2026 (1) TMI 1484

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....e respondent. 2. This appeal is filed by the assessee challenging the order passed by the Income Tax Appellate Tribunal, "B" Bench, Bengaluru (for short, "the Tribunal") in ITA No. 969/Bang/2023 dated 02.01.2024, relating to the Assessment Year 2017-18. The assessee is assessed in the status of an Association of Persons (AOP). 2.1 The assessee did not file a return of income for the Assessment Year 2017-18. A notice under Section 142(1) of the Income Tax Act, 1961 (for short, "the Act") was issued calling upon the assessee to file the return of income. Though the notice was duly served, the assessee failed to comply with the same. Consequently, the Assessing Officer completed the assessment under Section 144 of the Act and assessed th....

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....rom 01.04.2018, i.e., from the Assessment Year 2018-19. Since the assessment year involved in the present case is 2017-18, Section 80AC of the Act is not applicable. 3.3 It is further submitted that Sections 80A(5) and 80AC of the Act operate in distinct fields. Therefore, learned counsel contends that the Tribunal committed an error in denying the deduction under Section 80P of the Act by applying Section 80A(5) of the Act. 4. Sri Sushal Tiwari, learned Standing Counsel appearing for the respondent, submits that sub-section (5) of Section 80A of the Act, mandates that a claim for deduction under Section 80P of the Act must be made in the return of income. It is further submitted that Section 80AC of the Act mandates the filing of a r....

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....e assessee making a claim in the return of income, the Assessing Officer is not required to extend such benefit in the absence of a return of income. 6.3 In this context, it is relevant to extract the provisions of Sections 80A(5) and 80AC of the Act. "80A(5). Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C-Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder". "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 Apri....

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....an an assessee who has filed a return of income but has failed to make such a claim therein. 9. Section 80AC of the Act, in continuation of the mandate under sub-section (5) of Section 80A, requires that the return of income be filed within the due date specified under sub-section (1) of Section 139 of the Act. A conjoint reading of Sections 80A and 80AC mandates that a claim for deduction under Chapter VI-A must be made in the return of income and that such return must be filed within the due date prescribed under sub-section (1) of Section 139 of the Act. 9.1 If the claim for deduction under Section 80P of the Act is to be extended without filing a return of income, the very mandate of sub-section (5) of Section 80A would be defeate....