Sec 80A(5) of Income Tax Act

This query is : Resolved

CA. Arul Mozhi Varman (Querist)
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13 January 2011 Sec 80A(5)of Income Tax Act says,
"Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading “C.—Deductions in respect of certain incomes”, no deduction shall be allowed to him thereunder.]"

As per ICAI's post budget memorandum,

"This provision is inequitable and unfair even to bonafide assesses.
As per Circular No.14 dated 11/4/1955 the Assessing Officer is
duty bound to allow deduction even if the same has not been
claimed by the assessee. Hence, the same may be appropriately
amended."

My Queries are

1. Whether the word "return" in sec 80A(5) includes revised return ???

2. Why the Govt. has passed this provision ??? What is the background/history of this provision??

3. Why the Govt should punish the ignorance??

Thanks & regards,
Arul.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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13 January 2011 Whether the word "return" in sec 80A(5) includes ???

yes , as given in section 139(5) the return filed under section 139(5) shall be deemed to be return filed u/s 139(1) so it includes revised return.

2. Why the Govt. has passed this provision ??? What is the background/history of this provision??

As per Vinod Gupta sir, the object is to prevent the practice when a person claim deduction for same expenses in two heads in same or two different assessment year

3. Why the Govt should punish the ignorance??

see government has given this exemption and this is one of the condition to be eligible for exemption !! Govt. is giving you exemption it is not your right but privilege !!