Case Law Details
Canadian Specialty Vinyls Vs ITO (ITAT Delhi)
ITAT Delhi held that deduction u/s 80IC of the Income Tax Act is permissible on account of belated filing of return beyond the prescribed time limit u/s 139(1) of the Income Tax Act.
Facts- Revenue mainly contested that the Id. CIT(A) has wrongly held that the assessee is entitled to claim deduction u/s 80IC of the Act, because, the claim was not made in the return of income filed within the prescribed time limit provided u/s 139(1) of the Act.
Conclusion- Held that in the present case, the assessee is claiming deduction u/s 80IC of the Act, therefore, the same would be governed by the proposition rendered by the Hon’ble Supreme Court in the case of G.M. Knitting Industries Pvt. Ltd. (supra), as per which the making of a claim of deduction is mandatory, but, timing is directory. Even if the claim is made during the assessment proceedings, such a claim is to be allowed. In view of the above, we are inclined to hold that the AO was not right in holding that the assessee is not entitled to claim deduction u/s 80IC of the Act on account of belated filing of return beyond the prescribed time limit u/s 139(1) of the Act. The ld.CIT(A) was justified and correct in holding that the assessee is entitled to claim deduction u/s 80IC of the Act as it was prevented by sufficient cause in filing the return of income within the prescribed time limit. In view of the proposition rendered by the Hon’ble Supreme Court in the case of G.M. Knitting Industries Pvt. Ltd. (supra), the claim of the assessee has reached to a higher pedestal because the Hon’ble Supreme Court has categorically held that for making a claim under Chapter VI-A of the Act which also includes provision of deduction u/s 80IC of the Act and the making of such claim for deduction is permissible even after filing of the return, but, before completing the assessment meets directory requirement in the filing of return of income.
FULL TEXT OF THE ORDER OF ITAT DELHI
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