The ITAT held that the disallowance of the deduction claimed...

The ITAT held that the disallowance of the deduction claimed under section 80P during assessment year 2018-19 was improper. The power conferred on the Assessing Officer by the Finance Act, 2021 to disallow deductions under Chapter VIA while processing returns under section 143(1) is applicable only from assessment year 2021-22 onwards. Consequently, the CPC lacked jurisdiction to disallow the deduction under section 80P for the relevant earlier year during return processing. The tribunal therefore allowed the assessee's appeal, restoring the deduction claimed under section 80P for AY 2018-19.

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