TaxTMI 
TaxTMI 
2022 (11) TMI 128
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.... "the Act". 2. The assessee has taken the following grounds of appeal:- "1. The learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi erred is dismissing appeal of the Appellant, by confirming action of CPC Bengaluru, in making adjustment to returned income of the Appellant by not allowing deduction of Rs. 2,12,008/- claimed by the Appellant u/s 80P of the Act. 2. The learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi failed to appreciate that the Appellant had filed adjournment application in response to notice u/s 250 issued on 26- 11-2021, which was not rejected by the CIT(A). 3. The learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi erred in upholding....
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.... the solitary issue of disallowance of deduction u/s 80P. I have carefully considered the facts of the case, findings of the AO in the 143(1) order, grounds of appeal as well as the statement of facts submitted by the appellant. 5.2 It is observed that the AO while processing the return u/s 143(1) has disallowed the assessee's claim of deduction u/s 80P,since the return was filed after the due date as per sec. 139(1). The provisions of Section 8OAC prior to the amendment vide Finance Act 2018 w.e.f. 01.04.2018 provided that deduction only under sections 80-IA, 80- IAB, 80-IB, 80-IC, 80-ID and 80-IE, are not allowable if the return of income submitted by an assessee is after the due date of submission of return of income stipula....
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....has filed the return of income on 30/11/2020, which is beyond the normal due date of 31/08/2019 as per Section 139(1) and also beyond the extended time which was allowed of 30/09/2019 for the said relevant year. As per the amended provisions of sec. 80AC which are applicable for AYs 2018-19 and onwards, the appellant is clearly not eligible to claim exemption u/s 80P of the Act. Therefore, no infirmity is found in the action of the AO of disallowing the appellant's claim of deduction u/s 80P while processing the return u/s 143(1). Accordingly, all the grounds of appeal raised are dismissed. 6.0 In the result, the appeal is treated as dismissed. Order passed under section 250 read with section 251 of the Act." 5. The assessee....
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....pon the observations made by Ld. CIT(A) in the appellate order. 7. We have heard the rival contentions and perused the material on record. In the instant facts, admittedly the assessee did not file return of income within the time permissible under section 139(1) of the Act. However, the assessee filed its return of income belatedly on 28-11-2020 and claimed deduction of Rs. 2,12,008/- under section 80P of the Act. The issue for consideration before us is that whether once the return of income is filed beyond the prescribed date under section 139(1) of the Act, can the deduction under section 80P of the Act be denied to the assessee, by way of adjustment under section 143(1) of the Act. On going through the statutory provisions, we obser....
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....r (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction 7.1 A joint reading of the above provisions makes it evident that the claim of deduction under section 80P of the Act cannot be allowed the assessee, if the assessee does not file its return of income within the due date stipulated under section 139(1) of the Act w.e.f. assessment year 2018-19 onwards. However, we also note that amendment has been introduced in section 143(1)(a)(v) of the Act to provide that the claim of deduction under section 80P of the Act can be denied to the assessee, in case the assessee does not file its return of income within the ti....
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.... that the counsel for the assessee has filed copies of orders passed by Commissioner (Appeals), NFAC in many other cases of cooperative societies having similar issues, in which it has been held that section 143(1)(a)(ii) of the Act does not deal with disallowance of deduction for deed filing of return of income and also the said adjustment is not permissible under section 143(1)(a)(v) of the Act. 7.3 We note that in the case of Chirakkal Service Co-Operative Bank Ltd. Kannur v. CIT 2016] 68 taxmann.com 298 (Kerala), the Kerala High Court held that a return filed by assessee beyond period stipulated under section 139(1) or 139(4) or under section 142(1) or section 148 can also be accepted and acted upon for entertaining claim raised unde....