2022 (8) TMI 579 - AT - Income Tax

Deduction u/s 80IA(4)(iv)(a) - deduction was inadvertently not claimed in the return of income filed - only contention of the assessee is that there are various decisions to the effect that the assessee is entitled to claim the deduction before appellate authorities if the same was not claimed in the original return or of income but was claimed during the assessment and the appellate proceedings - if the assessee has not claimed deduction under section 80-IA of the Act in the return of income, can it be permitted to claim the same during the course of assessment proceedings by way of filing a revised computation in response to notice issued by the assessing officer HELD THAT - It is well-settled law and when the language of the Statute is plain and unambiguous, the same represents the legislative intent. In the instant case, the language of section 80A(5) of the Act is plain and unambiguous in its wordings and the same is not open to interpretation. It is an undisputed fact, that the assessee did not make a claim for deduction under section 80-IA of the Act in its return of income. The said claim was made by way of filing revised computation during the course of assessment proceedings. While we are aware of the fact that in various cases it has been held that beneficial provisions should be construed liberally and legitimate claim of the assessee should be allowed, even if the assessee has failed to claim the same in its return of income. In our considered view, if the language of the Statute is plain and unambiguous and is not open to interpretation so that two views may be possible, then the same represents the legislative intent. Here, section 80A(5) of the Act states that for an assessee to be able to make a claim under Chapter -VI of the Act, such a claim has to be made in the return of income. In view of the plain language of the Statute, and respectfully following the decision in the case of Rachna Infrastructure (P.) Ltd. 2022 (3) TMI 256 - GUJARAT HIGH COURT we are of the view that Ld. CIT(Appeals) has not erred in facts and in law in confirming the order of the assessing officer. In the result, appeal of the assessee is dismissed

Summary

Issues Involved:
1. Rejection of the claim under section 80IA of the Income Tax Act.
2. Whether a new claim can be made during assessment proceedings.
3. Consideration of a revised statement filed by the appellant.

Issue-wise Detailed Analysis:

1. Rejection of the Claim under Section 80IA of the Income Tax Act:
The primary issue was the rejection of the appellant's claim for deduction under section 80IA of the Income Tax Act. The appellant had not claimed this deduction in the original return filed on 16.09.2011 but later filed a revised computation during assessment proceedings. The Assessing Officer (AO) disallowed the claim because the revised computation was filed beyond the stipulated date as per Section 139(5). The AO referenced the Supreme Court's decision in Goetz (India) Limited vs. Commissioner of Income Tax, which mandates that claims for deductions must be made through a revised return. Additionally, the AO noted that the audit report required under section 80IA(7) was not submitted on time, further invalidating the claim.

2. Whether a New Claim Can Be Made During Assessment Proceedings:
The appellant contended that deductions could be claimed during assessment or appellate proceedings even if not claimed in the original return, citing various judicial decisions. However, the Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO's decision, emphasizing the statutory requirements under sections 80A(5) and 80IA(7). These sections clearly state that deductions must be claimed in the return of income and that the necessary audit report must be furnished on or before the due date of filing the return. The CIT(A) distinguished the appellant's cited cases based on these statutory requirements and upheld the rejection of the claim.

3. Consideration of a Revised Statement Filed by the Appellant:
The appellant argued that the AO should have considered the revised statement filed during the assessment proceedings. However, the CIT(A) and the Tribunal both noted that the statutory provisions under section 80A(5) were explicit in requiring the claim to be made in the return of income. The Tribunal referenced several judicial decisions, including those from the Gujarat High Court and other ITAT benches, which supported the view that claims not made in the original return could not be entertained later. The Tribunal concluded that the language of section 80A(5) was clear and unambiguous, leaving no room for interpretation that would allow the appellant's claim.

Conclusion:
The Tribunal dismissed the appeal, affirming that the appellant's failure to claim the deduction in the original return and the untimely submission of the audit report precluded the allowance of the deduction under section 80IA. The statutory requirements under sections 80A(5) and 80IA(7) were decisive, and the Tribunal followed the legal precedents that reinforced these provisions. The appeal was thus dismissed, and the order was pronounced in the open court on 10-08-2022.