2022 (11) TMI 970 - AT - Income Tax

Deduction u/s. 80IE - Claim denied as the return of income filed by the assessee was belated - Lower authorities have denied the claim of assessee applying the provisions of section 80AC - HELD THAT - On going through the provisions of clause (b) and ( c) of sub-section (2) of section 119 window is open for the assessee to approach the Board under the above stated provisions of said section and if such delay is condoned even if the return is filed belated, the assessee would be entitled to claim the deduction u/s. 80IE of the Act. Before us no such order of the CBDT has been placed, which could show that such delay in filing the return has been condoned. Assessee should have moved an application to the Central Board of Direct Taxes ( short, the Board ), which may if considering desirable or expedient so to do for avoiding genuine hardship in any case or clause of cases either may authorize any Income-tax authority not being the Commissioner (Appeals), to admit such application and deal with the same in accordance with law or itself pass a general or special order and if the assessee s application is accepted in the manner provided above, then the deduction under Chapter IV/VIA may be allowed. In the instant case the assessee has failed to 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). 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 of the Act. We, thus, fail to find any infirmity in the finding of the ld. CIT(A) denying assessee s claim of deduction u/s. 80IC of the Act. - Decided against assessee.

Summary

Issues:
- Appeal against order of Ld. Commissioner of Income-tax (Appeals) for assessment year 2016-17.
- Denial of deduction u/s. 80IE of the Act due to belated filing of return.
- Interpretation of section 80AC of the Act.
- Availability of relief under section 119(2)(c) for condoning delay in filing return.
- Consideration of decisions supporting deduction in case of belated returns.

Analysis:

1. The appeal was filed against the order of the Ld. Commissioner of Income-tax (Appeals) for the assessment year 2016-17. The assessee challenged the denial of deduction u/s. 80IE of the Act due to the belated filing of the return.

2. The key issue revolved around the interpretation of section 80AC of the Act, which mandates that deductions under certain sections, including 80IE, are not allowed unless the return is furnished before the due date specified u/s. 139(1) of the Act. The assessee's return was filed belatedly, leading to the denial of the deduction.

3. The Tribunal analyzed the provisions of section 80AC and emphasized the mandatory requirement of filing the return within the specified due date for claiming deductions like 80IE. Despite potential reasonable causes for the delay, the Tribunal highlighted that specific provisions under section 119(2)(c) provide a window for condoning such delays to avoid genuine hardship.

4. The Tribunal noted that the assessee did not present any communication or order from the Central Board of Direct Taxes (CBDT) condoning the delay in filing the return. Without such authorization, the deduction under section 80IE could not be allowed.

5. While the assessee cited various decisions supporting deductions in cases of belated returns, the Tribunal reiterated the clear provisions of the Income Tax Act, particularly section 80AC. The Tribunal concluded that the decisions referenced by the assessee did not alter the straightforward requirement of filing the return within the due date for claiming deductions like 80IE.

6. Ultimately, the Tribunal upheld the decision of the Ld. Commissioner of Income-tax (Appeals) to deny the deduction under section 80IE due to the belated filing of the return. The Tribunal suggested that the assessee could still approach the Board for consideration if genuine hardship existed, and the Board might authorize the deduction if deemed appropriate.

7. Grounds 1 to 5 raised by the assessee were dismissed, with the Tribunal finding no infirmity in the decision of the Ld. Commissioner of Income-tax (Appeals). Grounds 6 and 7 were considered consequential and general, requiring no further adjudication.

In conclusion, the appeal against the denial of deduction u/s. 80IE of the Act due to the belated filing of the return was dismissed by the Tribunal, emphasizing the importance of complying with statutory requirements for claiming deductions under the Income Tax Act.