TaxTMI 
TaxTMI 
2023 (9) TMI 1220
X X X X Extracts X X X X
X X X X Extracts X X X X
....AY) 2019-20. Section 80AC of the Act, brought on the statute by Finance Act, 2006, w.e.f. 01.04.2006, provides that deduction under the specified provisions of Chapter VI-A of the Act would be allowed only where a return claiming the said deduction/s is filed within the time specified u/s. 139(1). Its scope stands extended by Finance Act, 2018, w.e.f. 01.04.2018, to include all other deductions under Chapter VI-A (Part C), and which contains s. 80-P as well. Sec. 143(1)(a), as applicable for the current year, i.e., consequent to its amendment by FA, 2018, in its relevant part, reads as under: Assessment. 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s the decisions by the Apex Court in CC(I) v. Dilip Kumar & Co. [2018] 9 SCC 1 (SC)(FB) and Pr. CIT v. Wipro Ltd. [2022] 446 ITR 1 (SC). While the orders by the Tribunal are on the point, that by the Hon'ble Courts are supportive in nature. 5. We have heard the parties, and perused the material on record. 5.1 Before proceeding to discuss the issue at hand, argued at length before us, we enlist the following principles discerned on reading the decisions relied upon by either side. This is as it is these principles, constituting their ratio decidendi, that constitute the judicial precedence, and toward which aspect, though well-settled, we may refer to the decisions in Mavilayi Service Co-op. Bank Ltd. v. CIT [2021] 431 ITR 1 (SC) and Shri Bhagavati Textiles Ltd v. CIT [2000] 244 ITR 496 (Ker): (i) Taxing statutes, more so exemption provisions, are to strictly construed; (ii) section 80AC of the Act is mandatory in character; (iii) the charging and computation provisions form an integral part, so that in the absence of the latter, the former would fail; (iv) section 143(1)(a)(v) of the Act, prior to its amendment by Finance Act, 2021, did....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ile sections 4 & 5 are the charging provisions. Being a procedural provision, s. 143(1)(a)(v) would apply to any return processed on or after 01/4/2021, i.e., the date it comes into effect, irrespective of the year to which it pertains. That is, returns for even earlier years would be liable to be processed under the amended sec. 143(1)(a)(v) w.e.f. 01/4/2021.Per contra, processing of returns prior to 01/4/2021 could not be under the amended s. 143(1)(a)(v). 5.4 Continuing further, the question of a retrospective operation to a procedural provision does not arise inasmuch a procedure could apply w.e.f. a particular date and, besides, there being no vested right in procedure, it would apply irrespective of the year to which the return, to which it is applied, pertains. That is, is retroactive. Finance Act, 2021, received the assent of the Hon'ble President of India on 28.3.2021. As such, even assuming it to have a 'retroactive' operation, i.e., for assessment year commencing 01.4.2018 and subsequent years, on which aspect - it being a procedural provision, there could be no doubt, being only to give effect to the statutory mandate of section 80AC, even as explained in the Fin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Act is under sub-clause (ii) thereof, which is to be read along with Explanation below section 143(1) of the Act. We consider this aspect for two interrelated reasons: (i) the same, though stands adverted to the Tribunal per it's decision above, is only cursorily so, without dwelling into any interpretative exercise, and which has led us to state of it being found as prima facie inapplicable; (ii) Ms. Devi, the ld. Sr. D.R., was emphatic that it is this provision which has been invoked by the Revenue, and not section 143(1)(a)(v) of the Act, as being stated by the appellants. We find merit in the assertion by Ms. Devi, as the processing is by the Central Processing Centre (CPC), i.e., machine made, which runs on a software. The scope of section 143(1)(a)(v) could not possibly have been extended prior to 28.3.2021, only whereby it became law. In fact, disallowance in ITA Nos. 995/Coch/2022 and 47/Coch/2023 was admitted as u/s. 143(1)(a)(ii), and only for 95/Coch/2023 it was stated by Shri Suresh, the ld. counsel for the assessee, as made under subclause (v), even as there is nothing on record to exhibit so. This we may though add would be of no conseque....