Shri Ayush Biyani Vs ITO (ITAT Delhi)
ITAT Delhi Allows Deduction u/s 80C – Omission in Return Rectifiable, Restriction of 80AC Not Applicable Prior to 2018
Delhi ITAT allowed the appeal of Ayush Biyani, directing AO to grant deduction u/s 80C of ₹1,50,000/- which was omitted to be claimed in the original return.
Assessee, an individual, filed return declaring income of ₹13,18,200/- but inadvertently omitted claim of deduction u/s 80C of ₹1,50,000/-. Proceedings were reopened u/s 147 based on order u/s 148A(d) dated 26.03.2023. Reassessment was framed u/s 147 r.w.s. 144B on 12.03.2024.
Before NFAC, Assessee raised additional ground claiming deduction u/s 80C. NFAC rejected the claim holding that omission was deliberate & reliance on CBDT Circular No.14 (XL-35) dated 11.04.1955 was misplaced.
Tribunal’s Observed that Provisions of section 80AC, which made timely filing of return a precondition for deductions under Chapter VIA, came into effect only from 01.04.2018. For AY 2016-17, there was no statutory bar on claiming deduction u/s 80C through appellate proceedings if return was filed. Assessee had duly filed return; omission of deduction in original return could not be treated as deliberate. Once eligible investment was made, deduction u/s 80C must be allowed in accordance with law.
