TaxTMI 
TaxTMI 
2023 (6) TMI 264
X X X X Extracts X X X X
X X X X Extracts X X X X
....ounting to Rs. 4,61,664/-. The CPC, Bangalore while processing the said return, disallowed the entire claim of deduction of Rs. 4,61,664/- claimed under Section 80P of the Act in the intimation under Section 143(1) of the Act on 16.04.2020 on the ground that the assessee's claim is not admissible as the return of income was filed belatedly. 4. Being aggrieved by the intimation under Section 143(1) of the Act dated 16.04.2020, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessee filed return of income belatedly but it was not under Section 143(3) the intimation is, but the intimation was under Section 143(1)(a) of the Act wherein the adjustment in respect of Clause (b) of the said Section came w.e.f. 01.04.2021 and, therefore, deduction claimed under Section 80P or the Act should have been granted and not merely be rejected on the ground of late filing of the return. The Ld. AR further submitted that the Assessing Officer had no power under Section 143(1)(a)/(b) of the Act for A.Y. 2019-20 as the Section was introduced/effective from 01.04.2021. The Ld. AR relied upon the decision of Hon'ble Mad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ection 80P [Para No. 6 of CIT(A) Order]. However, this does not change the correct reason of non-granting of deduction under Section 80P from the grounds of appeal and also from the finding of the CIT(A). 08. From 1st April, 2018, Section 80AC(ii) provides that the deduction under Chapter- C of Chapter- VI-A is not eligible for deduction if the return of income is not filed within the due date prescribed under Section 139(1). In the present case, admittedly the return was filed late. 09. Section 143(1)(a) allows Department to make an adjustment in relation to certain items in the return of income filed. Sub-clause (v) allows the Officer to disallow the claim under Chapter- VI-A, if the return is filed beyond the prescribed time under Section 139(1). 10. Section 143(1)(a)(v) for A.Y. 2019-2020 reads as under: "Disallowance of deduction claimed under Section 10AA, 80IA, 80IAB, 80ID, 80IC, 80ID or section 80IE if the return is furnished beyond the due date specified under sub-section (1) of section 139." This sub-clause was amended from A.Y. 2021-2022 by Finance Act, 2021 which reads as under: "The disallowance of deductio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....due date. The Ld. DR further submitted that Section 80AC of the Act was introduced/effective from A.Y. 2018-19 and, therefore, the assessee cannot take the plea that since the scope of Section 143(1)(a)(ii) w.e.f. 01.04.2021. The Assessing Officer does not have power. The Ld. DR filed written submission which is reproduced as under :- "2. In connection with the above, it is to submit that the undersigned was directed to attend SMC bench, ITAT, Ahmedabad on 08.05.2023 as Sr. DR. During the hearing the Hon'ble SMC bench directed the undersigned to prepare a note in case of The Parabada Co. Op. Milk Producers Society Ltd. (ITA No. 128/Ahd/2023) on disallowance of deduction u/s. 80P r.w.s. 80AC. The note on the subject is as follows: I. In the instant case, the assessee filed its return of income after the due date and claimed deduction u/s 80P which was disallowed by CPC, Bengluru while passing the intimation u/s 143(1). II. Assessee filed appeal before NFAC, Delhi against the order of CPC, Bengaluru claiming deductions u/s 80P(2). The assessee contented as below: a) The ACIT CPC has not granted deduction of Rs. 4,61,664 under Section 80P on the gro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e in the case of a belated return. There is no dispute on this position. The date of filing of a return of income would apparent on the face of return and upon a perusal thereof, it would be clear as to whether the return is a valid return, having been filed within the statutory time limit, or a belated one. This is mechanical exercise and one that can be carried out by the CPC, very much within the scope of section 143(1)(a)(ii) of the Act. c) Here I may refer to the decision of the Hon'ble High Court of Madras in the case of AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. Vs. DCIT [2022] 138 taxmann.com 571 (Madras) AY 2018-19 wherein the Hon'ble Court specially held that no claim under any provisions of Part C of Chapter VIA would be admissible in case of a belated return. In the present case, the return filed for the AY 2019-20 is belated return, therefore, as per ratio laid down by the Hon'ble Madras High Court, the CPC is justified in denying the assessee's claim of deduction u/s. 80OP of the Act. 4. Before CIT(A), no other argument was put forth by Assessee. The adjustment made by CPC, Bengaluru has been rightly u....