TaxTMI 
TaxTMI 
2022 (10) TMI 1236
X X X X Extracts X X X X
X X X X Extracts X X X X
....Appeal Centre, Delhi Failed to appreciate that the Appellant had filed adjournment application in response to notice u/s 250 issued on 26- 11-2021, which was not rejected by the CIT(A). 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. 4,11,630/- to the Appellant by Failing to appreciate that this was not permissible u/s 143(l)(a) of the Act. 4. The learned Commissioner (Appeals), National Faceless Appeal Centre, Delhi, on merits, erred in disallowing deduction of Rs. 4,11,630/- claimed by the Appellant under various sub-sections of Sec. 80P of the Act as per return of income filed for the year. 4. The appellant craves leave to add, amend, alter and withdraw appeal anytime up to the hearing of this appeal. Total tax effect 1,27,194/-" 3. The brief facts of the case are that the assessee is a co-operative society, who filed return of income on 30-11-2020 declaring total income of Rs. Nil and claimed deduction of Rs. 4,11....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e allowed even if the return of income is submitted after the due date stipulated in section 139(1) From AYs 2018-19 onwards Deduction cannot be allowed under all the sections falling under Chapter VIA including 80P if the return of income is submitted after the due date stipulated in section 139(1). 5.3 In the instant case, the assessment year under consideration is AY 2019-2020 and appellant has filed the return of income on 30/11/2020, which is beyond the normal due date of 31.08.2019 as per Section 139(1) and also beyond the extended time which was allowed of 30.09.2019 for the said relevant year. Therefore, as per the amended provisions of sec. 80AC which are applicable for AYs 2018- 19 and onwards, the appellant is not eligible to claim exemption u/s 80P of the Act. Therefore, no infirmity is found in the action of the AO of disallowing the appellant's claim of deduction u/s 80P while processing the return u/s 143(1). Accordingly, all the grounds of appeal raised are dismissed. 6.0 In the result, the appeal is treated as dismissed. Order passed under section 250 read with section 251 of the Act." 5. The assessee is in appeal....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the prescribed date under section 139(1) of the Act, can the deduction under section 80P of the Act be denied to the assessee, by way of adjustment under section 143(1) of the Act. On going through the statutory provisions, we observe that 80AC of the Act provides that no such deduction under section 80P of the Act shall be allowed to an assessee unless he furnishes a return of his income on or before the due date specified under section 139(1) w.e.f. assessment year 2018-19 onwards. However, section 143(1)(a)(v) of the Act provides that disallowance of deduction claimed under any of the provisions of Chapter VI-A under the heading "C.- Deductions in respect of certain incomes" (which includes deduction under section 80P of the Act), can be made if the return is furnished beyond the due date specified under sub-section (1) of section 139. This amendment has been introduced w.e.f. 1-4-2021. Accordingly, the above amendment would not apply to the impugned assessment year. Further, section 143(1)(ii) of the Act permits adjustment in case of an incorrect claim, if such incorrect claim is apparent from any information in the return. However, Explanation to the aforesaid section specifi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the said section specifically provides for cases/instances when the claim made by the assessee could be said to be "incorrect". Therefore, in our considered view, the case of the assessee would also not fall within the purview of prima facie adjustment under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return). We also observe that the counsel for the assessee has filed copies of orders passed by Commissioner (Appeals), NFAC in many other cases of cooperative societies having similar issues, in which it has been held that section 143(1)(a)(ii) of the Act does not deal with disallowance of deduction for deed filing of return of income and also the said adjustment is not permissible under section 143(1)(a)(v) of the Act. 7.3 We note that in the case of Chirakkal Service Co-Operative Bank Ltd. Kannur v. CIT 2016] 68 taxmann.com 298 (Kerala), the Kerala High Court held that a return filed by assessee beyond period stipulated under section 139(1) or 139(4) or under section 142(1) or section 148 can also be accepted and acted upon for entertaining claim raised under section 80P provided further proceedings in relation to su....