TaxTMI 
TaxTMI 
2024 (3) TMI 612
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....iling of income tax return was unintentional and same may be condoned, 2. The provisions of Section 80A (5) of the Act are directory and not mandatory and therefore deduction under Section MOP cannot be denied by making the provision section 80A (5) of the Act We relied upon decision of ITAT Delhi in case of the Fibre fill Engineers Vs. CIT (2017) 177 TTJ 556 (Del.) wherein it was held that the provision of Sec 80A (5) are directory in nature and not mandatory. The said section cannot be evoked for denying the deduction u/s 80 Peven if ITR is nor filed. 3. Also, Section 80AC was amended wef 01.04.2018 prospectively. Before 31.03.2018 Section 80AC was applicable to any deduction is admissible under section 80-lA or section 80-1AB or section 80-IB or section 80-IC or section 80-ID or section 80-IE only. The Current case of Society is for FY 2016-17 so we are in presumption that 80P is allowable to us. 4. Also, In Current Decision of ITAT-SMC-C-BENCH BANGLORE (ITA No.614/Bang/2021) The Tribunal has allowed the deduction under section 80P even if return is not filed. The copy of Order is attached herewith. 5. The assessee has given notice details to their tax consultant but due....
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....ile disallowing Appeal has placed reliance on the Case "The Lanjani Co-Operative Agri... vs Dcit,Cpc/Ito-Ward" - In this case we observed that the Case is basically relates to AY 2019- 20 and the Appellate Tribunal disallowed the deduction u/s SOP on the basis of section 80AC of income Tax Act 1961. But our case relates to AY 2017-18. And Section 80AC was amended wef 01.04.2018 prospectively. 14. We also keep reliance on the following cases also where deduction under section 80P was allowed even if Return was not filed or filed in response to 148. a) Prathamika Krishi Pattina, Sahakara Sangha Ltd VS. ITO, ITA No.614/Bang/2021 b) M/S.Kodiyeri Service Co-Op Bank VS ITO ITA No 340/Coch/2012 c) Chirakkal service co-operative bank ltd. kannur vs. CIT 15. The assessee request to allow us to file the IT Return for the relevant AY and Claim 80P. Since the CIT(A) in his order that they are not having powers to allow us to file return. 16. The assessee request to add, delete or change grounds of appeal before 1TAT Appeal. 17. Likely to attend person ally/video call for further submission." Submission of ld.Authorised Representative(ld.AR) : 2. No one appeared on behalf of the....
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....he assessee had never claimed any deduction u/s80P of the Act. It is a fact that the Assessee had not filed Return of Income. Hence, the AO has rightly not allowed the deduction u/s 80P of the Act as the assessee had never claimed it before the AO during the assessment proceedings as it appears from the assessment order. 7.1 The Section 80A(5) is reproduced here under for ready reference: "Deductions to be made in computing total income. 80A. (1) In computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of this Chapter, the deductions specified in sections 80C to 80U. (2) The aggregate amount of the deductions under this Chapter shall not, in any case, exceed the gross total income of the assessee. (3) ........ (4) ............... (5) Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder." 7.2 Thus, as per Section 80A(5) assessee has to ma....
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....and has to be implemented by the Assessing Officer, CIT or the Appellate Tribunal as the case may be. There is no indication in Sub Section (5) of Section 80A of the Act as to why the restriction contained therein amounts to limiting the power of Assessing Officer but not that of Commissioner." Unquote. 7.5 Thus, the Hon'ble Jurisdictional High Court categorically held that as per Section 80A(5) of the Act, to claim deduction under section 80IB assessee had to make the claim of impugned deduction in the Return of Income. It means to claim Deduction under Chapter VIA under the heading "C.-Deductions in respect of certain incomes the Assessee has to claim the deduction in the Return of Income. 7.6 The Hon'ble High Court of Kerala in the case of Kuthuparamba Range Kalluchethu Vyavasaya Thozhilali Sahakarana Sangham Ltd Vs. CIT 257 Taxman 151 (Kerala) [20- 06-2018] held as under : Quote, "The question raised in one of the appeals [I.T.A.No.273 of 2015] is whether the Society-assessee can claim a deduction when no return was filed. . 5. ...... Section 80P comes under sub-chapter 'C' "Deduction in respect of certain incomes". A claim for such deduction has to be made in the....
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....r on or before the due date specified in section 139(1) of the IT Act. In other words, after 1-4-2018, even if the assessee makes his claim for deduction under section 80P in a return filed within time under sections 139(4), 142(1) or section 148, he will not be allowed the deduction, unless the return in question was filed within the due date prescribed under section 139(1). Thus, it is clear that the statutory scheme permits the allowance of a deduction under section 80P of the IT Act only if it is made in a return recognised as such under the IT Act, and after 1-4-2018, only if that return is one filed within the time prescribed under section 139(1) of the Act. As the return in these cases, for the assessment years 2009-10 and 2010-11, were admittedly filed after the dates prescribed under sections 139(1) and 139(4) or in the notices issued under section 142(1) and section 148, the returns were indeed non-est and could not have been acted upon by the Assessing Officer even though they were filed before the completion of the assessment. 12. There is yet another aspect of the matter. The requirement of making the claim for deduction in a return of income filed by the assessee ca....