Filing Of Return U/s 139(1) Within Due Date Is Mandatory For Claiming Deduction U/s 80IB: Ahmedabad ITAT

Referring to the decision of Apex Court in Wipro Ltd. vs. Pr. CIT (2022) 142 taxmann.com 562 (SC), the Bench of Suchitra Kamble (Judicial Member) and Waseem Ahmed (Accountant Member) reiterated that “for claiming the benefit u/s. 80IB(10) of the Income Tax Act, the twin conditions of furnishing a declaration before the Assessing Officer and that too before due date of filing original return of income u/s. 139(1) are to be satisfied and both are to be complied with”. (Para 10)

As per the brief facts of the case, the assessee has claimed deduction u/s 80IB(10) amounting to Rs. 13,68,61,112/-. The AO however observed that the claim of deduction u/s. 80IB(10) has to further certain requirements, and in view of non-compliance of sub-section 80AC to his fulfilment of conditions led down in section 80IB(10), the submissions of Form No. 10CCB which is ab-initio on account of grounds that the assessee has filed the return beyond the time allowed u/s 139(1) as well as the assessee is not a developer as contemplated u/s. 80IB(10), the deduction u/s. 80IB(10) was disallowed.

The Bench noted that though the assessee was having a genuine reason for filing the return of income along with the audit report due to the attachment of bank accounts as well as the search operation the mandatory date u/s. 80AC prescribed for claiming deduction u/s. 80IB has to be applied.

In the present case, the Bench found that the assessee is claiming deduction u/s. 80IB(10) and the Income Tax Statute u/s. 80IB(10) also uses the word “shall” and therefore the condition of filing the return of income within the due date is mandatory in nature.

“In the present case, the statutory date for filing the return of income was that of 30-09-2007 and the search operations took place on 19-02-2005 and the details were available in the month of Nov, 2006 as stated by the assessee before the CIT(A) as well as before us”, added the Bench.

The Bench also clarified that the plea of Assessee that within short time the assessee cannot file return will not come to rescue the assessee because the records were available with the assessee before the due date of filing return for A.Y. 2007-08.

Hence, the ITAT answered in favour of the Revenue Department.

Counsel for Appellant/ Revenue: Ahilendra Pratap Yadav

Counsel for Respondent/ Taxpayer: S.N. Soparkar and Parin Shah

Case Title: DCIT verses Umang Hiralal Thakkar

Case Number: ITA No. 760/Ahd/2011

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