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Sunny Honey (Student)     05 December 2008

Deduction u/s 80 AC (URGENT REPLY NEEDED)

Are provisions of section 80AC of the Income Tax Act, 1961 mandatory in its application. Is so can the department waive of the disallowance of said deduction (in case the return if filed after the due date of filing return u/s 139(1) of the Income Tax Act, 1961 ? if answer to the above said question is in affirmative then what basis can be taken for availing waiver of such disallowance. (CAN THE NEGLIGENCE OF THE CHARTERED ACCOUNTANT BE PLEADED AS A MODE OF WAIVING OF THE SAID DISALLOWANCE). PLEASE QUOTE ANY CITATIONS (OF ANY JURISDICTIONAL HIGH COURT IN INDIA PREFERBLY OF SUPREME COURT) - URGENT REPLY NEEDED. . 


 4 Replies

Rajendran Nallusamy (Advocate)     05 December 2008

 Section 80AC stipulates compulsory filing of return of income on or before the due date specified under section 139(1), as a pre-condition for availing benefit under the following sections –

(1) Section 80-IA applicable to industrial undertakings or enterprises engaged in infrastructure development, etc.

(2) Section 80-IAB applicable to undertakings or enterprises engaged in any business of developing a special economic zone. 

(3) Section 80-IB applicable to certain industrial undertakings other than infrastructure development undertakings.

(4) Section 80-IC applicable to certain undertakings or enterprises in certain special category States.

(ii) New section 80-ID has been inserted to provide a tax holiday in respect of profits and gains from the business of hotel or business of building, owning and operating a convention centre in NCR. 

(iii) New section 80-IE has been inserted to provide a tax holiday in respect of profits and gains derived by certain undertakings in North-Eastern States.

(iv) Consequently, section 80AC has been amended to make filing of return on or before the due date mandatory for availing benefit of deduction under sections 80-ID and 80-IE also.

(Effective from A.Y.2008-09)

N.K.Assumi (Advocate)     07 December 2008

Thank you


Sunny Honey (Student)     08 December 2008

sir, ur contention and analysis of the section 80AC is wrong, it is applicable w.e.f. AY 2006-07, so try to give another possible answer of problem in hand.





Smriti Sahay   01 March 2019


Section 80AC is directory in nature and not mandatory. Yes, waiver is possible subject to the condition that delay was beyond the control of the assessee. Better guidance can be provided once you will brief out the case in detail.

In case of negligence of CA, remedy can be asked from the department since there was no mistake of assessee


CA Smriti Sahay


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