2023 (7) TMI 849

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....e Assessment Year (A.Y.) 2019-20, arising out of the order passed u/s 143(1) of the Income Tax Act, 1961 (in short 'Act') dated 24.12.2020. 2. Brief facts of the case are that the assessee, a society registered under the Co-operative Society Act had filed it's return of income on 17.11.2020, declaring a total income of Rs. Nil for the A.Y. 2019-20, after claiming deduction amounting to Rs. 3,94,896/- under Chapter VIA of the Act. The Centralized Processing Centre (CPC) while processing the return for the A.Y. 2019-20, assessed the income of the assessee at Rs. 3,94,896/- by disallowing the same on the ground that the deduction is claimed u/s 80P, however, the return of income for the year under consideration was not filed within the due ....

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....eturn filed u/s 139(1) of the IT Act. 4. The Ld.CIT(A), at the first instance, failed to understand that prior to the amendment made by Finance Act, 2021 w.e.f. 01.04.2021, there was no provision incorporated section 143(1) of the IT Act to resort adjustment on the claim of deduction u/s 80P of the IT Act. Therefore, the impugned order passed by CPC Bangalore u/s 143(1), denying the claim of deduction u/s 80P, is against the provisions of law. 5. The Ld.CIT(A) ought to have understood that assessee was prevented by reasonable cause in filing the Return of Income within the due date prescribed u/s 139(1), and therefore, the action of CIT(A) in confirming the denial of claim u/s 80P of the IT Act is not judicious. 6....

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.... pleaded that the return filed u/s 139(4) within due date is valid and the deduction claimed u/s 80P cannot be denied. (i) Hon'ble High Court of Telangana in the case of Commissioner of Income-Tax Vs. GVK Industries Ltd., [2023] 147 taxmann.com 281 (Telangana) (ii) Hon'ble ITAT Rajkot Bench in the case of Medi Seva Sahakari Mandali Ltd. Vs. ADIT(CPC) [2023] 146 Taxmann.com 3 (Rajkot - Trib) (iii) Hon'ble ITAT Mumbai in the case of New Ideal Cooperative Housing Society Ltd. Vs. ITO Ward 19(2)(4) vide I.T.A.No.2681/Mum/2019 (iv) Hon'ble ITAT Chandigarh Bench "SMC" in the case of Lanjani Co-operative Agri Service Society Ltd.(CPC) Vs. Deputy Commissioner of Income Tax, [2023] 146 taxmann.com 469 (Chandigarh-....

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....ciety Ltd. Vs. Deputy Commissioner of Income Tax. [2022] 138 taxmann.com 571 (Madras) (07.04.2021). Similar issue was adjudicated by the Tribunal in the case of Unagatla Large Sized Co-operative Credit Society Ltd., Chagallu Mandal vide I.T.A.No. 255/Viz/2021, dated 08.03.2023 against the assessee, relying on the decision of the Hon'ble High Court of Madras in the case of AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd.(supra). For the sake of clarity and convenience, I extract relevant part of the order of the Hon'ble High Court of Madras as follows : "8. The provisions of section 80AC(ii) make it clear that any deduction that is claimed under Part C of Chapter VIA would be admissible only if the return ....