Section 80AC of the Income Tax Act

The decision most relied on for Section 80AC is AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. v. Deputy Commissioner of Income Tax (138 Taxmann.com 571), cited in 78 of the 666 judgments on BharatTax that turn on this section.

Leading authorities on Section 80AC

AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. v. Deputy Commissioner of Income Tax
138 Taxmann.com 571 · 2022 · High Court
78
citing judgments

The Centralized Processing Centre (CPC) can deny deductions claimed under Chapter VI-A, such as Section 80P, during the processing of a return under Section 143(1) if conditions for claiming such deductions, including filing the return by the due date as per Section 80AC, are not met.

Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT
459 ITR 730 · 2023 · High Court
76
citing judgments

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.

EBR Enterprises v. Union of India
107 Taxmann.com 220 · 2019 · High Court
69
citing judgments

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.

Chirakkal Service Co-Operative Bank Ltd. Kannur v. CIT
68 Taxmann.com 298 · 2016 · High Court
62
citing judgments

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.

Chirakkal Service Co- Operative Bank Ltd. v. CIT
111 Taxmann.com 49 · 2019 · Reported
45
citing judgments

An adjustment under section 143(1)(a)(ii) or (v) of the Income-tax Act cannot be made without affording the assessee an opportunity to explain their case, as considerations like Section 80AC(ii) do not fall within the scope of adjustments permissible at the section 143(1) stage.

Lanjani Co-Operative Agri Service Society Ltd. (CPC) v. DCIT
146 Taxmann.com 468 · 2023 · ITAT
33
citing judgments

Adjustments under section 143(1)(a)(ii) cannot be made if the assessee's case is allowable on facts. The Assessing Officer or CPC cannot exercise powers under section 143(1) to make adjustments contrary to the facts allowable to the assessee, even when considering amended sections like 80AC.

Ultratech Cement Ltd. v. Additional Commissioner of Income Tax
408 ITR 500 · 2018 · High Court
32
citing judgments

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.

Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT
152 Taxmann.com 347 · 2023 · High Court
31
citing judgments

A claim for deduction under section 80P must be made in a valid return filed within the timelines prescribed by the Act (prior to April 1, 2018, this included sections 139(1), 139(4), 142(1), or 148; post-amendment, only section 139(1) is accepted). Statutory benefits like this deduction require strict adherence to legal conditions.

Gopal and Sons (HUF) v. Commissioner of Income-tax, Kolkata-XI
77 Taxmann.com 71 · 2017 · Supreme Court
31
citing judgments

Section 2(22)(e) of the Income Tax Act applies if a shareholder has a substantial interest in a company that receives a loan, making the loan amount a deemed dividend.

CIT v. Impact Containers Pvt. Ltd.
367 ITR 346 · 2014 · High Court
27
citing judgments

Section 2(22)(e) cannot be applied where the assessee is not a shareholder of the lending company, as its purpose is to prevent tax avoidance by distributing company profits as loans to shareholders.

Judgments on Section 80AC

Neptune Holidays Pvt. Ltd., Kolkata vs. I.T.O., Ward - 8(2), Kolkata

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 105/KOL/2023[2019-2020]Status: DisposedITAT Kolkata07 Feb 2024AY 2019-2020

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.105/Kol/2023 Assessment Year : 2019-20 Neptune Holidays Pvt. Ltd.……........................…...……………....Appellant 3Rd Floor, 113/F, Maheshwartola Road, Kolkata – 700046. [Pan: Aaccn9754F] Vs. Ito, Ward-8(2), Kolkata…...…..........................................…..…..... Respondent Appearances By: Shri Miraj D. Shah, Ar, Appeared On Behalf Of The Appellant. Shri Bonnine Debarma, Jcit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 22, 2024 Date Of Pronouncing The Order : February 07, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 13.12.2022 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1) For That On The Facts & Circumstances Of The Case, Ld. Cit (Appeals) Was Grossly Erred In Confirming The Addition Of Rs. 11,76,344/- Made By A.O. At Cpc On Account Of Delay In Deposit Of Employees Contribution To P.F. & Esi While Processing The Return Of Income U/S 143(1) When In Fact Entire The Sum Was Paid Within The Due Dates Specified Under The Relevant Statues & Wrong Mention Of Dates In Tax Audit Report Were Duly Brought To The Notice Of Ld. Cit (Appeals).

Section 139(1)Section 143(1)Section 143(1)(a)Section 250Section 36(1)(va)Section 80Section 80J