Section 80P deduction cannot be denied in processing for late return filing where the enabling amendment was not yet in force.

Deduction under section 80P could not be denied at the processing stage under section 143(1) merely because the return was filed after the due date under section 139(1) for the relevant year. The Tribunal noted that express authority to make such a disallowance was introduced only by the amendment to section 143(1)(a)(v) with effect from 1 April 2021, and that provision was not applicable to the assessment year in question. The late filing also did not amount to an apparent incorrect claim under section 143(1)(a)(ii). Following jurisdictional precedent, the Tribunal held that the adjustment was not sustainable as a prima facie processing disallowance.

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Issues: Whether deduction under section 80P could be denied at the processing stage under section 143(1) merely because the return was filed beyond the due date under section 139(1) for the relevant assessment year.

Analysis: The Tribunal noted that the disallowance of deduction under section 80P for late filing was specifically enabled by the amendment to section 143(1)(a)(v) introduced with effect from 1 April 2021. For the assessment year in question, that enabling provision was not in force. The adjustment also did not fit within the category of an apparent incorrect claim under section 143(1)(a)(ii), because late filing of the return was not one of the cases treated as an incorrect claim under the Explanation. The Tribunal followed the jurisdictional precedent and held that denial of section 80P deduction on this ground could not be sustained as a prima facie adjustment.

Conclusion: The denial of deduction under section 80P at the processing stage was not justified, and the assessee succeeded on the issue.

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