Tribunal Permits Deduction Claim; Disallowance Under Sec. 143(1)(a)(v) Not Retroactive, Finance Act 2021 Applied.

The Tribunal allowed the appellant's appeal against the disallowance of the sec. 80P deduction claim for the assessment year 2018-19. It held that the disallowance under sec. 143(1)(a)(v) was not applicable retrospectively, as per the Finance Act 2021. Consequently, the disallowance made on 03.09.2019 was deemed unsustainable in law, and the Tribunal set aside the decision, permitting the deduction claim.

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Issues involved: Appeal against disallowance of sec. 80P deduction claim u/s 143(1) of the Income Tax Act, 1961 for assessment year 2018-19.

Summary:

Issue 1: Disallowance of sec. 80P deduction claim
The appellant's appeal for assessment year 2018-19 challenged the disallowance of the sec. 80P deduction claim amounting to Rs. 39,62,982/- by the DCIT-CPC under sec. 143(1) of the Income Tax Act, 1961. The Tribunal noted that the deduction under Chapter-VIA had been made disallowable in sec. 143(1)(a)(v) "processing" vide Finance Act 2021 effective from 01.04.2021, without retrospective effect. Given the specific legal position, the Tribunal held that the disallowance of sec. 80P claim in the impugned processing dated 03.09.2019 was not sustainable in law. Citing the case of Commissioner of Customs (Imports), Mumbai vs. M/s. Dilip Kumar And Co. & Ors. [2018] 9 SCC 1 (SC), the Tribunal allowed the appellant's appeal, setting aside the disallowance.

Decision:
The Tribunal allowed the assessee's appeal, holding that the disallowance of sec. 80P deduction claim was not sustainable in law for assessment year 2018-19, based on the specific legal provisions and precedents cited.

This summary provides a detailed overview of the issues involved and the Tribunal's decision regarding the disallowance of the sec. 80P deduction claim in the mentioned legal judgment.

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