2022 (6) TMI 406

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..... The assessee has raised the following grounds of appeal: 1. The order of Commissioner of Income-Tax (Appeals) NFAC, Delhi dt.08.09.21 is opposed to the facts of the case and is not legally maintainable. 2. The first Appellate Authority is not justified in sustaining the disallowance made by the CPC by disallowing chapter VIA deduction of Rs.10,09,800/-, since the appellant has filed the return u/s.139(4) of the Act and made the above claim. 3. The return for the above assessment year was filed on 14-11-2019 by claiming deduction u/s. SOP of the Act to an extent of Rs.10,09,800/- and both the CPC and first Appellate Authority are not justified in denying the above deduction. 4. The provision containing s....

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...., on the ground that the assessee is not entitled for deduction, because, it has not filed return of income for the relevant AY within the due date specified u/s.139(1) of the Act, to claim the deduction in light of amendment to provisions of Sec.80AC of the Act, as amended by the Finance Act, 2018 w.e.f. 01.04.2018. 4. Being aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 5. The Ld.AR for the assessee submitted that the Ld.CIT(A) is erred in sustaining the disallowance made by the ACIT/CPC towards deduction claimed u/s.80P(2) of the Act, without appreciating the fact that the assessee could not file the return within the due date specified u/s.139(1) of the Act, because, the Audit of the Society was cond....

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....uch delay cannot be attributed to the assessee, because, completion of Audit by the Department, is not in the hands of the assessee. We have gone through the reasons given by the assessee in light of provisions of Sec.80AC of the Act, and we find that the assessee is, otherwise, entitled for deduction u/s.80P(2) of the Act, in respect of profits derived from its business, because, it has satisfied all conditions prescribed therein. The only reason for the AO to reject the deduction claimed u/s.80P(2) of the Act, was that the assessee does not file its return on or before due date specified u/s.139(1) of the Act. Except this, the AO has not brought on record any other reasons to deny deduction claimed u/s.80P(2) of the Act. Therefore, from t....