Section 80A(5) of the Income Tax Act
The decision most relied on for Section 80A(5) is Co-operative Bank Ltd. v. CIT (384 ITR 490), cited in 631 of the 143 judgments on BharatTax that turn on this section.
Leading authorities on Section 80A(5)
Co-operative banks are not fundamentally different from co-operative societies, entitling them to claim deductions under Section 80P of the Income Tax Act, 1961, including for interest income treated as business income.
Tribunals, including the Income Tax Appellate Tribunal, are subordinate to High Courts and cannot exercise the power of judicial review or strike down legislative provisions. High Courts retain ultimate authority to oversee and correct tribunal orders and are solely empowered to rule on the constitutional validity of laws.
Timely filing of the income-tax return under section 139(1) is a mandatory condition for claiming deductions under Chapter VI-A, including section 80P, especially for Assessment Years 2018-19 onwards due to the amendment to section 80AC. Such deductions are not allowable if the return is filed belatedly or in response to a section 148 notice.
Deductions under Chapter VI-A (e.g., Sections 10B, 10BA) and other specified provisions are not allowable if the claim is not explicitly made in the return of income as mandated by Section 80A(5). Such a claim cannot be subsequently entertained during assessment proceedings or even during revision proceedings under Section 264.
Assessing Officers and appellate authorities must consider and grant correct deductions for fresh legal claims or revised computations made during assessment or appellate proceedings, subject to due verification.
A deduction under Section 80P can be claimed by an assessee even if the return of income is filed belatedly under Section 139(4), provided a return has been filed.
Expenses incurred in connection with a public issue of shares or debentures are allowable as revenue expenditure eligible for deduction under section 35D of the Income-tax Act. This includes expenses related to Qualified Institutional Buyers (QIBs).
A tribunal can exercise its discretion to admit an additional ground of appeal, even if raised for the first time, provided it considers the facts and circumstances of the case.
An assessee is not eligible for a deduction under Section 80IB(10) if such deduction was not claimed in the original return of income, even if a claim was sought to be admitted based on a Supreme Court decision.
Amounts transferred to contingency reserve and dividend control reserve are allowed as deductions on revenue account.
Judgments on Section 80A(5)
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