2022 (11) TMI 875 - AT - Income Tax

Deduction u/s. 80IC - belated return filled - Deduction not to be allowed unless return furnished - audit report in form 10CCB for claim of deduction u/s. 80IC has been filed on 21-09-2015 i.e. within the prescribed time limit for filing return u/s. 139(1) - HELD THAT - As in the instant case the assessee has failed bring forth any such communication or any order condoning such delay in filing return of income before the due date specified u/s. 139(1) of the Act. We, therefore, under the given facts and circumstances of the case are of the considered view are that since the assessee has filed belated return, the claim of deduction under section 80IC of the Act cannot be entertained/allowed as the assessee is directly hit by provisions of section 80AC - We, thus, fail to find any infirmity in the finding of the CIT ( A ) denying assessee s claim of deduction u/s. 80IC - However, if deemed fit, the assessee can still approach the Board for consideration of its case and if the Board finds merit in the reason for genuine hardship of the assessee for filing the return belatedly the case of the assessee may be considered sympathetically. If such permission is granted by the Board, then the AO can allow claim of deduction of the assessee u/s.80IC of the Act in accordance with law - Appeal of assessee is dismissed .

Issues Involved:
1. Disallowance of deduction under section 80IC or 80IE for belated filing of return.
2. Dismissal of appeal by CIT(A) without considering relevant grounds and submissions.
3. Denial of deduction u/s 80IC or 80IE without authorization from CBDT.
4. Rejection of deduction claim due to late filing of return under section 139(1).
5. Assessment of income despite eligibility for deduction under section 80IC or 80IE.
6. Additional ground/grounds requested by the appellant.

Analysis:

1. The appellant challenged the disallowance of deduction under section 80IC or 80IE due to the belated filing of the return. The Assessing Officer (AO) rejected the claim based on non-compliance with the due date prescribed under section 139(1) of the Income-tax Act. The appellant contended that the claim should be allowed even for belated returns. The Tribunal noted that while the return was filed late, the statutory requirement of filing the return before the due date is crucial for claiming deductions under section 80AC. The Tribunal emphasized the importance of timely compliance and highlighted the provision's clarity, stating that genuine hardship does not override the statutory mandate. The Tribunal suggested that the appellant could seek relief from the Central Board of Direct Taxes (CBDT) for genuine hardship cases.

2. The appellant raised concerns regarding the dismissal of the appeal by the CIT(A) without considering relevant grounds, submissions, and prayers. The Tribunal observed that the CIT(A) upheld the assessment order without seeking authorization or instructions from the CBDT, as requested by the appellant. Despite the appellant's application before the authority, the CIT(A) sustained the assessment order, leading to the denial of deductions under section 80IC or 80IE. The Tribunal highlighted the need for thorough consideration of all aspects before confirming additions or disallowances.

3. The Tribunal addressed the issue of denial of deduction under section 80IC or 80IE without explicit authorization from the CBDT. The appellant argued that the CIT(A) erred in sustaining the assessment order without taking into account the application filed before the CBDT. The Tribunal emphasized the importance of following due process and obtaining necessary approvals before rejecting deduction claims, underscoring the significance of compliance with procedural requirements.

4. The Tribunal examined the rejection of the deduction claim due to the late filing of the return under section 139(1). The appellant's belated return led to the disallowance of the deduction under section 80IC. The Tribunal reiterated the statutory obligation to file returns within the specified timeline to claim deductions, emphasizing the stringent requirements outlined in the Income-tax Act.

5. The Tribunal reviewed the assessment of income despite the eligibility for deduction under section 80IC or 80IE. The appellant contested the assessment of income at a higher amount, arguing that the entire assessed income was entitled to deductions under the relevant sections. The Tribunal noted the discrepancy between the assessed income and the claimed deductions, emphasizing the need for accurate assessment based on applicable provisions.

6. The appellant sought permission to present additional grounds or modify existing grounds during the hearing. The Tribunal acknowledged the appellant's request, highlighting the procedural flexibility in allowing additional grounds or modifications before or during the hearing. The Tribunal underscored the importance of ensuring a fair opportunity for the appellant to present their case effectively.

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