Assessee entitled to claim Sec-80IC Deduction even in case of belated filing of ITR: ITAT

The Income Tax Appellate Tribunal (ITAT) in the matter of M/s. Canadian Specialty Vinyls vs ITO has reiterated that the assessee is very well entitled to claim deduction u/s 80IC of the Income Tax Act even in case of belated filing of Income Tax Return (ITR). This was based on the judgment of the Hon’ble Supreme Court in the case of G.M. Knitting Industries Pvt. Ltd. (supra), which was followed by the coordinate Bench of the ITAT, Pune in the case of Krushi Vibhag Karmchari Vrund Sahakari Pat Sanstha (supra).

In the present case, the return of income of the assessee for AY 2015-16 was filed beyond the prescribed time limit u/s 139(1) of the Act. For that the ld.CIT(A) has recorded a categorical finding that the assessee was prevented by sufficient cause in filing the return within the prescribed time limit perhaps due to illness of executive partner of assessee.

As per ITAT, it was logical to conclude that the assessee is entitled to get a deduction u/s. 80IC of the Act, as the claiming such deduction, which is part of Chapter VI-A of the Act, in the return of income filed within the prescribed time limit, is not mandatory but directory.

Click here to Download the Order