Whether section 80C & 80D deduction can be claimed by filing application U/s 154?


Whether section 80C & 80D deduction can be claimed by filing application U/s 154?


Very common issue often arises with regard to deduction under section 80C & 80D by application U/s 154 without the same being claimed in the original ITR?

The issue was under consideration before Kolkata ITAT in the following case:



Shri Sandip Chattopadhyay



[ITAT, Kolkata Bench]


[ITA No. 125/Kol/2023]

Let us have a short overview of the case:


In this case, while filing the return of income, assessee had failed to claim the deduction under section 80C for repayment of principal amount of housing loan and deduction under section 80D.


Consequent to that assessee, after realizing its mistake, had filed rectification application before CPC under section 154 for rectifying the defects.


However, rectification petition of the assessee was completely ignored by the Assessing Officer even though necessary evidence in support of his claim of deduction under section 80C and 80D was furnished before the Assessing Officer along with the rectification petition.


The claim of the assessee was rejected by the Assessing Officer only on the ground that such a claim has to be made by filing revised return of income only and the rectification petition filed by the assessee was rejected.


While rejecting the claim, the Assessing Officer relied upon the decision of the Supreme Court in the case of Goetz (India) Ltd. vs. CIT.

Before the Tribunal, the Ld. AR on behalf of assessee contended that merely because the claim has not been made in the return of income, the same cannot be rejected by the Assessing Officer.


By relying upon Circular No.14 of 1955 dated 11.04.1955 issued by CBDT, the assessee contended that the revenue cannot take advantage of mistake/ignorance of the assessee.


The said circular states that the officers of the Department must not take advantage of the ignorance of the assessee about his rights and it is their duty to assist tax payer in every reasonable way particularly in the matter of claiming and securing relief.

With above case detail, ITAT forumulated two issues  as under:


1st Issue: Whether unclaimed deduction can be claimed before the Assessing Officer without filing revised return of income?

2nd Issue: Whether the appellate authority is empowered to allow the claim of deduction which was not claimed in the return of income?

Tribunal adjudicated upon second issue and observed as under:



Whether section 80C & 80D deduction can be claimed by filing application U/s 154?