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TMI Blog2011 (12) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... l. We therefore find it convenient to dispose off both the appeals by a consolidated order. 2. In ITA No. 235/ASR/2011, following grounds of appeal have been taken:- 1. That ld. CIT(A), Amritsar has grossly erred in confirming the action of ITO, Ward 5(1), Amritsar in disallowing a sum of ₹ 58,90,160/- u/s 80IB of Income-tax Act, 1961 on the ground that return of income was filed beyond 31st October, 2006. 2. That both ld. CIT(A), Amritsar and ITO, Ward 5(1), Amritsar have failed to appreciate that the accounts of the assessee were complete and audited u/s 80IB and 44AB of Income-tax Act, 1961 and the Audited Accounts were filed with the department before 31st October, 2006. 3. That both ld. CIT(A), Amritsar and ITO, Ward 5(1), Amritsar have failed to appreciate that true import of provisions of section 80AC of Income-tax Act, 1961 read with section 139(1) fourth proviso of Income-tax Act, 1961. 4. That both ld. CIT(A), Amritsar and ITO, Ward 5(1), Amritsar have failed to appreciate that provisions of section 80IB were incentive provisions and the same were to be liberally construed in furtherance of the objective of promoting the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of the provisions of section 80AC of the Act. 5. On appeal, the ld. CIT(A) has endorsed the order of the AO with the following observations:- 6 I have carefully considered the appellant's written submissions and also gone through the AO's assessment order under appeal. According to the provisions of section 80AC as well as in accordance with the fourth proviso to Section 139 of the Income-tax Act, 1961, it is incumbent upon every person being an individual or a HUF to furnish its return of income, if his total income without giving effect to the provisions of section 10A, or Section 10B or Section 10BA or Chapter VIA exceeded the maximum amount which is not chargeable to income-tax, shall on or before the due date furnish a return of his income in the prescribed form and verified in the prescribed manner and setting forth such other particulars as maybe prescribed. For the sake of ready reference, provisions of section 80AC are reproduced below: 80AC Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year any deduction is admiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )which also prohibited, deduction/exemption if the return of income is not furnished on or before the due date specified u/s 139(1) of the Act relying upon the decision of this Tribunal in Asstt. CIT v. Dhir Global Industrial (P.) Ltd [2011] 43 SOT 640/8 taxmann.com 208 (Delhi). He submitted that the provisions of section 139(1) were directory in nature. 8. His next submission was that the assessee was entitled to make legal prayer on any stage of the assessment proceedings and even before the appellate authority and therefore the return of income filed after the time limit specified in Section 139(1) should have been taken into account as very return and the claim of the assessee for deduction u/s 80IB of the Act allowed according. In support of the aforesaid proposition, the ld. authorised representative for the assessee relied upon the following judgments: 1 ITO v. VXL India Ltd. [2009] 312 ITR 187 (Guj.) 2 CIT v. Gujarat Oil Allied Industries [1993] 201 ITR 325 (Guj.) 3 CIT v. Magnum Export (P.) Ltd [2003] 262 ITR 10/130 Taxman 702 (Cal.) 4 CIT v. Mayur Foundation [2005] 274 ITR 562 (Guj.) 5 Zenith Processing Mills v. CIT [1996] 219 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 80IB is hit by the provisions of Section 80AC was prohibited deduction u/s 80IB unless the return of income is furnished before the due date specified in sub-sec (1) of Section 139 of the Act. 13. Bare perusal of Section 80AC reveals that it had not only contained the time limit of claim for deduction u/s 80-IB is required to be filed but also the consequences that would follow if the return of income containing such claim/deduction is not filed before the expiry of due date specified u/s 139(1) of the Act. Thus Section 80AC of the Act provides the consequences that would follow if the return of income containing claim us 80-IB is not furnished before the due date specified in Section 139(1). The language of Section 80AC in this behalf is quite clear. It is well settled principle of construction o statute that the statutory enactment must obviously be constitute according to the plain meaning and that the scope of legislation on the intention of legislation cannot be enlarged when the language of the provisions is plant and unambiguous. In our view the language of Section 80AC is quite plain and unambiguous as much as it is specifically provides for the consequences that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue date specified in Section 139(4) of the Act and therefore return of income furnished by him should be taken as one furnished u/s 139(1). We have carefully perused the judgment of Hon'ble jurisdictional High Court, we find that the aforesaid issue has been rendered in the context of the provisions of section 54 of the Act. We have also perused the provisions of section 54 and find that they materially differ for those of Section 80AC. Careful perusal of Section 54 shows that it does not provide for the consequences that would follow. Section 54 merely directs the assessee without providing for the consequences that would follow if that Act was not done before the specified time limit. Section 80AC, on the other hand, specifically provides for the consequences that would follow if the return of income is not furnished before the due date specified in Section 139(1) of the Act. Secondly fourth proviso to Section 139(1) specifically requires inter-alia of Chapter VIA exceeds the maximum amount which is not chargeable to Income-tax. The fourth proviso has been inserted in the Income-tax Act, 1961 w.e.f. 1.4.2006 and is specified to the claim of deduction u/s 10A, 10B or Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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