The Income Tax Appellate Tribunal (ITAT), Rajkot bench disallowed the claim under Section 801 A of the Income Tax Act, 1961 on the ground that there was a failure to file valid Income Tax Returns or revised Income Tax returns.
The assessee, M/s. Patel Brass Works P. Ltd. engaged in manufacturing of plane shaft bearings and allied engineering goods and generation of electricity from Windmill. The assessee filed return of income on 16.09.2011 and during the course of assessment, the assessee filed revised computation of income claiming a deduction of Rs 19,22,048/- u/s 80IA(4)(iv)(a) of the Act contending that this deduction was inadvertently not claimed in the return of income filed.
The assessee filed a copy of the audit report u/s 80IA(7) in form 10CCB. The audit reports as well as the claim of deduction were thus both belated, filed subsequent to the filing of return of income. The AO observed that as per provisions of Section 139(5) of the Act, the assessee could file revised return of income up to 31.03.2013. The revised statement filed during assessment proceedings was thus beyond even the stipulated last date of filing of revised return of income. The AO was of the view that in absence of a revised return of income u/s 139(5), the claim of the assessee could not be entertained.
Before the CIT the only contention of the assessee was that there are various decisions to the effect that the assessee is entitled to claim the deduction before appellate authorities if the same was not claimed in the original return or of income but was claimed during the assessment and the appellate proceedings.
The Bench consisting of Waseem Ahmed, Accountant Member, and Siddhartha Nautiyal, Judicial Member observed that “It is an undisputed fact, that the assessee did not make a claim for deduction under section 80-IA of the Act in its return of income. The said claim was made by way of filing revised computation during the course of assessment proceedings In view of the plain language of the Statute, and respectfully following the decision of the Gujarat High Court in the case of Rachna Infrastructure (P.) Ltd., we are of the view that Ld. CIT(Appeals) has not erred in facts and in law in confirming the order of the assessing officer. In the result, the appeal of the assessee is dismissed.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
