TMI Blog2022 (8) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment/appellate proceedings as to how it is eligible to claim benefit of section 80D of the Act. While we are aware of the fact that in various cases it has been held that beneficial provisions should be construed liberally and legitimate claim of the assessee should be allowed, even if the assessee has failed to claim the same in its return of income. However, in our considered view, if the language of the Statute is plain and unambiguous and is not open to interpretation so that two views may be possible, then the same represents the legislative intent. Here, section 80A(5) of the Act states that for an assessee to be able to make a claim under Chapter -VI of the Act, such a claim has to be made in the return of income. In view of the plain language of the Statute, and respectfully following the decision of the Gujarat High Court in the case of Rachna Infrastructure (P.) Ltd. [ 2022 (3) TMI 256 - GUJARAT HIGH COURT] we are of the view that Ld. CIT(Appeals) has not erred in facts and in law in confirming the order of the assessing officer. In the result, appeal of the assessee is dismissed - ITA Nos. 472, 473 & 474/Rjt/2017 - - - Dated:- 13-7-2022 - Shri Waseem Ahmed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kot. The deduction u/s.80P of the Act totally disallowing unjustified on facts as also in law. my kindly be deleted. Though the appellant has taken single grounds of appeal viz., the ld. CIT(A)-3 has erred in confirming the disallowance of exemption available to the appellant under section 80P on the interest income amounting to Rs. 39,85,298/- received from providing credit facilities to its farmers member. Such income does not qualify for grant of deduction under section 80P of the Income Tax Act, 1961. Accordingly, he disallowed deduction under section 80P on interest income of Rs. 39,85,298/- Appeal to the CIT(A)-3 did not bring any relief to the appellant. 3. The Ld. CIT (A) has erred in charging interest u/s. 234 in absence of the specific instruction under the Assessment order, my kindly be deleted 4. The Ld. CIT (A) erred in initiating penalty proceeding u/s. 254 rws 271(1)(c) of the Act. my kindly be deleted 5. Your Honor's appellant craves leave to add, alter, amend, or withdraw any or more grounds of appeal on or before the hearing of appeal. ITA No. 474/Rjt/2017 For A.Y. 2014-15 1. The Grounds mentioned hereunder are without pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that deduction under section 80P of the Act claimed by the assessee after issuance of show cause notice is not acceptable and therefore assessee s claim under section 80P is rejected. The AO further held that the assessee is also running a petrol pump and since the sale of petrol and diesel is not restricted exclusively to its members but also to the general public at large, therefore the assessee has not fulfilled all the conditions as laid down under section 80P of the Act. Accordingly, the AO rejected the assessee s claim for deduction under section 80P of the Act. In appeal, Ld. CIT(Appeals) dismissed the appeal of the assessee with the following observations: 7. Decision: 7.1. It is apparent from the Assessment order (para 5 of the Assessment order) as well as the submissions that there is not dispute in the fact that appellant had not made any claim of deduct u/s. 80P in the return of income. It is apparent that A.O. had denied claim of deduction u/s.80P in accordance with provision of the section 80A(5) r.w.s.139 as no claim of deduction was made in the return. Alternatively A.O. had also noted that the petrol pump being run by the appellant cooperative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A in its return of income and raised claim for first time in revision application filed under section 264, by virtue of section 80A(5), said claim could not be granted. While passing the order, the Gujarat High Court made the following observations: 8. However, the Petitioners are faced with the statutory provision contained in sub-section (5) of section 80A of the Act. The Petitioners' claim cannot therefore be accepted de hors the said statutory provision and ordinary principle of the wide powers of the CIT exercising revisional jurisdiction under section 264 of the Act cannot be imported. What sub-section (5) of section 80A of the Act mandates is that, if the assessee fails to make a claim in his return of income for any deduction under the provisions specified therein, the same would not be granted to the assessee. This condition or restriction is not relatable to the Assessing Officer or the Income-tax Authority. This condition attaches to the claim of the assessee and has to be implemented by the Assessing Officer, CIT or the Appellate Tribunal as the case may be. There is no indication in subsection (5) of section 80A of the Act as to why the restriction contained th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at even if the assessee has not claimed a deduction in the return of income, the appellate authorities have power to allow deduction which is allowable under the provisions of the Act. However, as it appears form a reading of the said decision, provision contained in section 80A(5) was not brought to the notice of the Tribunal. Further, the Tribunal did not have the benefit of the decision of the Hon'ble jurisdictional High Court in case of EBR Enterprises (supra) which was subsequently rendered. 11. It may be a fact that the Tribunal has allowed assessee's claim of deduction under section 80P(2)(a)(i) of the Act in assessment years 2010-11 and 2012-13. However, there is nothing on record to suggest that there was any violation of section 80A(5) of the Act. Therefore, the factual position based on which the decisions were rendered in assessment year 2010-11 and 2012-13 are different from the impugned assessment year. Thus, respectfully following the ratio laid down in the decision of the Hon'ble jurisdictional High Court in EBR Enterprises case (supra), we hold that the assessee cannot be allowed deduction under section 80P(2)(a)(i) of the Act, insofar as, the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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