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2023 (11) TMI 536 - AT - Income TaxFresh claim in the return of income filed pursuant to notice u/s 153A - assessee has not claimed the benefit of deduction u/s 80IA in the original return of income, but was claimed while filing the return of income in pursuance to the notice issued u/s 153A - HELD THAT:- The assessee has not claimed deduction u/s 80IA in the original proceedings and also have not filed the audit report however, at the time of filing of return of income u/s 153A of the Act, the assessee had filed the audit reports and claimed deduction u/s 80IA of the Act. A perusal of the assessment order passed u/s 143(3) r.w.s. 153A shows that the AO has accepted the income determined as per the assessment order u/s 143(3). Thus, no addition was made by the Assessing Officer during the assessment proceedings u/s 143(3) r.w. section 153A - In our view, the AO was right in denying the claim of deduction u/s 80IA to the assessee as no addition was made in the hands of the assessee during the assessment proceedings on account of any incriminating material. Further, the issues which have attained finality, in an unabated assessment are required to be restricted having a live link with the incriminating material. We are of the opinion that re-assessment proceedings u/s 153A is not a denovo re-assessment as the re-assessment can only be made with respect to the incriminating material found during the course of search. We are of the opinion that the assessee cannot be permitted to make a fresh claim of deduction in the re-assessment proceedings u/s 153A of the Act. The above said finding is not only based on the interpretation of the provision of section 153A r.w.s. 139(1) of the Act, but also based on the mandatory provisions which require the assessee to file the audit report along with the original return of income for claiming the deduction under Chapter VI of the Act. Once the assessment proceedings have attained finality, then the additions can only be made in the hands of the assessee based on the incriminating material unearthed during the search. The Assessing Officer has no reason to entertain any fresh claim, which was not raised in the original return of income. Hence, we are of the considered opinion that the assessee is not entitled to file fresh return of income under Section 153A of the Act, with respect to claiming the deductions which had not been claimed by the assessee earlier in the original return of income. Hence, respectfully relying upon the above said decisions, we are of the opinion that the legal ground raised by the Revenue regarding the claim of fresh deduction u/s 80IA at the time of filing the return of income u/s 153A of the Act is sustainable. We are of the considered opinion that the findings of the CIT(A) is not in accordance with law and the assessee cannot be permitted to make a fresh claim of deduction for the first time in the return filed in response to notice u/s 153A of the Act. Thus, the legal ground is decided in favour of the Revenue and against the assessee.
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