Appeal granted for deduction u/s 80P(2)(d) despite late filing

The ITAT Pune allowed the appeal, overturning the decision to deny the deduction u/s 80P(2)(d) based on the late filing of the return. The assessee's deduction u/s 80P(2)(d) for Rs. 4,06,360/- on interest from cooperative banks was granted as the return was filed within the extended due date as per the circular.

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Issues involved: Appeal against denial of deduction u/s 80P of the Income-tax Act on interest from cooperative banks.

Summary:

Issue 1: Denial of deduction u/s 80P(2)(d) due to late filing of return

The appeal arose from the order of the CIT(A) in National Faceless Appeal Centre, Delhi u/s 250 of the Income-tax Act, 1961, concerning the assessment year 2020-21. The only issue raised was the addition of Rs. 4,06,360/- by the Assessing Officer on account of denial of deduction u/s 80P of the Act on interest from cooperative banks. The assessee filed the return within the extended due date of 10-11-2021, but the deduction was disallowed based on late filing. The CIT(A) upheld this decision, citing non-compliance with section 80AC of the Act due to the belated filing. However, the ITAT Pune Vice President noted that the return was filed within the extended due date as per the circular, and ruled in favor of the assessee, directing the grant of deduction u/s 80P(2)(d) for Rs. 4,06,360/-.

Conclusion:
The ITAT Pune allowed the appeal, overturning the decision to deny the deduction u/s 80P(2)(d) based on the late filing of the return.

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