TaxTMI 
TaxTMI 
2023 (2) TMI 462
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....olding that claim made by the Appellant was "Incorrect claim" as per Sec.143(1) of the Act. 2. The Learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi erred in confirming action of CPC Bengaluru by disallowing claim of deduction of Rs.18,20,276./- by failing to appreciate that provisions of Sec.143(1)(a)(v) do not provide for denial of deduction u/s 80P of the Act when the return of income is not filed within time allowed u/s.139(1) of the Act but u/.s.139(4). 3. The Learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi erred in upholding action of the CPC Bengaluru in making adjustment to the returned income of the Appellant by way of an intimation u/s.143(1) and in denying the benefit of Sec.80P of the Act of Rs.18,20,280/- to the Appellant by failing to appreciate that this was not a prima facie adjustment permissible u/s.143(1)(a) of the Act. 4. The Learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi erred in not adjudicating ground of disallowance of claim of deduction of Rs.18,20,280/- u/s.80P of the Act on merits." 3. Firstly we are taking up ITA No.186/RJT/2022 as the issue contested in all these appeals are iden....
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....annot be the criteria. The Ld. AR further submitted that the debatable issue in respect of pima facie adjustment cannot be taken into account by disallowing the claim under Section 80P of the Act which is available to the assessee. The Ld. AR relied upon the decision of Hon'ble Madras High Court in the case of Veerappampalayam Primary Agricultural Co-operative Credit society Limited vs. DCIT and Others (2021) 110 CCH 0219, which was referred by the CIT(A) will not be applicable in the present case as the Hon'ble Kerala High Court in the case of Chirakkal Service Co-operative Bank Limited vs. CIT (2016) 95 CCH 0197 specifically stated that in cases where returns have been filed, the question of exemptions or deductions referable to Section 80P would definitely have to be considered and granted if eligible. The Hon'ble Kerala High Court most specifically observed that the Tribunal was not justified in denying exemption under Section 80P of the Act on the mere ground of belated filing of return by the assessee concerned. The Ld. AR also relied upon the decision of Tribunal in case of Lanjani Co-operative Agri Service Society Limited & Another vs. DCIT (2022) 65 CCH 0560 (Chandigarh Tr....
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....laim deduction u/s.80P r.w.s. 80AC, the only remedy to the solution lies in the machinery provisions of the Act rather than seeking legal remedy. Such provisions are found in section 119(2)(b) which enables an assessee to approach the Board for seeking relief in such matters. The provisions of section 119(2)(b) are reproduced below: Section 119. "Instructions to subordinate authorities. (1) The Board may from time to time, ...... (2) Without prejudice to the generality of the foregoing power,- (a) the Board may,....... in the prescribed manner for general information; (b) the Board may, if it considers it desirable or expedient so to do for avoiding genuine hardship in any case or class of cases, by general or special order, authorize (any income-tax authority, not being a [***] Commissioner (Appeals)] to admit an application or claim for any exemption, deduction, refund or any other relief under this Act after the expiry of the period specified by or under this Act for making such application or claim and deal with the some on merits In accordance with law. Perusal of the above provision reveals that appellate authorities have not been given powers in such cases, it ....
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....iety Ltd. Vs CIT(A) NaFAC New Delhi, the ITAT Mumbai Bench in ITA No.944/MUM/2022 (AY 2018-19) (copy encl. date of order 31.10.2022) has also upheld the decision of the CIT(A) in disallowing the assessee's claim of deduction under 80P(2)(d) of the IT Act, 1961 on the ground that the assessee had not filed the return of Income within due date as specified in section 139(1) of the Act (emphasis applied). [para 6]. The Hon'ble Tribunal has held that due to the amended provisions brought about by Finance Act, 2018 to section 80AC, to include all deductions admissible under Chapter VIA under the heading "C- deduction In respect of certain incomes", the deduction would not be applicable from 01.04.2018 i.e. AY 2018-19. 5. Thus, the issue is no longer debatable as the matter has been decided against the assessee by Hon'ble Courts. As per the amended provision of section 80AC, benefit of deduction was not available to an assessee w.e.f. 01.04.2018 if the return of income was filed beyond the due date as provided in Section 139(1) of the Act. As discussed earlier the remedy to the issue lies in section 119(2)(b). The current provisions of section 143(1)(a) allows an Assessing ....
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....r 2019-20 dated 31.10.2022 has not considered the submissions made by the Sr. DR while allowing the appeals of the assessee for which a MA is being filed shortly before the Hon'ble Tribunal. Further, while referring to the case of Chirakkal Service Co-operative Bank Ltd. Vs CIT the Hon'ble ITAT lost track of the fact that the Hon'ble High Court had not considered the decisions of Hon'ble Supreme Court mentioned in para 5.1 in its order and therefore the principle of 'ratio decidendi' will not apply in these present cases under the consideration of the Honourable Tribunal. 7. In the hearing in the above cases on 19.01.2023, the Ld. AR has made written submission in these cases relying upon the decision of the Hon'ble ITAT, Chandigarh in the case of Lanjani Co-operative Agri Service Society Ltd. and others Vs DCIT. The Hon'ble ITAT has allowed the appeal relying on the provision of section 143(1)(a)(v) which was amended by the Finance Act, 2021 which gave jurisdiction to the AO to make prima facie adjustments U/s.143(1)(a) if the return was filed beyond the due date, w.e.f. 01.04.2021 only. The Ld. AR has highlighted the fact that the Hon'ble Tribuna....
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....eunder. Therefore, in cases where no returns have been filed for a particular assessment year, no deductions shall be allowed. This embargo in section 80A(5) would apply, though section SOP is not included in section 80AC. This is so because, the inhibition against allowing deduction is worded in quite similar terms in sections 80A(5) and 80AC, of which section 80A (5) is a provision inserted through the Finance Act 33/2009 with effect from 1.4.2013 after the insertion of section 80AC as per the Finance Act of 2006 with effect from 1.4.2006. This clearly evidences the legislative intendiment that the inhibition contained in subsection 5 of section 80A would operate by itself. In cases where returns have been filed, the question of exemptions or deductions referable to section SOP would definitely have to be considered and granted if eligible. 20. Here, questions would arise as to whether belated returns filed beyond the period stipulated under section 139(1) or section 139(4) as well as following sections 142(1) and 148 proceedings could be considered for exemption. If those returns are eligible to be accepted in terms of law, going by the provisions of the statute and the govern....