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Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL
Before: SHRI G.D. AGRAWALG.D. AGRAWAL & AND BEFORE SHRI G.D. AGRAWALG.D. AGRAWAL & AND MS. SUCHITRA KAMBLE
PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP :- PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A), Noida dated 22nd August, 2013.
2. Following grounds of appeal have been raised by the assessee :-
“1. That on facts and in the circumstances of the case and in law, the appellant was entitled to statutory deduction of Rs.1 lac u/s 80C of the I.T. Act.
That the denial of deduction of Rs.1 lac u/s 80C of the I.T. Act on facts and in law and also on the grounds taken and basis adopted by the authorities below was illegal, erroneous and untenable.
2 ITA-6274/Del/2013
3. That on facts and in law levy of tax at the rate of 20% u/s 115E of the I.T. Act was not warranted. Levy of tax at 20% thus deserves to be quashed.
That levy of interest u/s 234B was not warranted. The impugned levy deserves to be quashed and cancelled.”
We have heard the arguments of both the sides and perused the material placed before us. We find that when during the course of assessment proceedings the Assessing Officer raised the query how the assessee is entitled to deduction u/s 80C, the assessee, vide his reply dated 09.12.2011, admitted that the assessee is not entitled to deduction u/s 80C. The reply has been reproduced by the Assessing Officer in the assessment order. The same is reproduced below for ready reference :-
“With reference to the above, I would like to state that I was an NRI and I was not aware of the detailed provisions of the Income Tax Act and I filed my return of income claiming deduction u/s 80c under the bonafide belief that I was entitled to the same. I have now been advised that under the provisions of Section 115D(2) of the Act, I am not entitled to deduction u/s 80c.
I would, therefore, request you that assessment in my case may kindly be completed at an income of Rs.6,44,060/-.”
4. Despite the above admission by the assessee before the Assessing Officer, the assessee filed the appeal before the CIT(A) claiming that the assessee is entitled to such deduction in view of the provision of Section 115I. Learned CIT(A) has discussed this issue and has noted that u/s 115I, the assessee had to file a declaration to the effect that provision of Chapter XII-A shall not apply to him for the assessment year under consideration. The CIT(A) has recorded the finding that no such declaration has been filed by the assessee either along with the return of income or during the assessment proceedings.
3 ITA-6274/Del/2013
At the time of hearing before us, the learned counsel for the assessee contended that there should be deemed declaration because the return of income, wherein deduction u/s 80C is claimed by the assessee, is duly signed by the assessee. We are unable to accept this contention of the assessee. When Section 115I gives the option to the assessee subject to filing of the declaration, the assessee had to file a declaration to the effect that provision of Chapter XII-A shall not apply to him. Admittedly, no such declaration has been filed. On the other hand, when these facts were brought to the knowledge of the assessee during assessment proceedings, the assessee admitted that he is not entitled to deduction u/s 80C. In view of the above, we do not find any merit in the assessee’s appeal.
In the result, the appeal of the assessee is dismissed. Decision pronounced in the open Court on 09.08.2016.