AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 128
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....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 action of the CPC Bengaluru in making adjustment to the returned ....
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....se, 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 stipulated under section 139(1). These provisions of sec. 80AC prior to the amendment did not place such restriction of....
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....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 is in appeal before us against the aforesaid order passed by Ld. CIT(A) denying assessee's claim of exemption under section 80P of the Act, 6. Before us, ....
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....ts, 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 observe that 80AC of the Act provides that no such deduction under section 80P of the Act shall be allowed to an assessee unless he furnishes a return of his income ....
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....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 time prescribed under section 139(1) of the Act with effect from 01-04-2021 and does not apply to the impugned assessment year i.e. assessment year 2019-20 relevant to financial year 2018-19. ....
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....ld 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 under section 80P provided further proceedings in relation to such assessments are pending in statutory hierarchy of adjudication in terms of provisions of Act. In the case of ASR Engg. & Projects L....