TORRENT ROOFING SYSTEMS,HOSHIARPUR vs. INCOME TAX OFFICER WARD -4, `HOSHIARPUR
What did the Tribunal hold?
The Tribunal held that claiming deduction under Section 80IC by way of a rectification application under Section 154 is not permissible. The original disallowance under Section 143(1) was sustained.
What were the facts?
The assessee claimed deduction under Section 80IC but did not file Form 10CCB with the return. The deduction was disallowed during processing under Section 143(1). The assessee filed a rectification application under Section 154, which was rejected by the AO and subsequently by the CIT(A).
What were the issues?
Whether a claim for deduction under Section 80IC can be made or allowed through a rectification application under Section 154 when it was not claimed initially or disallowed under Section 143(1).
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE
This appeal has been filed by the assessee against the order dated 24.05.2022 passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi in respect of Assessment Year 2017-18, challenging therein the action of the CIT(A) confirming the order of the AO whereby rejecting the rectification application filed u/s 154 by the assessee for the claim of No. 10CCB along with the return of income.
None appeared for the assessee, however, considering the issue of deduction claimed by way of rectification u/s 154 of the Income Tax Act, we heard the Ld. DR and decided the appeal.
In facts, the appellant filed its return of income for AY 2017-18 on 27.10.2017, however he did not upload Form 10CCB along with the Return of Income. Later on, appellant e-filed Form 10CCB on 16/08/2018. The return was processed by CPC Bengaluru on 05.12.2018 wherein deduction under Chapter Vl-A was not allowed to the appellant. Hence, appellant filed rectification application under section 154 against this order, however no modification was made and income as per 143(1) was retained vide order u/s.154 dated 05.12.2019.
Aggrieved assessee filed appeal before the CIT(A) against order passed under section 154 by CPC Bengaluru who has confirmed the finding of the AO by observing that the grounds of appeals being agitated are primarily directed against order passed under section 143(1), wherein deduction under Chapter Vl-A was denied to the appellant, whereas appeal has been filed against order of 154 dated 05.12.2019. If there were further mistakes committed in recalculation, it would have been cause of further appellant’s case is tested on above observations, order under section 143(1) i.e., original order passed on 05.12.2018 continues where CPC Bengaluru had denied deduction under Chapter Vl-A. Order u/s.154 does not propose a further change in income from one which was determined while passing order u/s. 143(1).
In the grounds, the appellant assessee has raised objection to the action of the ld. CIT(A) containing in the grounds of appeal raised herein that the ld. CIT(A) has rejected the appeal of the assessee on surmises in limine without deciding the grounds of appeal on merits on the issue of deduction claimed u/s 80IC by way or rectification u/s 154 of the Income Tax Act. He further contended that the assessee was under the bonafide belief and on the advice of the counsel filed the rectification instead of appeal, so just because of this reasons appeal is not filed against 143(1) and filed appeal against the order passed u/s 154 of the Income Tax Act, and for want of justice it should not have been rejected in limine and should be heard on merits. The appellant has alternately raised plea that if the appeal is rejected against the order passed u/s 154 of the Income Tax Act.
The delay in filing the appeal against the order u/s 143(1) may be condoned and assessee may be allowed to file appeal accordingly.
80IC of the Income Tax Act made by the assessee by way of rectification application filed u/s 154 is not permissible under law. She contended that the assessee’s claim has been primarily rejected u/s 143(1) wherein deduction under Chapter (VI)(A) was denied to the appellant and hence the appeal filed against the order of 154 dated 05.12.2019 is rightly rejected by the Ld. CIT(A). In support, she placed reliance on the following judgments:
(i) CIT v. Jaideep Industries dated 10th April, 1989 (Hon’ble Punjab & Haryana High Court) (ii) Pradeep Kumar Batra v. DCIT (in (Delhi ITAT).
After hearing the Ld. Addl. CIT (DR) and considering the facts on record of the case, we find the undisputed fact that the appellant has claimed deduction u/s 80IC under Chapter (VI)(A) of the Income Tax Act by way of rectification application filed u/s 154 which is not permissible under law as the AO/CIT(A) is required to decide whether the appellant assesse is eligible for the aforesaid claim. In the case of ‘CIT v. Jaideep Industries’, dated 10th April, 1989 the Hon’ble Punjab & Haryana High Court has adjudicated on the scope of Section 154 of the act. In the instant case, since the assessee’s claim has been primarily rejected u/s 143(1) wherein facts on record in the order of the CIT(A), and therefore, the impugned order is sustained. Alternative plea of the appellant does not pertain to present appeal. Hence, rejected as infructuous.
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 20.12.2022
More judgments on Section 80IC
- Neel Metal Products Ltd., New Delhi vs DCIT, Circle-18(1), New DelhiITA 5935/DEL/2017[2012-13]Status: Disposed10 Sept 2026AY 2012-13
- M/S. Neel Metal Products Ltd., New Delhi vs Addl. CIT, New DelhiITA 386/DEL/2017[2011-12]Status: Disposed10 Sept 2026AY 2011-12
- M/S Neel Metal Products Ltd., New Delhi vs ACIT, New DelhiITA 3919/DEL/2013[2009-10]Status: Disposed10 Sept 2026AY 2009-10
- Indus India, C/O Indus Appliances Pvt Ltd vs ITO, ParwanooITA 852/CHANDI/2026[2016-17]Status: Disposed6 Aug 2026AY 2016-17
- Corbett Nature Reserve, Ramnagar vs Income Tax Officer, Ram NagarITA 65/RPR/2026[2021-22]Status: Disposed28 Jul 2026AY 2021-22
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