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Section Deduction through return of income filed within specified date 80AC Return of income has to be filed prior to due date as per section 139(1) 54(2) Refers to date of furnishing return as per section 139 139(3) Carry forward of loss is permitted if such return of loss is filed within the time limit provided by section 139(1) As evident from the above that for claiming any such deduction under these sections, return of income has to be filed within the specified date u/s.139(1) whereas u/s.80A(5), there is no such specific limitation of date, therefore, in absence of any specific limitation of date, the „word‟ „return of income‟ provided u/s.80A(5) has to be construed to mean any such return of income filed prior to the completion of assessment or return of income filed during the assessment proceedings, provided the original return of income was filed within the time limit prescribed u/s.139(1). Obviously, appellant complies with the provision of section 80AC of the Income-tax Act. When the original return of income has been filed well within the „due date‟, the revised return filed thereafter before the completion of assessment proceedings or assessment order is passed, it is a valid return of income to be considered by the Assessing Officer, otherwise every purpose of giving such right to such appellant would be frustrated. The revised of return of income is essential for removal of defects of original return. It obviously corrects short comings from which it suffered. The revised return must therefore, be considered as it was originally filed vide Thakur Dharmapur Sugar Mills Ltd. vs. CIT (1973) 90 ITR 236, 239 & 240 (Allahabad) and Gopaldas Parshottamdas vs. CIT (1941) 9 ITR 130 (All.). It is important to point out that when a revised return cures the defects in the original return and does not obliterate the later, the assessment means on the basis of original return of income ignoring the revised return is liable to be set aside vide CIT vs. Chitranjali (1986) 159 ITR 801 (Cal).

Further, in the case of Emerson Network Power India (P) Ltd. vs. ACIT (2009) 122 TTJ/27 SOT/ 19 DTR jurisdictional Hon‟ble ITAT, Mumbai „H‟ Bench has held that any such claim made at the time of assessment but not made in original return nor made by way of valid revised return cannot be denied. AO is obliged to give due relief to the assessee or entertain its claim if admissible as per law even though the assessee had not filed revised return. It is further held by the Hon‟ble ITAT that the legitimate claim of assessee should not be rejected on technical grounds. The same proposition is also there in the case of Chicago Pneumatic India Ltd. vs. DCIT (2007) 15 SOT 252 (Mum). Therefore, in the background of all these decisions and facts of the case, the denial of claim of deduction of the appellant made through revised return of income during the course of assessment proceedings and well before the passing of assessment order, is not tenable in the eye of law. It is very evident from the evidences on records and as has been admitted by the Assessing Officer that appellant has fulfilled all the conditions laid down u/s. 8IB(10), therefore, appellant is entitled for deduction in respect of profit derived from the housing project known as „Eden Garden‟ at Kharghar, Navi Mumbai. Thus, AO is directed to allow the claim of deduction of Rs.1,94,12,489.00 and also as per decisions of ensuing paragraphs having consequential effect on profit u/s. 80IB(10) of the Income-tax Act, to the appellant while giving appeal effect.

7. We have considered rival contentions, carefully gone through the orders of the authorities below and also deliberated on the judicial pronouncements cited at bar. From the record we found that assessee is engaged in development of housing project. However, the original return was filed well within the time u/s.139(1), wherein the assessee has not made any claim of deduction u/s.80IB(10). The assessee filed revised return wherein deduction u/s.80IB(10) was claimed, however, while framing assessment the AO decline claim of deduction in view of the provisions of Section 80A(5) of the Act. As per our considered view, Section 80A(5) only requires filing of return, nowhere it suggests that claim should be made in the original return and not by way of revised return. When the original return of income has been filed well within the due date, the revised return filed thereafter before the completion of assessment proceedings, is a valid return of income to be considered by the AO. The assessee has been given opportunity to file revised return u/s.139(4) for removal of the any defect in the original return. The CIT(A) considering the remand report and the written submission of the assessee and after applying various judicial pronouncements recorded a finding to the effect that assessee has filed revised return claiming deduction u/s.80IB(10) before completion of assessment. Following the judicial pronouncement laid down by the Hon'ble Allahabad High Court in the case of Thakur Dharmapur Sugar Mills Ltd. 90 ITR 236, held that revised return must be considered as it was originally filed. It is the duty of the AO to allow legal claim if made before him and provided it all the conditions of the claim. Nowhere the AO has alleged that assessee has failed to comply with any of the conditions of Section 80IB(10), only grievance of AO was that claim was made in the return filed u/s.139(1). After applying the judicial pronouncements laid down by various High Courts and Tribunal, the CIT(A) recorded a finding to the effect that both the original return was filed well within the time limit prescribed under the law and the revised return filed before the AO completing the assessment that the assessee has fulfilled all the conditions u/s.80IB(10), therefore, entitled for deduction in respect of housing project. The findings recorded by the CIT(A) have not been controverted by department by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the order of CIT(A) in allowing assessee's claim for deduction u/s.80IB(10) of the Act.