IN THE INCOME TAX APPELLATE TRIBUNAL ‘SMC’ BENCH : BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE – PRESIDENT AND SHRI KESHAV DUBEY, JUDICIAL MEMBER Assessment Year : 2018-19

Shri Ajith M Kumar, No. 57, Railway Parallel Road, Kumara Park West, Bangalore, Karnataka – 560 020. PAN: ALBPK8346F	Vs.	The Deputy Commissioner of Income Tax, Circle 3(3)(1), Bengaluru.
APPELLANT		RESPONDENT

Date of Hearing : 17-12-2025 Date of Pronouncement : 27-01-2026

ORDER

PER PRASHANT MAHARISHI, VICE – PRESIDENT

1. This captioned appeal is filed by Shri Ajith M Kumar (the Assessee/

Appellant ) for Assessment Year 2018-19 against the Appellate Order passed by the National Faceless Appeal Centre, Delhi (the Ld. CIT(A))

dated 08.09.2025 wherein the Appeal filed against the reassessment order dated 20.12.2023 passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Income Tax Act, 1961 was partly allowed. Therefore, the Assessee is aggrieved.

2. The brief facts of the case show that Assessee is an individual who did not file his return of income for Assessment Year 2018-19. As per the information, it was found that the Assessee has received salary of Rs 32,45,753/- during this year and therefore the case of the Assessee was reopened by issuance of notice u/s. 148 of the Act. The Assessee remained non-responsive during the Assessment proceedings and therefore the notice u/s. 144 of the Act was issued to the Assessee wherein there was no response. The Ld. Assessing Officer issued a notice u/s. 133(6) of the Act to Tata Starbucks Private Limited which has provided the information that Assessee has recipient of salary of Rs. 37,98,389/- on which TDS of Rs. 6,92,621/- has been deducted. As there is no reply from the Assessee Ld. Assessing Officer passed the Assessment Order wherein the total income of the Assessee from salary was assessed at Rs. 37,98,390/-

and further no credit for TDS was granted.

3. The Assessee preferred an Appeal before the Ld. CIT(A) wherein he filed a detailed written statement stating that due to the death of his father and ill health of his mother, assessee could not file return of income. The Assessee submitted that his salary income is Rs. 32,45,753/- after considering the HRA exemption of Rs. 5,52,636/- and further he has also earned the bank interest and dividend. He has also claimed deductions u/s. 80C, 80D and 80TTA of the Act. The Ld. CIT(A) referred to the provisions of section 80AC of the Act stating that as the Assessee has not furnished his return of income, no such deduction shall be allowed to him. Accordingly, the addition of Rs. 37,98,389/- was confirmed and directed the Assessing Officer to verify the claim of tax credit of Rs. 6,91,621/-.

4. Against the Appellate Order, the Assessee is in appeal.

5. Before us, the claim of the Assessee is that as per Form No. 16, the Assessee is entitled to exemption of the perquisites of Rs. 21,600/- as well as deduction of HRA of Rs. 5,52,636/-. With respect to the deduction, it was stated that provisions of 80AC prohibit the deduction under chapter VI part C and the deduction claimed by the Assessee under 80C and 80D are not with respect to that. Thus, he submits that the deduction shall be allowed to the Assessee.

6. The Ld. Departmental Representative Shri Ganesh R Ghale, Standing Counsel for Revenue vehemently supported the orders of the Ld.

lower authorities.

7. We have carefully considered the rival contentions and perused the orders of the Ld. lower authorities. We find that the income of the Assessee earned from salary has already been chargeable to tax and further the Assessee’s claim of deduction of HRA as well as perquisites was not allowed. We find that if the salary income is to be computed under the provisions of section 15 to 17 of the act , all the deduction contained therein are required to be provided to the Assessee, if found in accordance with law. There is no bar in any of the section that certain deductions claimed under the head salary are allowable only on fili

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