TaxTMI 
TaxTMI 
2023 (1) TMI 858
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.... the case, the ld. CIT (A) erred in upholding the order of the Assessing officer. 2. On the Facts and circumstances of the case the Ld. CIT(A) erred in upholding the deduction claimed under section 80P of the Act as computed by the AO (Rs. 29,39,414/- as against Rs. 36,44,859/-claimed by the Appellant. 3. The Ld. CIT (A) as well as the authorities below erred in denying the benefit claimed u/s 80P of the Act to the extent of Rs. 705,445/- being interest income earned (pl. see pg 2 of AO order). 4. For these and other grounds that may be urged at the time of hearing of the appeal the appellant prays that the appeal may be allowed. 2. The brief facts of the case are that the assessee filed return of income on 09.11.2018 showing Nil inc....
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.... viz., 08.11.2021, 03.12.2021, 23.12.2021, 18.01.2022, 12.04.2022, 07.04.2022, 18.05.2022 and 26.05.2022. But no response was submitted by the assessee for any of the notices. Therefore, the CIT(A) decided the issue on the basis of the materials available on record before him. The CIT(A) noticed that while processing the return of income under section 143(1) of the Act, the assessee filed return of income on 09.11.2018 whereas the extended due date was 31.10.2018. Accordingly, as per the amended provision of section 80AC of the Act, the CPC did not allow the deduction claimed under section 80P of the Act. whereas the AO, during the course of scrutiny proceedings under section 143(3) of the Act allowed deduction as per section 80P(2)(a)(i) o....
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....specified u/s 139(1). It is undisputed that the appellant filed the original ITR for the AY 2018- 19 on 09.11.2018 beyond the due date. Therefore. you are hereby given an opportunity to explain why the income should not be enhanced to the extent of Rs 29,39,414/- on or before 20.04.2022. 5.5 The appellant did not bother to respond to even the enhancement notice. In addition to regular notices of hearing, the following reminders to the enhancement notice were also issued. Enhancement notice 12.04.2022 [email protected]&[email protected] Delivered No response submitted Reminder to Enhancement notice 07.05.2022 [email protected]&[email protected] Delivered submitted Reminder to Enhancement notice 18.05.2022 Heccs.yl....
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....r and unambiguous. As per the provisions of section 80AC, which is effective from AY 2018-19, to avail the benefits of deduction u/s 80P, the ITR shall be filed on or before the due date specified u/s 139(1). In the instant case, the appellant filed the original ITR for the AY 2018-19 on 09.11.2018 beyond the due date (extended due date being 31 October 2018). The AO while passing the order u/s 143(3) ignored the fact that the appellant filed the return beyond the due date specified u/s 139(1) and allowed the deduction u/s 80P of Rs 29,39,414/- as against the claim of Rs.36,44,860/-. Therefore the enhancement notice was issued. The appellant not responded to the enhancement notice and the subsequent reminders issued to the appellant till th....
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....owance of deduction claimed only u/s 10AA, 80-IA. 80- IAB, 80-IB, 80-IC, 80-ID & 80-IE for AY 2018-19, if the return is filed beyond the due date prescribed u/s 139(1). The disallowance of deduction claimed u/s 80P of the Act is not included in the said sub-clause relevant to AY 2018-19. Therefore, I am of theview that the AO was not empowered to make an adjustment of disallowance u/s 80P while processing the ITR u/s 143(1) of the Act, even if the return of income was filed beyond due date for AY 2018-19. However, the AO is empowered to disallow deduction u/s 80P during scrutiny proceedings u/s 143(3) rws 80AC rws 80P for AY 2018-19." 4. Aggrieved from the above order, the assessee filed appeal before the Tribunal. At the outset of hearing....
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....relied on the judgment of Co-ordinate Bench of the Bangalore ITAT in the case of M/s. Syndicate Bank Staff Co-operative Society Ltd., Vs. DCIT, CPC in ITA No.1062/Bang/2022.He further submitted that the CIT (A) has rightly enhanced the income since the issue relate to the subject matter of assessment, it is within the power of CIT(A) u/s 251(1)(a) read with explanation, therefore the arguments advanced by the learned AR is not sustainable. 7. Considering the rival submissions, I noticed that the assessee filed return of income on 09.11.2018 and extended due date was 31.10.2018, after claiming deduction on the entire income earned by the assessee. The return was processed under section 143(1) of the Act on 01.07.2019 and the entire deductio....