AUDYOGIK PRASHIKSHAN SAST KARMACHARI SAHAKARI PATSANSTHA LTD,INDUSTRIAL ESTATE, MADHAVNAGAR ROAD, SANGLI vs. INCOME TAX OFFICER WARD 5, NEAR APPASAHEB BIRNALE PHARMACY COLLEGE

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M :

This is an appeal filed by the assessee against the Order of Addl/JCIT(A)-1, Guwahati passed u/s 250 of the Income Tax Act 1961 (Act) for AY 2021-22 emanating from Order u/s 143(1) of the Act dated 13/12/2024 disallowing Assessee’s claim of deduction u/s 80P of the Act.

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25/06/2025- No one appeared 10/07/2025 -Mr.Amit Shintre Appeared virtually and requested for Adjournment. 19/08/2025- No one appeared 09/10/2025- No one appeared 24/11/2025- No one appeared 22/12/2025- No one appeared 26/02/2026- No one appeared

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In this case no one appeared on behalf of the Assessee on 07/04/2026. We proceeded Ex-parte qua Assessee. We heard Ld.Departmental Representative and perused the records.

4.1. The Addl/Joint CIT(A) (herein referred as First Appellate Authority) upheld the disallowance. The First Appellate Authority noted that Assessee had filed Return of Income for the year beyond the statutory time limit allowed u/s 139(1) of the Act. The First Appellate Authority held that hence as per section 80AC of the Act the assessee was not eligible for deduction u/s 80 P of the Act.

4.2. Aggrieved by the Order u/s 250 of the Act, the Assessee filed appeal before this Tribunal.

4.3. In this case admittedly the Return of Income for the year under consideration was not filed within the time allowed u/s 139(1) of the Act.

4.4. Section 80 AC of the Act is reproduced here under : Deduction not to be allowed unless return furnished. 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;

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(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. Thus, as per Section 80AC of the Act, No deduction under section 80P will be allowed unless Return of Income is filed within the time specified u/s 139(1) of the Act.

4.5. Admittedly, assessee had not filed Return of Income within the time mentioned u/s 139(1) of the Act. Assessee claimed that Assessee fulfils all other conditions, however, since the Return of Income was not filed within the time allowed u/s 139(1) of the Act, Assessee is not eligible for deduction u/s 80P of the Act. Therefore, we do not find any infirmity with the order rejecting assessee’s claim for deduction u/s 80P of the Act.

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this Sub Section (5) of Section 80A of the Act imposes an additional condition for claim of deduction in relation to income under any of the provisions mentioned therein. Apart from the requirement of fulfillment of individual set of respective conditions for the purpose of claiming the concerned deduction, this plenary condition requires that the claim ought to have made in the return of income by the assessee and if the assessee fails to make such claim in the return of income, such deduction shall not allowed to him under the relevant provision. Admittedly, in the present case, the Petitioners had not raised any such claim in the return of income. In plain terms, the claim of the Petitioners under Section 80-IB (10) of the Act would be hit by Sub Section (5) of Section 80A of the act. …………………….. ………. What Sub Section (5) of Section 80A of the Act mandates is that, if the assessee fails to make a claim in his return of income for any deduction under the provisions specified therein, the same would not be granted to the assessee. This condition or restriction is not relatable to the Assessing Officer or the Income Tax Authority. This condition attaches to the claim of the assessee and has to be implemented by the Assessing Officer, CIT or the Appellate Tribunal as the case may be. There is no indication in Sub Section (5) of Section 80A of the Act as to why the restriction contained therein amounts to limiting the power of Assessing Officer but not that of Commissioner.” Unquote. 7.1. Thus, the Hon’ble Jurisdictional High Court categorically held that as per Section 80A(5) of the Act, to claim deduction under section 80IB assessee had to make the claim of impugned deduction in the Return of Income. When we read the Section 80AC with 80 A(5) , it emanates that to claim deduction u/s 80P of the Act, the assessee has to make a claim in the return of income filed within the statutory time allowed u/s 139(1) of the Act.

7.2. The Hon’ble Kerala High Court in the case of Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham Vs. CIT 459 ITR 730 (Kerala) [14-03-2023], has held as under : Quote, “ 1. On a consideration of the rival submissions and on a perusal of the statutory provisions, we find that a reading of section 80A(5) and Section 80AC of the IT Act as they stood prior to 1-4-2018, when the latter provision was amended by Finance Act 2018, would reveal that the statutory scheme under the IT Act was to admit only such claims for deduction under section 80P of the IT Act as were made by the assessee in a return of income filed by him. That return can be under sections 139(1), 139(4), 142(1) or section 148, and to be valid, had to be filed within the due date contemplated under those provisions. Under section 80A(5), the claim for deduction under section 80P could

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be made by an assessee in a return filed within the time prescribed for filing such returns under any of the above provisions. The amendment to Section 80AC with effect from 1-4-2018, however, mandated that for an assessee to get a deduction under section 80P of the IT Act, he had to furnish a return of his income for such assessment year on or before the due date specified in section 139(1) of the IT Act. In other words, after 1-4-2018, even if the assessee makes his claim for deduction under section 80P in a return filed within time under sections 139(4), 142(1) or section 148, he will not be allowed the deduction, unless the return in question was filed within the due date prescribed under section 139(1). Thus, it is clear that the statutory scheme permits the allowance of a deduction under section 80P of the IT Act only if it is made in a return recognised as such under the IT Act, and after 1-4-2018, only if that return is one filed within the time prescribed under section 139(1) of the Act. As the return in these cases, for the assessment years 2009-10 and 2010-11, were admittedly filed after the dates prescribed under sections 139(1) and 139(4) or in the notices issued under section 142(1) and section 148, the returns were indeed non-est and could not have been acted upon by the Assessing Officer even though they were filed before the completion of the assessment. 12. There is yet another aspect of the matter. The requirement of making the claim for deduction in a return of income filed by the assessee can be seen as a statutory pre-condition for claiming the benefit of deduction under the IT Act. It is trite that a provision for deduction or exemption under a taxing Statute has to be strictly construed against the assessee and in favour of the Revenue. Thus viewed, a failure on the part of an assessee to comply with the pre- condition for obtaining the deduction cannot be condoned either by the statutory authorities or by the courts. 13. It is in the backdrop of the aforesaid discussion that we must consider the findings of a Division Bench of this Court in Chirakkal Service Co-operative Bank Ltd. [supra]. The findings therein, that appear to suggest that a claim for deduction under section 80P can be entertained even if it is made in a return filed beyond the time permitted under the IT Act, ignores the perspective that sees the requirement of the claim for deduction being made in a valid return as a pre-condition for obtaining the benefit of the statutory deduction. The said findings also fly in the face of the express statutory provisions that requires the claim to be made in a return filed by the assessee, by which term is meant a valid return under the Act, and therefore have necessarily to be seen as per incuriam. We also find that the subsequent amendments to section 80AC by the Finance Act 2018 fortifies the view that we have taken for, it makes the claim for deduction under section 80P conditional on filing a return within the due date prescribed under section 139(1) of the IT Act. In other words, the pre-condition for claiming the deduction under section 80P of the IT Act has now been

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made more stringent by reducing the time available to an assessee for making the claim ………….. In the light of the aforesaid discussion, we find that the above questions of law have to be answered in favour of the Revenue and against the assessee, and we do so. Thus, these I.T. Appeals are disposed by answering the substantial questions of law raised therein, in favour of the Revenue and against the assessee.” Unquote.

In the result the disallowance of deduction u/s 80P is upheld.

7.3. Accordingly Ground Nos. 1 & 2 are dismissed for elaborate reasons discussed in above.

Order pronounced in the open Court on 25th May, 2026

Sd/- Sd/- (VINAY BHAMORE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 25-05-2026 TNMM

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आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपील र्थी / The Appellant 1. प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘SMC’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune