Subject: Allowability of deduction under Section 80P(2)(b) despite incorrect claim under Section 80P

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This query is : Resolved

Suresh S. Tejwani (Querist)
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12 May 2026 Whether the Assessing Officer was justified in denying deduction under Section 80P(2)(b) of the Income-tax Act, 1961 merely because the appellant had inadvertently claimed the same under Section 80P(2)(f) in the return of income, despite the appellant being otherwise eligible for such deduction?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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12 May 2026 An Assessing Officer should not deny a deduction for which a taxpayer is otherwise eligible just because of an incorrect section reference in the return. Substance prevails over form, and judicial precedents support the view that bona fide errors should be corrected to ensure the taxpayer pays only the tax legally due.

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