TaxTMI 
TaxTMI 
2026 (5) TMI 816
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....ta, failed to consider the fact that the assessee society has filed its Return of income in response to notice u/s 142(1) and same is a valid return. 03. On the facts and in the circumstances of the case and in law the Ld.Addl. CIT(Appeals)-7 Kolkata failed to substantiate the provisions of Section 80A(5) of the Act. 04 On the facts and in the circumstances of the case and in law the Ld.Addl. CIT(Appeals)-7 Kolkata deduction u/s 80P by invoking section 80AC in as much as the amendment to the said section, bringing deduction u/s 80P within its ambit, is effective from 01/04/2018 and therefore the said provision is not applicable to the relevant assessment year. 05. On the facts and in the circumstances of the case and in law the Ld.Addl. CIT(Appeals)-7 Kolkata failed to verify the deductions claimed u/s 80P of the IT Act in the return of income. 06. The appellant craves for leave to add, alter, amend, delete etc the above grounds of appeal in the interest of natural justice." Additional Ground : 1. On the facts and in the circumstances of the case and in law the ld.CIT(A) erred in passing the order without verifying the service o....
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.... u/s. 80P(2) relying on Section 80A(5) of the Act. Assessing Officer assessed the total income of assessee at Rs. 20,50,660/-. Aggrieved by the assessment order, Assessee filed appeal before the ld.Commissioner of Income Tax (A). As per the faceless scheme the Appeal of the Assessee was assigned to Addl./JCIT (A) -7 Kolkatta. 4.1 The ld.Addl/JCIT(A) upheld the Assessment Order. The relevant paragraph 5.5 of the ld.ADDL/JCIT(A)-7, Kolkata's order u/s 250 of the Act is reproduced here as under : "Afte analysing the assessment order and appellant's submission, it is observed that there is no doubt about the fact that the appellant had not filed return of income within the date specified u/s 139(1) of the Act inspite of it having income exceeding the minimum amount (before allowing any deduction as per the Act) not liable for income tax during the relevant year. The assessing officer had issued notice u/s 142(1) of the Act specifying the date therein by which it was required to file the return. The appellant had received the notice getting a time of 16 days (notice was received by the appellant on 26.12.2017 and it was asked to file return on or before 11.01.2018) to file t....
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.... mentioned in the assessment order paragraph 1 that notice dated 12.12.2017 was served on assessee on 26.12.2017. On perusal of the additional ground and other documents filed by the Assessee, it is noted that Assessee has filed copy of notice dated 12.12.2017 along with the additional ground. Assessee has also filed Screenshot obtained from E-filing portal which shows that notice u/s. 142(1) was available for downloading. The said Screenshot submitted by the Assessee is reproduced here as under : 6.1.1 Thus, it can be observed that the Screenshot obtained from the E-filing Portal which has been submitted by Assessee does show that notice u/s. 142(1) was available for download. It means, notice u/s. 142(1) dated 12.12.2017 was duly served on assessee. 6.1.2 It is also observed from the submission of the Assessee which Assessee filed before the CIT(A) which has been reproduced by him in the order u/s 250 of the Act, that Assessee has accepted receipt of the Notice u/s 142 dated 12/12/2017. The relevant submission of the Assessee as appearing in the order u/s 250 of the Act is reproduced here as under : 1. Vide Ground No. 1 the appellant is challenging the validity of ....
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.... his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : ..................... (4) Any person who has not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier." 7.3 Thus, as per Section 139(4) of the Act, if a person fails to file return of Income within the time permitted u/s139(1) may furnish the return of Income before the end of relevant Assessment Year. Thus, in the case of the Assessee time to file Return u/s 139(4) was upto 31/03/2019. 7.4 In the case of the assessee Notice u/s 142 dated 12/12/2017 was served on the assessee but assessee has not filed Return within the time all....
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....claim of the appellant for deduction under section 80P was disallowed on the ground that the claim for deduction had not been made in a valid return filed by the appellant in terms of the IT Act. It was the stand of the Assessing Officer that in view of the provisions of section 80A(5) of the IT Act, the claim for deduction could not be considered.......... 6. The appellant/assessee has preferred these IT Appeals raising the following substantial questions of law therein: 1. Whether the Tribunal is right in law and facts of the case in not considering the issue of rejection of claim under section 80P by the Lower authorities as hit by section 80 A (5) of the Act as the claim made in a belated return, which issue is now squarely covered in favour of the assessee by the decision of the Honourable Court in the case of Chirakkal Service Co-operative Bank Ltd. v. CIT [2016] 68taxmann.com 298/239 Taxman 417/384 ITR 490 (Ker.). 2. Whether the Tribunal is right in law and facts of the case in not considering the issue/fact that both the assessing officer and the CIT (Appeals) has held that the appellant/assessee is not entitled to any deduction under section 80 P....
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....sessment year on or before the due date specified in section 139(1) of the IT Act. In other words, after 1-4-2018, even if the assessee makes his claim for deduction under section 80P in a return filed within time under sections 139(4), 142(1) or section 148, he will not be allowed the deduction, unless the return in question was filed within the due date prescribed undersection 139(1). Thus, it is clear that the statutory scheme permits the allowance of a deduction under section80P 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 sections139(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 deduction in a return of income filed by....
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.... Section 10A or Section 10AA or Section 10B or Section 10BA or under any provision of the said Chapter - VI A under the heading "C.-Deduction in respect of certain incomes", no deduction would be allowed to him under the said provision. In plain terms, this Sub Section (5) of Section 80A of the Act imposes an additional condition for claim of deduction in relation to income under any of the provisions mentioned therein. Apart from the requirement of fulfilment of individual set of respective conditions for the purpose of claiming the concerned deduction, this plenary condition requires that the claim ought to have made in the return of income by the assessee and if the assessee fails to make such claim in the return of income, such deduction shall not be allowed to him under the relevant provision. Admittedly, in the present case, the Petitioners had not raised any such claim in the return of income. In plain terms, the claim of the Petitioners under Section 80-IB (10) of the Act would be hit by Sub Section (5) of Section 80A of the act. .......................... ............................. What Sub Section (5) of Section 80A of the Act mandates is that, if the....
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....to the impugned Non-est Return. 9.1 Section 143(2) of the Act is reproduced here as under : Assessment. 143. (2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return: 9.2 Section 143(2) stipulates that notice u/s 143(2) shall be issued where a Return has been filed u/s 139 or in response to notice u/s 142. In the case of the Assessee we have already held that the Return of Income was filed beyond the time permitted u/s. 139,142 of the Act, hence it was Invalid, non-est Return of Income. Hence, AO was Right in not issuing Notice u/s 143(2) of the Act. 9.3 We find s....