Extended due date for return filing protects section 80P deduction; belated filing objection could not sustain disallowance.

Deduction under section 80P was claimed to be unavailable because the return was said to be filed beyond the original due date. The Tribunal noted that CBDT had extended the due date under section 119 to 31.10.2018, and the return filed on 30.10.2018 was therefore within time. On that basis, the disallowance linked to section 80AC could not stand; the only consequence for filing within the extended period was interest under section 234A as mentioned in the circular. The deduction under section 80P was directed to be allowed.

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Issues: Whether deduction under section 80P of the Income-tax Act, 1961 could be denied on the ground that the return was filed beyond the original due date, when the due date had been extended by CBDT circular.

Analysis: The assessee's claim was rejected below only because the return was treated as not filed within section 139(1). The Tribunal noted that CBDT, by order under section 119, had extended the due date for the relevant assessment year to 31.10.2018. Since the return had been filed on 30.10.2018, it was within the extended time limit. In that situation, the disallowance based on section 80AC could not survive, and the only statutory consequence for filing within the extended time was the liability to interest under section 234A, as stated in the circular.

Conclusion: The denial of deduction under section 80P was unsustainable, and the deduction was directed to be allowed in favour of the assessee.

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