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Facts
The assessee filed their return of income for AY 2024-25 declaring a total income of Rs. 1,06,750/-. The return was processed under section 143(1) accepting the returned income, with no adjustments. However, the assessee had not claimed any deduction under section 80P in their return and the return was also not filed within the due date specified under section 139(1).
Held
The Tribunal held that the assessee failed to claim the deduction under section 80P in the return of income and also did not file the return within the due date. Both these conditions are mandatory as per sections 80AC and 80A(5) of the Income Tax Act, 1961. Therefore, the assessee is not eligible for the deduction.
Key Issues
Whether the assessee is eligible for deduction under section 80P when the claim was not made in the return of income and the return was filed after the due date?
Sections Cited
143(1), 250, 80P, 139(1), 80AC, 80A(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
ORDER
PER DR.DIPAK P. RIPOTE, AM:
This appeal filed by the Assessee against the orderof ld.Additional/Joint Commissioner of Income Tax(Appeal), Faridabadpassed under section 250 of the Income Tax Act, 1961 for the A.Y.2024-25dated 30.06.2025 emanating from the order under section 143(1) of the Income Tax Act, 1961 dated 28.12.2024. The Assessee has raised the following grounds of appeal :
[A] “1. The lid. CITIA) erred by making addition/disallowance of income amounting to Rs. 1,06,750/- (Rupees One Lakh Sox Thousand Seven Hundred Fifty Only) to the total income which is ad hoc, arbitrary and was without any basis 2. The Lid. CIT(A) erred without considering the provision of Income Tax Act, 1961 as well as facts of the case and the nature of transactions is not good in law.
The Ld. CIT(A) erred by not granting deduction u/s 80P of the Act, although all the conditions are satisfied the applet and hence, bad in law.
The order appealed against is contradictory and hence not good in law 5. The appellant prays for the relief by deleting the demand on income amounting to s 1.06.750/- (Rupees One Lakh Six Thousand Seven Hundred Fifty Only) which resulted into a demand of Rs. 49,310/- (Rupees Forty-Nine Thousand Three Hundred and Ten Only) made in the order 6. The appellant requests for admission of additional evidences, if any, required its support of its grounds of appeal.
The appellant craves to add, amend, alter or delete any of the grounds of appeal 8. Such other orders are passed as deemed fit and proper” Findings &Analysis :
2. We have heard both the parties and perused the records. In this case, Assessee had filed return of Income for AY 2024-25 on 28/09/2024 declaring Total Income at Rs.1,06,750/-. The due date of filling Return of Income u/s139(1) was 31/07/2024. 2.1 The Return of Income was processed u/s 143(1) of the Income Tax Act 1961 on 28/12/2024 accepting the Returned Income as filed by the Assessee at Rs.1,06,750/-. Thus, there has been no adjustment in the Order u/s 143(1) passed by the department. The relevant part pf the Order u/s 143(1) is scanned and reproduced here under :
2.2 Thus , it can be observed from the above copy of Order u/s 143(1) of the Act that Total Income shown by Assessee in the Return was Rs.1,06,750 and Total Income computed u/s 143(1) is Rs.1,06,750/- and there is no change. 3. Inspite of this the Assessee filed an appeal before Ld.CIT(A). The grounds of appeal filed by the Assessee before Ld.CIT(A) which have been reproduced by the Ld.CIT(A) are as under :
3.1 Ld.CIT(A) has directed the Assessing Officer to treat the Assessee as a cooperative society and calculate the tax accordingly. The Assessing Officer has accordingly calculated the Tax . 4. In this case the Assessee has filed Return of Income declaring Total Income at Rs.1,06,750/-. Assessee had not claimed any deduction u/s 80P of the Act in the Return of Income. The relevant part of the Return of Income is scanned as under :
4.1 We have verified the return of Income filed by the Assessee and noted that Assessee had never claimed any deduction u/s 80P of the Act. Therefore, Assessing Officer has not allowed any deduction u/s 80P of the Act as it was never claimed by the Assessee in the Return of Income.
The Section 80AC and 80A(5) are reproduced here as under which are applicable for deductions. 5.1 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after — (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80- ID or section 80-IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.— Deductions in respect of certain incomes", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139. 5.2 Deductions to be made in computing total income.
80A. (1) In computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C to 80U. (2)…... (3) ………….. (4) ……….. (5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.—Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder.
We have reproduced Section 80A(5) and Section 80AC of the Income Tax . Conjoint reading of these two sections makes it clear that Assessee has to file Return of Income before the due date mentioned in Section 139(1) of the Act and Assessee has to claim the deduction in the Return of Income. 6.1 In the case of the Assessee the Assessee has NOT Claimed any deduction u/s 80P of the Income Tax Act in the Return of Income. Also, the Return of Income was Not Filed within the due date 139(1) of the Act. Thus, assessee has violated both the conditions. Therefore, the Assessee is not eligible for deduction u/s 80P of the Income Tax Act. Accordingly for all the reason mentioned Ground number 3,4,5 raised by the Assessee are dismissed. In these facts and circumstances of the case we uphold the Order u/s 250 of the Act.
7. Ground Number 1 raised by the Assessee is as under : 1. The lid. CITIA) erred by making addition/disallowance of income amounting to Rs. 1,06,750/- (Rupees One Lakh Sox Thousand Seven Hundred Fifty Only) to the total income which is ad hoc, arbitrary and was without any basis This is a factually incorrect Ground as Ld.CIT(A) has not made any addition or disallowance. The Assessing Officer in order u/s 143(1) has accepted the Returned Income filed by the Assessee. Hence Ground Number 1 is dismissed.
Ground Number 2: Ld.CITA) has considered the Returned income of the Assessee and noted that the Assessing Officer has not made any disallowance u/s 143(1). Hence, there is no merit in this ground. Hence Ground number 2 is dismissed.
Ground Numbers 6,7,8:
10. In the result Appeal of the Assessee is Dismissed. Order pronounced in the open Court on 30th March, 2026.