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Facts
The assessee filed an original return claiming deduction u/s 80IA, followed by a revised return. The CPC processed the revised return, denied the 80IA deduction citing late filing, and converted the refund into a demand.
Held
The Tribunal found that the assessee had indeed filed the original return within the due date. The controversy arose because the original return's timely filing was not acknowledged by the CPC or the lower appellate authority.
Key Issues
Whether the denial of deduction u/s 80IA was justified when the original return was filed within the prescribed time, despite a revised return being processed later.
Sections Cited
80IA, 143(1), 139(1), 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
Assessment Year : 2022-23 Shankarlal Kundanmal Parik, Vs. DCIT, Circle-1, Kolhapur. 10/276, Kapad Market, Ichalkaranji- 416115. PAN : ABIPP0423H Appellant Respondent Assessee by Shri Pramod S. Shingte : Revenue by : Shri Milind Debaje Date of hearing : 23.04.2025 Date of pronouncement : 26.05.2025 आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 26.12.2024 passed by Ld. Addl./JCIT(A), Faridabad for the assessment year 2022-23.
The assessee has raised the following grounds of appeal :-
1. On the facts and the circumstances of the case and in law, Lower Authorities have erred in disallowing claim of deduction u/s 80-IA of the Income Tax Act, 1961, for the sum of Rs.1,07,52,570/-, in the intimation passed u/s 143(1)(a) of the Income Tax Act. 1961 which was in consequence to revised return filed by the appellant, by assuming that return of income is filed belatedly, whereas it is your appellants submission that original return of income was submitted by your appellant on 20/10/2022 vide acknowledgement no 738841421201022. In view of this your appellant is entitled to claim deduction u/s 80- IA for sum of Rs. 1,07,52,570/-.
2. On the facts and the circumstances of the case and in law, learned Assessing Officer has erred in not computing the alternative minimum tax for which your appellant is entitled, your appellant prays for giving suitable instruction to compute the income as per the provision of laws.
Your appellant prays for deletion of entire addition. Your appellant craves for to add, alter amend, modify, delete any or all grounds of appeal
before or during the course of hearing in the interest of natural justice.”
3. Facts of the case, in brief, are that the assessee is an individual deriving income from proprietorship business as well as income as partner from partnership firm and also income from other sources and has furnished its original return of income on 20.10.2022. Subsequently, a revised return was also furnished on 13.12.2022. The subsequent return was processed by CPC u/s 143(1) vide intimation order dated 07.08.2023, wherein deduction u/s 80IA of Rs.1,07,52,570/- was denied and refund claimed by the assessee was converted into demand of Rs.44,52,480/-.
4. After considering the reply furnished by the assessee Ld. Addl./JCIT(A), Faridabad dismissed the appeal filed by the assessee by observing as under :- “4.0 Determination & Decision :- Keeping in view, the aforesaid factual and legal position, the appeal filed by the appellant is being decided on the basis of documents available on record. The statement of facts, grounds of appeal
, order appealed against and written submissions have been thoroughly examined. The central issue for adjudication among all the grounds of appeal no. 01 to 05 raised pertains to the sole issue of denying the benefit of Section 801A of the Act. Therefore, all grounds of appeal no. 01 to 05 are being clubbed and adjudicated together. 4.1 The appellant submitted that it had filed its ITR on 13/12/2022 and e-filed Form-10CCB on 21/09/2022. In this context, it's important to note that the appellant had claimed deduction u/s 801A of the Act amounting to Rs.1,07,52,570/- while filing the return of income. However, to avail the benefit of deduction u/s 801A, Form-10CCB was required to be filed before the due date of filing ITR as per Rule 18BBB and Section 801A of the Act. The appellant had e-filed Form- 10CCB on 21/09/2022, which is before filing of return on 13/12/2022; however, it may be appreciated that the ITR has been filed late, as the extended due date to file the Return was 07/11/2022. Therefore, one of the conditions for claiming deduction u/s 801A vis-à-vis 'the return of income is to be submitted in time' has not been fulfilled by the appellant. 4.2 In view of the above, I find no error in the AO's decision to disallow the appellant's claim for deduction under Section 801A of the Act, when processing the return under Section 143(1) of the Act.”
5. It is this order against which the assessee is in appeal before this Tribunal.
6. Ld. AR appearing from the side of the assessee submitted before us that the order passed by Ld. Addl./JCIT(A), Faridabad is unjustified. Ld. AR submitted before the bench that the assessee has installed wind mills for which deduction u/s 80IA of Rs.1,07,52,570/- was claimed. It was also submitted that the assessee is entitled to claim this deduction for a period of 10 consecutive assessment years and this is not the first year when the assessee has claimed such deduction u/s 80IA of the IT Act. In support of claim of deduction made by the assessee u/s 80IA for earlier and subsequent years, Ld. AR relied on intimation issued for assessment year 2018-19 to assessment year 2024-25 wherein the deduction u/s 80IA of the IT Act was allowed. Ld. AR submitted before us that the assessee has furnished original return of income within time i.e. on 20.10.2022 and thereafter a revised return was also furnished on 13.12.2022. Ld. AR further submitted that it appears that the CPC has not considered original return filed by the assessee u/s 139(1) of the IT Act and treated the revised return as original one which was filed on 13.12.2022. And accordingly, CPC was of the view that since the return of income has not been filed within the time allowed u/s 139(1) of the IT Act it disallowed the deduction claimed under Chapter VI-A i.e. u/s 80IA of the IT Act in the light of section 80AC of the IT Act. Ld. AR further submitted that Ld. Addl./JCIT(A), Faridabad also did not acknowledge the fact of filing original return in time and only considered the revised return which was filed on 13.12.2022. Accordingly, Ld. AR submitted before the bench that the fact of filing of original return in time was not acknowledged either by CPC or by Ld. Addl./JCIT(A), Faridabad which resulted in denial of claim of deduction u/s 80IA of the IT Act made by the assessee. Accordingly, Ld. AR prayed before the bench set-aside the order passed by Ld. Addl./JCIT(A), Faridabad and further requested to direct CPC to allow the claim made by the assessee u/s 80IA of the IT Act.
7. Ld. DR appearing from the side of the Revenue submitted before us that it appears that the assessee has not brought the fact of filing of original return within the time limit prescribed u/s 139(1) of the IT Act before the Ld. Addl./JCIT(A), Faridabad. Ld. DR in this regard referred the copy of written submission furnished by the assessee before Ld. Addl./JCIT(A), Faridabad wherein no discussion was made by the assessee with regard to original return filed by the assessee. Accordingly, Ld. DR requested before the bench to remand the matter back to the file of Ld. Addl./JCIT(A), Faridabad to decide the issue afresh in the light of fact of filing original return by the assessee within time limit prescribed u/s 139(1) of the IT Act.
We have heard Ld. Counsels from both the sides and perused the material available on record including the copy of ITR-V with regard to filing of original return on 12.10.2022. In this regard, we find that admittedly the assessee has installed windmills and therefore he is entitled to claim deduction u/s 80IA of the IT Act which the assessee is already claiming in preceding years as well as in subsequent years. We also find that in the impugned intimation CPC has treated the processed ITR as the original one and therefore obviously the deduction claimed by the assessee u/s 80IA was disallowed since the impugned return was filed on 13.12.2022 i.e. beyond the time limit prescribed u/s 139(1) of the IT Act. It is the submission of Ld. AR that from the perusal of ITR-V i.e. the acknowledgement of original return, which is dated 12.10.2022 it is crystal clear that the original return was filed well 80IA of the IT Act. It is the submission of Ld. Counsel for the assessee that the assessee has furnished copy of income tax portal wherein filing of original return of income as well as revised return of income is evident. Considering the totality of the facts of the case, we find force in the arguments of Ld. counsel of the assessee that the whole controversy arises due to the fact that filing of original return of income well within time as prescribed u/s 139(1) of the IT Act was not acknowledged either by CPC or by Ld. Addl./JCIT(A), Faridabad which resulted in denial of deduction u/s 80IA of the IT Act. At the same time, we also take into consideration the argument advanced by Ld. DR that the fact of filing of original income tax return well within time was not brought to the knowledge of Ld. Addl./JCIT(A), Faridabad which compelled him to confirm the intimation order passed by CPC wherein deduction u/s 80IA was disallowed. Under these circumstances, we deem it appropriate to set-aside the order passed by Ld. Addl./JCIT(A), Faridabad and remand the matter back to him with a direction to decide the appeal afresh and as per fact &