Section 80P deduction cannot be denied in summary processing for belated filing where the disallowance provision applies prospectively.

Section 80P(2)(a)(i) deduction could not be denied in summary processing under section 143(1)(a) merely because the return was filed after the due date under section 139(1). The Tribunal applied strict interpretation to the processing provisions and held that the specific disallowance limb in section 143(1)(a)(v), inserted by the Finance Act 2021 with effect from 1 April 2021, operated prospectively. For the assessment year concerned, the claim could not be rejected as an apparent error under section 143(1)(a)(ii), and the contrary reasoning relied on did not control the case. The disallowance in intimation was therefore held unsustainable.

---

---

Issues: Whether the assessee's claim for deduction under section 80P(2)(a)(i) could be disallowed in intimation under section 143(1)(a) merely because the return was filed beyond the due date under section 139(1).

Analysis: The Tribunal followed its coordinate bench decision and held that the specific disallowance provision in section 143(1)(a)(v), inserted by the Finance Act, 2021 with effect from 01.04.2021, applied prospectively. For the assessment year in question, the assessee's deduction claim could not be rejected in summary processing by invoking section 143(1)(a)(ii) as an apparent error. The Tribunal also noted that the relied upon contrary reasoning did not govern the case and applied strict interpretation to the processing provisions.

Conclusion: The disallowance of the section 80P deduction in intimation under section 143(1)(a) was unsustainable and the issue was decided in favour of the assessee.

---