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

P & R Engineering Services Private Limited., New Delhi vs. Circle 19(1), Delhi, DCIT, New Delhi, India

In the result, appeal of the assessee is allowed

ITA 4537/DEL/2025[2018-19]Status: DisposedITAT Delhi11 Feb 2026AY 2018-19

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year : 2018-19] P & R Engineering Service Vs. Dcit Pvt. Ltd., 89, Lok Nayak Circle-19(1) Apartment, Rohini Courts, New Delhi S.O. Rohini Courts, North West Delhi, New Delhi- 110085. Pan-Aaccp0484E Appellant Respondent Appellant By Shri V.K. Agarwal, Ar & Shri Hrithik Lamba, Adv. Respondent By Shri Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing 03.02.2026 Date Of Pronouncement 11.02.2026 Order Per Manish Agarwal, Am : The Present Appeal Is Filed By Assessee Against The Order Dated 03.07.2025 Of Ld. Commissioner Of Income Tax (A), National Faceless Appeal Centre (“Nfac”), Delhi [“Ld. Cit(A)”] In Appeal No. Nfac/2017-18/10031831 Passed U/S 250 Of The Income Tax Act, 1961 [“The Act”] Arising Out Of Assessment Order Dated 11.02.2021 Passed U/S 143(3) R. W. Sections 143(3A) & 143(3B) Of The Act Pertaining To Assessment Year 2018-19. 2. Brief Facts Of The Case Are That Assessee Has Claimed Deduction U/S 80-Ia Of The Act Of Inr 5,62,48,491/- Which Was Disallowed By The Ao For The Sole Reason That The Return Of Income Was Filed Belatedly On 30.03.2019 Though The Same Has To Be Filed Upto 31.10.2018 In Terms Of The Due Date As Per Section 139(1) Of The Act. Ld. Cit(A) Confirmed The Said Disallowance & Dismissed The Appeal Of The Assessee.

Section 119(2)(b)Section 139(1)Section 139(4)Section 143(3)Section 250Section 80Section 801ASection 80ASection 80I

Co-Operative Cane Development Union Ltd., Bahraich vs. Income Tax Officer-1, Bahraich

In the result, all the three appeals are partly allowed

ITA 601/LKW/2025[2020-21]Status: DisposedITAT Lucknow30 Jan 2026AY 2020-21

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharyita Nos.599, 600 & 601/Lkw/2025 A.Ys. 2013-14, 2018-19 & 2020-21 Cooperative Cane Development Vs. Income Tax Officer-1, 423A, Union Ltd., Bahraich, C/O Vaishnavpuram, Huzoorpur Ayyubi Chambers, Raniganj, Road, Bahraich, Uttar Pradesh Lakhimpur Kheri-262701, U.P. 271801 Pan: Aaaac8503F (Appellant) (Respondent) Assessee By: Sh. K.R. Rastogi, C.A. Revenue By: Sh. R.R.N. Shukla, Addl Cit Dr Date Of Hearing: 21.01.2026 Date Of Pronouncement: 30.01.2026 O R D E R Per Bench These Three Appeals Have Been Filed Against The Orders Of The Ld. Cit(A), Nfac On 25.06.2025 (For The Assessment Year 2013-14) & 26.06.2025 (For The Assessment Year 2018-19) & 4.07.2025 (For The Assessment Year 2020-21), Wherein The Ld. Cit(A) Has Partly Allowed The Appeals Of The Assessee Against The Various Orders Passed By The Ld. Ao Under Section 143(3) For The Assessment Years 2013-14, 2018-19 & 2020-21. The Grounds Of Appeal In The Aforesaid Three Appeals Are As Under:- A.Y. 2013-14 “(1) That The Authorities Below Erred On Facts & In Law In Not Allowing Deduction U/S 80P(2)(A)(Iii) & 80P(2)(I) Of I. T. Act On Interest Received On Investments Held With Banks In Form Of F.D.R.'S & Interest On Saving Bank Account Rs. 72,38,730/-. (2) That The Authorities Below Erred On Facts In Not Considering Investments In Deposits With Banks Has Been Made As Per Statutory Requirements & The Interest So Realized On Such Investments Shall Be Attributable To The Activity Of Providing Credit Facilities & Marketing Agriculture Produce. Cooperative Cane Development Union Ltd. A.Ys. 2013-14, 2018-19 & 2020-21

For Appellant: Sh. K.R. Rastogi, C.AFor Respondent: Sh. R.R.N. Shukla, Addl CIT DR
Section 143(3)Section 80PSection 80P(2)(a)

Co-Operative Cane Development Union Ltd., Bahraich vs. Income Tax Officer-1, Bahraich

In the result, all the three appeals are partly allowed

ITA 600/LKW/2025[2018-19]Status: DisposedITAT Lucknow30 Jan 2026AY 2018-19

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharyita Nos.599, 600 & 601/Lkw/2025 A.Ys. 2013-14, 2018-19 & 2020-21 Cooperative Cane Development Vs. Income Tax Officer-1, 423A, Union Ltd., Bahraich, C/O Vaishnavpuram, Huzoorpur Ayyubi Chambers, Raniganj, Road, Bahraich, Uttar Pradesh Lakhimpur Kheri-262701, U.P. 271801 Pan: Aaaac8503F (Appellant) (Respondent) Assessee By: Sh. K.R. Rastogi, C.A. Revenue By: Sh. R.R.N. Shukla, Addl Cit Dr Date Of Hearing: 21.01.2026 Date Of Pronouncement: 30.01.2026 O R D E R Per Bench These Three Appeals Have Been Filed Against The Orders Of The Ld. Cit(A), Nfac On 25.06.2025 (For The Assessment Year 2013-14) & 26.06.2025 (For The Assessment Year 2018-19) & 4.07.2025 (For The Assessment Year 2020-21), Wherein The Ld. Cit(A) Has Partly Allowed The Appeals Of The Assessee Against The Various Orders Passed By The Ld. Ao Under Section 143(3) For The Assessment Years 2013-14, 2018-19 & 2020-21. The Grounds Of Appeal In The Aforesaid Three Appeals Are As Under:- A.Y. 2013-14 “(1) That The Authorities Below Erred On Facts & In Law In Not Allowing Deduction U/S 80P(2)(A)(Iii) & 80P(2)(I) Of I. T. Act On Interest Received On Investments Held With Banks In Form Of F.D.R.'S & Interest On Saving Bank Account Rs. 72,38,730/-. (2) That The Authorities Below Erred On Facts In Not Considering Investments In Deposits With Banks Has Been Made As Per Statutory Requirements & The Interest So Realized On Such Investments Shall Be Attributable To The Activity Of Providing Credit Facilities & Marketing Agriculture Produce. Cooperative Cane Development Union Ltd. A.Ys. 2013-14, 2018-19 & 2020-21

For Appellant: Sh. K.R. Rastogi, C.AFor Respondent: Sh. R.R.N. Shukla, Addl CIT DR
Section 143(3)Section 80PSection 80P(2)(a)

Co-Operative Cane Development Union Ltd., Bahraich vs. Income Tax Officer-1, Bahraich

In the result, all the three appeals are partly allowed

ITA 599/LKW/2025[2013-14]Status: DisposedITAT Lucknow30 Jan 2026AY 2013-14

Bench: Sh. Sudhanshu Srivastava & Sh. Nikhil Choudharyita Nos.599, 600 & 601/Lkw/2025 A.Ys. 2013-14, 2018-19 & 2020-21 Cooperative Cane Development Vs. Income Tax Officer-1, 423A, Union Ltd., Bahraich, C/O Vaishnavpuram, Huzoorpur Ayyubi Chambers, Raniganj, Road, Bahraich, Uttar Pradesh Lakhimpur Kheri-262701, U.P. 271801 Pan: Aaaac8503F (Appellant) (Respondent) Assessee By: Sh. K.R. Rastogi, C.A. Revenue By: Sh. R.R.N. Shukla, Addl Cit Dr Date Of Hearing: 21.01.2026 Date Of Pronouncement: 30.01.2026 O R D E R Per Bench These Three Appeals Have Been Filed Against The Orders Of The Ld. Cit(A), Nfac On 25.06.2025 (For The Assessment Year 2013-14) & 26.06.2025 (For The Assessment Year 2018-19) & 4.07.2025 (For The Assessment Year 2020-21), Wherein The Ld. Cit(A) Has Partly Allowed The Appeals Of The Assessee Against The Various Orders Passed By The Ld. Ao Under Section 143(3) For The Assessment Years 2013-14, 2018-19 & 2020-21. The Grounds Of Appeal In The Aforesaid Three Appeals Are As Under:- A.Y. 2013-14 “(1) That The Authorities Below Erred On Facts & In Law In Not Allowing Deduction U/S 80P(2)(A)(Iii) & 80P(2)(I) Of I. T. Act On Interest Received On Investments Held With Banks In Form Of F.D.R.'S & Interest On Saving Bank Account Rs. 72,38,730/-. (2) That The Authorities Below Erred On Facts In Not Considering Investments In Deposits With Banks Has Been Made As Per Statutory Requirements & The Interest So Realized On Such Investments Shall Be Attributable To The Activity Of Providing Credit Facilities & Marketing Agriculture Produce. Cooperative Cane Development Union Ltd. A.Ys. 2013-14, 2018-19 & 2020-21

For Appellant: Sh. K.R. Rastogi, C.AFor Respondent: Sh. R.R.N. Shukla, Addl CIT DR
Section 143(3)Section 80PSection 80P(2)(a)

Heavy Vehicles Factory Employees Coop Thrift and Credit Society Ltd., Thiruvallur vs. ITO, Ncw-7(3), Chennai

In the result, both the appeals filed by the assessee are dismissed

ITA 3577/CHNY/2025[2019-20]Status: DisposedITAT Chennai27 Jan 2026AY 2019-20

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपील सं./I.T.A. Nos.3576 & 3577/Chny/2025 िनधा"रण वष"/Assessment Year: 2018-19 & 2019-20 Heavy Vehicle Factory Employees Vs. The Income Tax Officer, Cooperative Thrift & Credit Society Non Corporate Ward 7(3), Ltd., M B 26-A, Hvf Estate, Avadi, Chennai. Tiruvallur 600 054. [Pan:Aaaah3020N] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : None ""थ" की ओर से/Respondent By : Shri Sbr Kumar Laghimsetti, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 21.01.2026 घोषणा की तारीख /Date Of Pronouncement 27.01.2026 : आदेश /O R D E R Per S.S. Viswanethra Ravi: Both The Appeals Filed By The Assessee Are Directed Against Separate Order Dated 09.09.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The Assessment Years 2018-19 & 2019-20. 2. When The Appeal Was Taken Up For Hearing, None Appeared On Behalf Of The Assessee Nor Filed Any Adjournment Petition. Thus, The 2

For Appellant: NoneFor Respondent: Shri SBR Kumar Laghimsetti, Addl. CIT
Section 139(1)Section 148Section 80ASection 80P

Heavy Vehicles Factory Employees Coop Thrift and Credit Society Ltd., Tiruvallur vs. ITO, Ncw-7(3), Chennai

In the result, both the appeals filed by the assessee are dismissed

ITA 3576/CHNY/2025[2018-19]Status: DisposedITAT Chennai27 Jan 2026AY 2018-19

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपील सं./I.T.A. Nos.3576 & 3577/Chny/2025 िनधा"रण वष"/Assessment Year: 2018-19 & 2019-20 Heavy Vehicle Factory Employees Vs. The Income Tax Officer, Cooperative Thrift & Credit Society Non Corporate Ward 7(3), Ltd., M B 26-A, Hvf Estate, Avadi, Chennai. Tiruvallur 600 054. [Pan:Aaaah3020N] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : None ""थ" की ओर से/Respondent By : Shri Sbr Kumar Laghimsetti, Addl. Cit सुनवाई की तारीख/ Date Of Hearing : 21.01.2026 घोषणा की तारीख /Date Of Pronouncement 27.01.2026 : आदेश /O R D E R Per S.S. Viswanethra Ravi: Both The Appeals Filed By The Assessee Are Directed Against Separate Order Dated 09.09.2025 Passed By The Ld. Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre [Nfac], Delhi For The Assessment Years 2018-19 & 2019-20. 2. When The Appeal Was Taken Up For Hearing, None Appeared On Behalf Of The Assessee Nor Filed Any Adjournment Petition. Thus, The 2

For Appellant: NoneFor Respondent: Shri SBR Kumar Laghimsetti, Addl. CIT
Section 139(1)Section 148Section 80ASection 80P