Tribunal Upholds Income Tax Appeal Dismissal for Co-op Society, Ineligible for Deduction

The Tribunal upheld the Commissioner of Income Tax (Appeals) order, dismissing the appeal by the Co-operative housing Society. The decision was based on the application of the amended section 80AC to the assessment year, ruling the assessee ineligible for deduction u/s 80P due to late filing of the return of income.

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Issues:
Disallowance of deduction u/s 80P(2)(d) due to late filing of return of income.

Analysis:
The appeal was filed against the order of the Commissioner of Income Tax (Appeals) disallowing the assessee's claim of deduction u/s 80P(2)(d) of the Income Tax Act, 1961, citing late filing of the return of income. The assessee, a Co-operative housing Society, earned interest income from deposits with Co-operative Banks and claimed deduction under section 80P(2)(d) of the Act. The CIT(A) dismissed the appeal on the grounds that the return was filed after the due date specified under section 139(1) of the Act for the relevant assessment year. The assessee argued that section 80AC, as applicable to the assessment year, did not restrict the deduction u/s 80P based on the due date of filing the return. The provisions of section 80AC were amended by the Finance Act, 2018, to include all deductions under Chapter-VIA, but the assessee contended that this amendment did not apply to section 80P deductions.

The Department, represented by Ms. Beena Santosh, supported the decision to disallow the deduction, emphasizing that the late filing of the return made the assessee ineligible for deduction u/s 80P as per section 80AC of the Act. The Tribunal examined both arguments and noted that the return was indeed filed after the due date. The assessee highlighted that the un-amended provision of section 80AC did not impose restrictions on claiming deduction u/s 80P for late filing of the return, and the amendment by the Finance Act, 2018, did not affect section 80P deductions. The Tribunal agreed that the amended section 80AC would apply to the assessment year in question, and therefore, the CIT(A) correctly dismissed the appeal.

In conclusion, the Tribunal upheld the impugned order, dismissing the appeal by the assessee. The decision was based on the application of the amended section 80AC to the assessment year and the ineligibility of the assessee for deduction u/s 80P due to the late filing of the return of income.

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