Case Law Details
DCIT Vs Umang Hiralal Thakkar (ITAT Ahmedabad)
ITAT Ahmedabad held that in order to claim deduction under section 80IB(10) of the Income Tax Act, it is mandatory to furnish return within due date of filing original return of income as specified under section 139(1) of the Income Tax Act.
Facts- During the course of assessment, AO observed that the assessee has claimed deduction under chapter VIA of the Act specially under 80IB(10) amounting to Rs. 13,68,61,112/-. Notably, the assessee has filed the return of income beyond the time allowed u/s. 139(1) of the Act as well as the assessee is not a developer as contemplated u/s. 80IB(10) and therefore the deduction u/s. 80IB(10) of Rs. 13,68,61,112/- was disallowed.
Conclusion- Hon’ble Apex Court in case of Wipro Ltd. has categorically held 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. In the present case, the assessee is claiming deduction u/s. 80IB(10) and the Income Tax Statute u/s. 80IB(10) is also uses the word “shall” and therefore the condition of filing the return of income within the due date is mandatory in nature.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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