TaxTMI 
TaxTMI 
2022 (8) TMI 121
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.... kindly be deleted. Though the appellant has taken single grounds of appeal viz., the ld. CIT(A)-3 has erred in confirming the disallowance of exemption available to the appellant under section 80P on the interest income amounting to Rs. 39,11,617/- received from providing credit facilities to its farmers member. Such income does not qualify for grant of deduction under section 80P of the Income Tax Act, 1961. Accordingly, he disallowed deduction under section 80P on interest income of Rs. 39,11,617/-. Appeal to the CIT(A)-3 did not bring any relief to the appellant. 3. The Ld. CIT (A) has erred in charging interest u/s. 234 in absence of the specific instruction under the Assessment order, my kindly be deleted 4. The Ld. CIT (A) erred in initiating penalty proceeding u/s. 254 rws 271 (1)( c) of the Act. my kindly be deleted 5. Your Honor's appellant craves leave to add, alter, amend, or withdraw any or more grounds of appeal on or before the hearing of appeal." ITA No. 473/Rjt/2017 For A.Y. 2013-14 "1. The Grounds mentioned hereunder are without prejudice to one another. 2. The ld. Commissioner of Income Tax (Appeals) -3 Rajkot has erred in law dismissing appeal....
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....e of the specific instruction under the Assessment order, my kindly be deleted 4. The Ld. CIT (A) erred in initiating penalty proceeding u/s. 254 rws 271(1)(c) of the Act. my kindly be deleted 5. Your Honor's appellant craves leave to add, alter, amend, or withdraw any or more grounds of appeal on or before the hearing of appeal." 3. Since the issues involved in all the years are identical, the appeals are being disposed of by a common order. Assessment year 2012-13 4. The brief facts of the case are that the assessee is a cooperative Society registered under the Gujarat Cooperative Societies Act. The main object of the assessee is to provide credit facilities to its members, accepting deposits from its members, sale of petrol, pesticides, fertilisers and providing other services. During the course of assessment proceedings, the AO noticed that in the original return of income filed by the assessee, it did not claim deduction under section 80P of the Act. It was on receipt of show cause notice issued by the assessing officer during the course of assessment proceedings, that the assessee filed revised computation claiming deduction under section 80P of the Act (during the....
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....ion of A.O. 5. The issue for consideration before us is that if the assessee has not claimed deduction under section 80P of the Act in the return of income, can it be permitted to claim the same during the course of assessment proceedings by way of filing a revised computation in response to notice issued by the assessing officer. At this stage, it would be useful to refer to the language of section 80A(5) of the Act, which reads as under: Deductions to be made in computing total income. 80A(5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder.] 5.1 A plain reading of section 80A(5) of the Act shows that the Statute is categorical in its language that in order to make claim for deduction under section 80P of the Act (forming part of Chapter-VI of the Act), the same has to be done in the return of income. The Gujarat High Court in the case of Rachna Infrastructure (P.) Ltd. [2022] 138 taxmann.com 416 (Gujarat) has held that where a....
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....ing Society Ltd. [2013] 40 taxmann.com 45 (Madras) has held that Fresh claims made by assessee relating to deduction under section 80P in response to notice under section 148 cannot be entertained. Again, the Mumbai ITAT in the case of Shree Datta Prasad Sahakari Patsanstha Ltd. [2022] 134 taxmann.com 324 (Mumbai - Trib.) has held that where assessee had not claimed deduction under section 80P(2)(a)(i) in its return of income, it could not be allowed such deduction in view of condition imposed under section 80A(5) even though it was otherwise eligible for such deduction. While passing the order, the Tribunal observed as under: 10. Though, it may be a fact that the assessee is otherwise eligible to claim deduction under section 80P(2)(a)(i) of the Act; however, the provision contained in section 80A(5) of the Act stands as a bar in allowing such deduction to the assessee. For the sake of completeness, we must observe, having carefully gone through the decisions cited by learned authorized representative of the assessee, we are of the view that in none of these decisions, the provision contained in section 80A(5) of the Act was taken note of. We are conscious of the fact that in ca....