Case Law Details
PCIT Vs H.P. Housing & Urban Development Authority (Himachal Pradesh High Court)
Conclusion: Deduction under section 80IB (10) was allowable to assessee as it had a reasonable & bona fide cause for not filing the return of income within the time permitted under Section 139(1). Once in the given facts, assessee had been held entitled to claim the specifically computed deductions, then it should not be burdened with taxes which it was otherwise not liable to pay under law.
Held: Assessee filed its return belatedly u/s. 139(4). Thereafter, assessee filed revised ITR wherein for the first time assessee claimed deduction u/s. 80-IB(10) (which was not claimed in earlier ITR). AO disallowed the claim for deduction u/s. 80-IB(10) on the ground that since the ITR was not filed within due date specified u/s. 139(1), such claim was not allowable pursuant to section 80AC. The claim for deduction u/s. 80-IB(10) was also examined on merits and AO held that project was not eligible for benefit of section 80-IB. CIT(A) held that project was eligible for deduction and stated that part of it could be allowed. However, CIT(A) concluded that assessee could not revise the ITR u/s. 139(5) which was already filed belatedly u/s. 139(4) and accordingly held that the claim for deduction u/s. 80-IB(10) was not valid. Tribunal held that the claim for deduction u/s. 80-IB(10) could not be made based on a non-est ITR i.e. revised ITR in which claim was made u/s. 80-IB(10). Therefore, a return of income filed under Section 139(4) could not be said to be meeting the requirements of Section 139(1) in context of Section 80AC, which specifically insisted upon filing of return by the due date prescribed under Section 139(1) for availing the admissible deductions. It was held that assessee was a statutory organization created by the State for providing & develop housing infrastructure. It took up a defence of late audit for belated filing of its return of income. Assessee dealt with public money, the State exchequer. CIT and Tribunal had concurrently held on facts after undertaking a lengthy & pain staking exercise that assessee was actually entitled to deductions under Section 80IB(10). The specific amount of deduction admissible to it had also been computed. The ground put forth by the assessee for not filing the return of income within the time provided under Section 139(1) had been accepted on facts, that assessee had a reasonable & bona fide cause for not filing the return of income within the time permitted under Section 139(1). Therefore, once in the given facts, assessee had been held entitled to claim the specifically computed deductions, then it should not be burdened with taxes which it was otherwise not liable to pay under law.
FULL TEXT OF THE JUDGMENT/ORDER OF HIMACHAL PRADESH HIGH COURT
The revenue has filed this appeal against the order of learned Income Tax Appellate Tribunal (in short ITAT) allowing certain deductions to the assessee under Section 80IB(10) of the Income Tax Act even though its return of income for assessment year 2006-2007 was filed beyond the period prescribed under Section 139(1) of the Act and the deductions were claimed only in the revised return furnished later.
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