MINDA SAI LIMITED MERGED WITH MINDA CORPORATION LTD.,NEW DELHI V. DCIT CENTRAL CIRCLE-13, NEW DELHI

ITA 3071/DEL/2023

AI Insights

The case involves Minda Sai Limited, which appealed against the order of the Commissioner of Income-tax (Appeals)-28, New Delhi, confirming the disallowance of a deduction claimed under section 80IA of the Income Tax Act, 1961. The deduction was initially claimed in a revised return filed under section 139(5), after the original return filed under section 139(1). The tax authorities disallowed the deduction on the grounds that it was not claimed in the original return and lacked substantiating documents. The Tribunal noted that the due date for filing the return was extended due to the assessee's international transactions, which was not considered by the lower tax authorities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126205 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Other Referred Cases: M/s Goetz India Ltd vs CIT (2006) 284 ITR 323
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: SALIL AGGARWAL
• Keywords: Revised return; Transfer pricing; International transaction; Deduction u/s 80IC; Dismissed; Section 139(1); Commissioner; Statistical purposes; Transactions; Due date of filing; Claim of deduction
• Section: 143(3); 139(1); 80IA; 139(5); 80IC; 80IC

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.3071/Del/2023 Assessment Year: 2017-18 Minda Sai Limited Merged with Minda Corporation Ltd., A-15, Ashok Vihar, Phase-1, H.O. Ashok Vihar, North West, Delhi – 110 052. PAN: AAAFT4536E Vs DCIT, Central Circle-13, New Delhi. (Appellant) (Respondent) Assessee by : Shri Salil Aggarwal, Sr. Advocate; Shri Shailesh Gupta, Advocate; & Shri Madhur Aggarwal, Advocate Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 18.03.2025 Date of Pronouncement : 23.04.2025 ORDER PER ANUBHAV SHARMA, JM: This is an appeal preferred by the assessee against the order dated 18.08.2023 of the Commissioner of Income-tax (Appeals)-28, New Delhi (hereinafter referred to as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No.26/10412/2019-20/No.26/10711/2016-17 arising out of the appeal before it against the order dated 29.12.2019 passed u/s 143(3) of the Income ITA No.3071/Del/2023 2 Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ACIT, Central Circle- 13, Delhi (hereinafter referred to as the Ld. AO). 2. On hearing both the sides, we find that primarily the grievance of the assessee is that the ld.CIT(A) has erred in confirming the disallowance of deduction claimed u/s 80IA of the Act which was raised in the revised return of income filed u/s 139(5) of the Act. 3. We find that the ld. tax authorities have denied the deduction as was not claimed in the original return of income filed u/s 139(1) of the Act. In this context, the relevant observations of the ld.CIT(A) in para 6.3 are reproduced below:- “6.3 I have gone through the facts of the case and submission of the appellant placed on record. In this case original Income Tax Return were filed u/s 139(1) of the Income Tax Act on 24/11/2017 and the original return of income so filed was revised u/s 139(5) of the Income Tax Act on 30.03.2019. In the original return of income appellant claimed deduction u/s 80IC of Rs. 74,61,916/- and in the revised return of income additional deduction of Rs 2,49,12,279/- u/s 801A of the Income Tax Act were claimed. Section 139(5) of the Income Tax Act is being reproduced as under:- \"139(5) If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.\" As per section 139(5) of the Income Tax Act the return filed u/s 139(1) of the Income Tax Act can be revised before the expiry of one year from the end of the relevant assessment year if in the original return of income appellant discovers any omission or any wrong statement. Admittedly the appellant filed revised return to claim the deduction u/s 801A of the Income Tax Act which was left to be claimed in the original return of income filed by the appellant. The revised return replaces and substituted the original return. Since revised returns take place of original return. ITA No.3071/Del/2023 3 Hon'ble Supreme Court in the case of M/s Goetz India Ltd vs CIT reported in (2006) 284 ITR 323 It has been held that the claim should be made by filing the revised return of Income. The said decision of Apex Court supports the contention of the appellant. In this case deduction u/s 80IA of Rs 2,49,12,279/-has been claimed by filing the revised return of income u/s 139(5) of the Income Tax Act. The AO disallowed the deduction claimed by AO on the ground that the appellant has not claimed the deduction in the return filed U/s139(1) of the Act and not filed the documents (Form 10CCB) to substantiate the claim u/s 801A of the Income Tax Act. However, it has been found from the notice dated 25/12/2019 that AO asked question with regard to allocation of direct and indirect expenses. The appellant submitted the reply along with documentary evidence submitted during assessment proceeding which was placed in the paper book. It has been found that form 10CCB with all attachment i.e. audited balance sheet and profit and loss account of eligible unit in respect of deduction of Rs.2,49,12,279/- u/s 801A(4)(iv) of the I.T. Act, 1961 in respect of unit located at Surajpur, Gautam Budh Nagar has been submitted. The Audited balance sheet and profit and loss account of eligible unit along with form 10CCB of respective units have been submitted. From the facts of the case, it has been found that the appellant had not claimed the deduction U/s 80IA of the Act in its original return of income but had claimed in the revised return. The original return of income was filed U/s139(1) on 24.11.2017 and the revised return was filed on 30.03.2019 by the appellant. The due date of filing of the return U/s 139(1) for the AY 2017-18 was 07.11.2017, however, the appellant has not even filed the original return of income within due date. The provisions of Section 80AC clearly state that deduction u/s 801A will be allowable only if the return of income filed on or before the specified date U/s 139(1) of the Act. Section 80AC is reproduced below: “Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- (1) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-LA or section 80-1AB or section 80-IB or section 80-IC or section 80-ID or section 80-IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading \"C.-Deductions in respect of certain incomes\", ITA No.3071/Del/2023 4 no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.]” From the above, it is quite apparent on bare perusal of Section 80AC that the provisions contained therein are mandatory. In as much as it is specifically provides for the consequences that would follow if the return of income is not furnished with in the time limit specified in Section 139(1) of the Act. It is well settled if the assessee wants to avail deduction u/s 80IA it has to necessarily furnish its return of income containing such claim before the due date specified in Section 139(1). The language of Section 80AC is negatively worded in as much as it provides clear terms that deduction u/s 801A shall not be allowed if the return of income containing such claim is not furnished by the due date specified in Section 139(1). In the face of such clear language of Section 80AC, I am of the opinion that the provisions of section 80AC are mandatory in nature and therefore failure to furnish the return of income filed in due date specified in Section 139(1) would disentitle the assessee for the claim of deduction u/s 801A. Thus, the deduction u/s 80IA cannot be available unless the return is furnished before the due date specified in Section 80AC, and the claim of the assessee for deduction cannot be entertained in contravention of the provisions of section 80AC. In view of the above, since the appellant has failed to claim the deduction u/s 80IA in its regular return of income U/s 139(1) and also failed to file the return of income within due date, the fresh claim of deduction in the revised return cannot be allowed to the appellant. Hence, the order of the AO is confirmed and accordingly the ground nos. 5 & 6 are dismissed.” 4. Although the ld. DR has supported the findings of the ld. tax authorities below, what we find relevant is that the ld. tax authorities have fallen in error in not considering the fact that although the claim was made for the first time in the revised return, however, as the assessee had international transactions for which TP study was also conducted and filed, the due date was 30.11.2017. Thus, that being the case, the ld. tax authorities below were not justified in taking into consideration the date of return of income to be 07.11.2017. ITA No.3071/Del/2023 5 5. We are accordingly inclined to allow the grounds and setting aside the impugned assessment order, direct the ld.AO to take into consideration the claim of the assessee filed in the revised return and pass an order afresh. Needless to mention that due opportunity of hearing to the assessee shall be given. 6. The appeal is allowed for statistical purposes. Order pronounced in the open court on 23.04.2025. Sd/- Sd/- (M. BALAGANESH) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated:23rd April, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "