance of a deduction under Section 80P of the IT Act only if it is made in a return recognised as such under the IT Act, and after 1.4.2018, only if that return is one filed within the time prescribed under Section 139(1) of the Act. As the return in these cases, for the assessment years 2009-10 and 2010-11, were admittedly filed after the dates prescribed under Sections 139(1) and 139(4) or in the notices issued under Section 142(1) and Section 148, the returns were indeed non-est and could not have been acted upon by the Assessing Officer even though they were filed before the completion of the assessment. 12. There is yet another aspect of the matter. The requirement of making the claim for d....