GANPATI INDUSTRIES,ROORKEE vs. ITO, ROORKEE

This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals)/Addl/JCIT(A), Udaipur’s order dated 29.07.2025 having DIN and order no. ITBA/APL/S/250/2025-26/1079029347(1), involving proceedings under section 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Coming to the sole substantive issue between the parties herein, we note that the learned lower authorities have rejected the assessee’s section 80IC deduction claim of Rs.5,24,460/- in their respective findings for the sole reason that it had failed to file/upload its return under section 139(1) of the Act. The Assessing Officer as well as CIT(A) are of the considered view that the assessee’s impugned deduction claim is barred by section 80AC for want of a valid return under section 139(1) of the Act.

The Revenue’s vehement contention in support of the impugned section 80IC deduction fail to evoke our concurrence. This is for the precise reason that we are in assessment year 2016- 17 whereas the legislature has amended section 80AC of the Act by way of substitution vide Finance Act, 2018 w.e.f. 01.04.2018. There is no material in the case records that this statutory substitution carries any retrospective effect and compliance in the preceding assessment year as well. We thus accept the assessee’s instant sole substantive ground to hold it eligible for the impugned section 80IC deduction in very terms.

This assessee’s appeal is allowed.