2020 (5) TMI 718 - AT - Income Tax

Deduction claimed u/s 80IB(10) - return of income has not been filed within the due date u/s 139(1) as required by section 80AC - sufficient and reasonable cause occurred in filing the return late - HELD THAT - It is sufficiently clear from the assessee s averments that the learned lower authorities have declined to entertain its Section 80IB(10) deduction claim for the reason that the same had not been raised in its return filed within the due date prescribed under Section 139(1) of the Act. And that the learned lower authorities quote Sections 80A(5) r.w.s. 80AC of the Act. Case law in EBR Enterprises vs. Union of India 2019 (6) TMI 484 - BOMBAY HIGH COURT .holds that filing of such return under Section 139(1) for claiming Chapter VIA deduction is very much a mandatory condition. We thus adopt stricter direction in light of Commissioner of Customs vs. Dilip Kumar 2018 (7) TMI 1826 - SUPREME COURT and affirm learned lower authorities action rejecting the impugned deduction claimed. Our attention to the assessee s petition dated 23.04.2022 that it had filed an application before the CBDT under Section 119(2)(b) seeking condonation of delay in filing the above statutory return. He clarified that the Board had rejected the same on 11.10.2019. And that the assessee s Writ Petition challenging the same is pending for final adjudication before the hon'ble jurisdictional high court. He therefore sought adjournment to await its final outcome. We find no merit in assessee s instant adjournment request as its return is found to have been filed well beyond the due date prescribed in Section 139(1) of the Act. The assessee s foregoing pleas fail accordingly. Assessee appeal dismissed.

Summary

Issues:
1. Disallowance of claim made under Section 80IB(10) for housing project completed under joint venture agreement.
2. Denial of Section 80IB(10) claim on the grounds of filing return after the due date prescribed under Section 139(1) of the Income Tax Act.

Analysis:
1. The appellant contested the disallowance of the claim made under Section 80IB(10) for a housing project completed under a joint venture agreement. The appellant argued that the claim was in respect of a project completed jointly with another entity, and the denial of the claim was unjustified. The appellant highlighted that the joint venture arrangement should not affect the eligibility for the Section 80IB(10) deduction. However, the authorities rejected the claim, stating that certain certificates were obtained in the name of one of the associates, leading to the assumption that the projects were separate undertakings. The appellant's contentions were based on the joint completion of the project, but the authorities did not accept this argument, resulting in the disallowance of the claim under Section 80IB(10).

2. The second issue revolved around the denial of the Section 80IB(10) claim due to the late filing of the return beyond the due date specified under Section 139(1) of the Income Tax Act. The appellant sought to justify the delay by filing an application for condonation of the delay before the CBDT under Section 119(2)(b). However, the application was rejected by the Board, and the appellant's subsequent writ petition challenging the rejection was pending before the jurisdictional high court. Despite these efforts, the authorities maintained that the return was filed beyond the prescribed due date, emphasizing the mandatory nature of filing the return within the specified timeline for claiming deductions under Chapter VIA. Citing relevant case law, the authorities upheld the decision to reject the deduction claimed under Section 80IB(10) due to the late filing of the return.

In conclusion, the appellate tribunal upheld the lower authorities' decision to dismiss the appellant's appeal, emphasizing the strict adherence to statutory timelines for filing returns and claiming deductions under the Income Tax Act. The judgment highlighted the importance of complying with procedural requirements, such as filing returns within the prescribed due dates, to avail of tax benefits and deductions under the law.