2023 (8) TMI 1060 - AT - Income Tax

Appeal allowed: Late filing not reason to deny deduction under Income Tax Act

Sahakari Ganna Vikas Samiti Versus ITO-2 (5), Chandausi Uttar Pradesh

Sahakari Ganna Vikas Samiti Versus ITO-2 (5), Chandausi Uttar Pradesh - TMI Issues:The denial of deduction claimed under Section 80P of the Income Tax Act due to filing the return after the due date specified under Section 139(1) for Assessment Year 2019-20.Summary:The appeal was filed against the order of the Commissioner of Income Tax (Appeals) concerning the denial of deduction under Section 80P of the Act due to the belated filing of the return. The assessee argued that the denial was not permissible as the relevant amendment authorizing such denial was effective from A.Y. 2021-22, whereas the case pertained to A.Y. 2019-20. The Co-ordinate Bench of Tribunal in a similar case concluded that adjustments under Chapter VI-A were not permissible for assessment years prior to A.Y. 2021-22.The Tribunal held that the denial of the deduction under Section 80P of the Act for filing a belated return was not valid for A.Y. 2019-20, as the relevant provisions were not in force during that period. The Tribunal referred to previous judgments and held that the claim of deduction cannot be denied solely based on the late filing of the return. The intimation under Section 143(1) was deemed invalid, and the assessee's appeal was allowed. The Tribunal directed the authorities to restore the deduction claimed under Section 80P of the Act by the assessee.In conclusion, the Tribunal allowed the appeal of the assessee, highlighting the impermissibility of making adjustments to the deduction claimed under Section 80P of the Act before the relevant amendment came into effect. The Tribunal found merit in the assessee's plea for rectification of the error and directed the authorities to restore the deduction claimed by the assessee.