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2013 (2) TMI 320 - HC - Income TaxBelated return u/s 139(4) Deduction u/s 80IB Deduction u/s 80IC Construction of a fiscal statute - Assessee contended that due date of furnishing return has been specified under sub-section (1) of Section 139, in sub-section (4) of Section 139 permission has been granted to furnish the return even after expiry of the due date for furnishing return specified under sub-section (1) of Section 139 Held that - In the matter of construction of a fiscal statute, one is required to read the words used by the Legislature rather than go into the question of reasonableness, rationality and beneficial ness of a part of the statute. In the event, within the plain words used in the statute, a person is entitled to the benefit granted by the statute, he would be entitled to the same, but, if not, he would not be entitled to the benefit, thus, given Section 80AC, it has been provided that only when the return has been furnished on or before the due date specified under sub-section (1) of Section 139, the assessee concerned will be entitled to the deductions admissible under Section 80IB or Section 80IC. In favour of revenue
Issues: Interpretation of Section 80AC of the Indian Income Tax Act, 1961 in relation to deductions under Section 80IB and 80IC for late filing of return.
Analysis: 1. The judgment dealt with the interpretation of Section 80AC of the Indian Income Tax Act, 1961, which stipulates that deductions under Section 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, or 80-IE will not be allowed unless the assessee furnishes a return of income on or before the due date specified under Section 139(1) of the Act. 2. The appellant in this case had filed the return after the due date specified under Section 139(1) of the Act, resulting in the denial of deductions claimed under Section 80IB and 80IC. The appellant contended that the time to furnish the return stands extended under Section 139(4) of the Act, as the return was filed within the extended period. 3. Section 139(4) of the Act allows a person who has not furnished a return within the time allowed under Section 139(1) to furnish the return before the expiry of one year from the end of the relevant assessment year. However, the due date specified under Section 139(1) is not extended by Section 139(4), providing only an extension of time to discharge the obligation under Section 139(1). 4. The court emphasized that the due date specified under Section 139(1) of the Act is not extended by Section 139(4), and therefore, the appellant was not entitled to the deductions under Section 80IB or 80IC as claimed. The court highlighted that in the construction of a fiscal statute, one must adhere to the plain words used by the Legislature, and the benefits under Sections 80IB and 80IC are only available if the return is furnished on or before the due date specified under Section 139(1). 5. The court rejected the appellant's argument that the beneficial nature of Sections 80IB and 80IC should lead to a liberal interpretation of Section 80AC. It emphasized that adherence to the statutory provisions is crucial, and the appellant could not claim the deductions as the return was filed after the due date specified under Section 139(1). 6. Ultimately, the court upheld the decisions of the Appellate Authority and the Tribunal, dismissing the appeal and ruling that the appellant was not entitled to the deductions under Section 80IB and 80IC due to the late filing of the return.
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