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Facts
The assessee filed an appeal against the order denying deduction under Section 80JJAA for AY 2018-19. The assessee had initially claimed a deduction of Rs. 58,12,704 in the original ITR but later filed a revised claim for Rs. 3,07,55,995, supported by a revised Form 10DA.
Held
The Tribunal held that the assessee had initially filed the original return claiming part relief and that a revised claim would not attract Section 80A(5) if the original return was filed within the due date. The Tribunal accepted the assessee's ground in principle, considering the insertion of a new proviso to Section 80JJA.
Key Issues
Whether a revised claim for deduction under Section 80JJAA is admissible if the original return was filed within the due date, even if a part of the deduction was claimed in the original return?
Sections Cited
80JJAA, 80A(5), 80AC, 139(1)
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Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: Sh. Satbeer Singh Godara & Sh. Manish Agarwal
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for Assessment Year 2018-19 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024–25/1074701797(1) dated 19.03.2025, in proceedings u/s 14(3) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
We notice at the outset that the assessee/appellant is aggrieved against both the learned lower authorities’ action denying section 80JJA deduction herein in assessment order FIS Global Business Solutions India Pvt. Ltd. FIS Global Business Solutions India Pvt. Ltd. dated 08.04.2021 as upheld in the lower appellate discussion; dated 08.04.2021 as upheld in the lower appellate discussion; dated 08.04.2021 as upheld in the lower appellate discussion; reading as under: “5.5 Ground of appeal no. 4: “5.5 Ground of appeal no. 4: In this ground, the In this ground, the appellant has filed revised claim of deduction u/s. 80JJAA appellant has filed revised claim of deduction u/s. 80JJAA appellant has filed revised claim of deduction u/s. 80JJAA of the Act amounting to Rs. 3,07,55,995/ of the Act amounting to Rs. 3,07,55,995/-, as per revised , as per revised Form No. 10DA. 5.5.1 The appellant had claimed deduction u/s. 80JJAA 5.5.1 The appellant had claimed deduction u/s. 80JJAA 5.5.1 The appellant had claimed deduction u/s. 80JJAA of the Act amounting to Rs. 58,12,704/ of the Act amounting to Rs. 58,12,704/- in the ITR filed ITR filed by it u/s. 139(1) of the Act on 28.11.2018. Now with by it u/s. 139(1) of the Act on 28.11.2018. Now with by it u/s. 139(1) of the Act on 28.11.2018. Now with amendment made under the said section of the Act by amendment made under the said section of the Act by amendment made under the said section of the Act by way of insertion of second proviso thereto, the appellant way of insertion of second proviso thereto, the appellant way of insertion of second proviso thereto, the appellant has furnished a revised Form 10DA claiming deduction has furnished a revised Form 10DA claiming deduction has furnished a revised Form 10DA claiming deduction u/s. 80JJAA of the Act of Rs u/s. 80JJAA of the Act of Rs. 3,07,55,995/-. The working . The working of the same has been given by the appellant in para 4.6 of the same has been given by the appellant in para 4.6 of the same has been given by the appellant in para 4.6 of his submission dated 19.02.2025 as under: of his submission dated 19.02.2025 as under:
5.5.2 In support of his claim, the appellant has 5.5.2 In support of his claim, the appellant has 5.5.2 In support of his claim, the appellant has principally relied on the decision of the Hon’ble High principally relied on the decision of the Hon’ble High principally relied on the decision of the Hon’ble High Court of Karnataka in the case of CIT, LTU vs. Texas aka in the case of CIT, LTU vs. Texas aka in the case of CIT, LTU vs. Texas Instruments India (P) Ltd. [2021] 127 taxmann.com 59, Instruments India (P) Ltd. [2021] 127 taxmann.com 59, Instruments India (P) Ltd. [2021] 127 taxmann.com 59, wherein, as per the appellant, the Hon’ble High Court had wherein, as per the appellant, the Hon’ble High Court had wherein, as per the appellant, the Hon’ble High Court had FIS Global Business Solutions India Pvt. Ltd. held that the amendment brought into section 80JJAA of the Act, being clarificatory in nature, would apply retrospectively, and therefore, even though the second proviso to the said section was inserted w.e.f. 01.04.2019, its beneficial treatment was available to the appellant for the concerned AY, being AY 2018-19, also. 5.5.3 The contentions of the appellant have been duly considered. The appellant filed its ITR on 28.11.2018. The Finance Act, 2018 vide which the said amendment was made to section 80JJAA of the Act by way of insertion of second proviso thereto, received accent of the Hon’ble President of India on 29.03.2018, i.e. to say, much before the ITR for the concerned A.Y. was filed by the appellant. Therefore, before filing its ITR for the concerned A.Y. the appellant was in the know-how of the said changes made u/s. 80JJAA of the Act. As such, it was incumbent on the appellant to make the claim as per the amended provisions of section 80JJAA of the Act in the ITR filed by it u/s. 139(1) of the Act. As per the provisions of section 80A(5) of the Act, inter alia, where an assessee fails to claim in his Return of Income deduction in respect of certain income under the heading “C – Deduction in respect of certain income”, of Chapter VIA of the Act, no deduction shall be allowed to him thereunder. Further, as per the provisions of section 80AC(ii) of the Act, no deduction under the said heading of Chapter VIA of the Act is allowed to an assessee on or after 01.04.2018 unless he furnishes a Return of Income claiming such deduction u/s. 139(1) of the Act. Section 80JJAA of the Act falls under the heading “C – Deduction in respect of certain income”, of Chapter VIA of the Act. Thus conjoint reading of section 80A and Section 80AC lays down the primary conditions as under: (1) no deduction under section 80IB shall be allowed if the deduction is not claimed in the return of Income. (2) the return of Income shall be filed on or before the due date mentioned in the Section 139(1) of the Act. Both these conditions need to be satisfied as these are primary conditions. If an assessee satisfies these primary conditions, then the AO shall verify eligibility of the assessee from the perspective of conditions mentioned in the respective sections of Chapter VIA of the Act. 5.5.4 In the appellant’s case, as pointed out, the said enhanced claim of deduction u/s. 80JJAA of the Act was not made by it in the ITR filed for the concerned A.Y.
FIS Global Business Solutions India Pvt. Ltd. u/s. 139(1) of the Act. Therefore, by virtue of provisions of section 80A(5) and 80AC above, fresh claim made by it now before this authority is not admissible. Reliance in this regard is placed on the following judicial pronouncements: i. Decision of the Hon’ble Bombay High Court in the case of EBR Enterprises v. Union of India [2019] 107 taxmann.com 220 (Bombay) wherein the revised claim of deduction of the assessee made u/s. 80IB(10) of the Act before the Commissioner u/s. 264 of the Act was held to be inadmissible by virtue of provisions of section 80A(5) of the Act. ii. Decision of the Hon’ble Gujarat High Court in the case of Rachna Infrastructure (P.) Ltd. v. Principal Commissioner of Income-tax [2022] 138 taxmann.com 416 (Gujarat) wherein new claim of deduction of the assessee made u/s. 80IA of the Act before the Commissioner u/s. 264 of the Act was held to be inadmissible by virtue of provisions of section 80A(5) of the Act. iii. Decision of the Hon’ble Pune Tribunal in the case of Income-tax Officer v. Jagtap Patil Promoters & Builders [2023] 147 taxmann.com 199 (Pune - Trib.) wherein it was held that claim of deduction u/s. 80IB(10) of the Act was not available to the assessee even though Form No. 10CCB was filed in time but the same was not claimed in the ITR by virtue of provisions of sections 80A(5) and 80AC of the Act. iv. Decision of the Hon’ble Mumbai Tribunal in the case of Shree Datta Prasad Sahakari Patsanstha Ltd. v. Income-tax Officer [2022] 134 taxmann.com 324 (Mumbai - Trib.) wherein it was held that where assessee had not claimed deduction under section 80P(2)(a)(i) in its return of income, it could not be allowed such deduction in view of condition imposed under section 80A(5) even though it was otherwise eligible for such deduction. Therefore, the ground of appeal raised by the appellant is dismissed.” 3.1 That is what leaves the assessee aggrieved.
FIS Global Business Solutions India Pvt. Ltd. 4. The Revenue vehemently argues in light of section 80A(5) r.w.s. 80AC of the Act that given the fact that the assessee had not claimed the impugned entire deduction u/s 80JJA of the Act in the original return u/s 139(1) of the Act, which has been rightly held not entitled for the very reason in both the lower proceedings.
We find no merit in the Revenue’s foregoing vehement submissions. We make it clear that be it section 80AC or section 80A(5) requiring taxpayer concerned to file a return u/s 139(1) claiming and the said relief ought to be claimed in a return, there is no denial of the fact that the original return herein had indeed been filed/ submitted u/s 139(1) of the Act claiming part relief. That being the case, the mere fact that the assessee revised it’s very claim would not attract section 80A(5) of the Act as clinching statutory expression “return” incorporated therein would deem to have included even a revised one as well or belated return as held in Chirakkal Service Co-Operative Bank Ltd. vs. CIT (2016) 68 taxmann.com 298. This is indeed coupled with the facts that the assessee had already pleaded and proved the reason of it’s return revision on account of the corresponding proviso inserted by the tax laws (amendment) Act, 2016 w.e.f. 01.04.2017, to section 80JJA of the Act. We thus accept the assessee’s instant sole ground in principle and direct the assessing authority to