2025 (11) TMI 803

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....2. The assessee has raised the following grounds of appeal :- "1.1 The order passed by u/s.250 passed on 28.01.2025 for A.Y. 2018-19 by NFAC, [CIT(A)], Delhi (for short CIT(A)" upholding the disallowance made by A.O. of deduction u/s 80P(2) of Rs. 7,21,430/- on account of non-filing of ITR within the prescribed time u/s 139(1) is wholly illegal, unlawful and against the principles of natural justice. 2.1 The ld. CIT(A), has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued mainly on account of failure of the tax consultant. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by NFAC. 3.1 The ....

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....ssee submitted that since its income after deduction u/s 80P was below the taxable limit, return filing was not mandatory. The Assessing Officer, however, held that under the sixth proviso to section 139(1), if the gross total income before the exemption u/s 80P exceeds the taxable limit, the assessee is mandatorily required to file its return within the prescribed time. Since the assessee failed to do so, the deduction u/s 80P was disallowed and tax was computed accordingly. 4. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the disallowance on similar reasoning as made by the Assessing Officer and passed an exparte order, as the assessee did not respond to notices ....

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....fficer and upheld by the Ld. CIT(A) is not justified, as the requirement of filing the return within the due date to claim deductions under Chapter VIA was only introduced through the amendment to section 80AC by the Finance Act, 2018. The relevant portion of section 80AC, as amended, reads as under: 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80IA or section 80IAB or section 80IB or section 80IC or section 80ID or section 80IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this....

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....laimed under sec.80P, if the return is furnished beyond the due date specified under sub-section (1) of section 139 of the Act. This enabling provision was introduced into the Act vide Finance Act, 2021 w.e.f. 01.04.2021. Supporting Case law The Hon'ble Supreme Court in the case of PCIT Vs Wipro Ltd (2022) 140 taxmann.com 223 has disregarded arguments of the assessee and decided appeal in favour of the Revenue on the following counts: i) The exemption provisions are to the complied with strictly and literally and the same cannot be construed as procedural requirement. ii) Filing a revised return u/s 139(5) and taking a contrary stand and/or claiming the exemption which was specifically not claimed ear....