TaxTMI 
TaxTMI 
2024 (9) TMI 576
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....iate Appellant that the appellant had filed rectification application with Income Department ii The Learned Addl/Jt. Commissioner of Income Tax Surat 2 has failed to give opportunity to be heard 2. The Appellant prays that one more opportunity may be granted to them in the interest of natural justice." 3. The assessee has also raised additional grounds of appeal which is reproduced below: "1 On facts and circumstances of the case and in law, the learned CIT(A) erred in not dealing with the Grounds of Appeal raised in appeal. 2 On facts and circumstances of the case and in law, the order of CPC is bad in law since the adjustment envisaged in the intimation u/s. 143(1) was beyond the jurisdiction of the AO. The CPC had no jurisdiction to make any adjustments in respect of deduction claim u/s. 80P(2)(d) since the said authority was given only with effect from A.Y. 2021-22 by amending the Act. 3 On facts and circumstances of the case and in law, the learned CIT(A) erred in not allowing disallowing u/s. 80P(2)(d) of the Act." 4. Brief facts of the case are that the assessee had filed its return of income on 01.10.2012 declaring nil income. The case was processed u/s 143(1)....
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....not allowable. It may be stated that a co-operative Society registered under the provisions of the Maharashtra Co-op Society Act 1960 it is required to get its accounts Audited, and hence the due date of filing of Return is not 31st July every year but as required for the assessee who are under audit. The society has filed return in time in above two years. b) The Society had claimed deduction of being interest from Co-op Bank which is deductible under Section 80P(2)(d). c) On receipt of Intimation for A.Y.2012-13 & A.Y.2014-15, Rectification Petitions u/s. 154 of the Act were filed as per the advice taken by the then Secretary. The said Petitions are still pending before the CPC/AO. d) The society waited for Rectification Petition being disposed off however there was no action from the department. On advice of the senior counsel, as an abended caution the society filed an appeal before the learned CIT(A). Therefore, there was no delay on the part of the assessee to file an appeal. e) The society filed the appeal before learned CIT on 30/11/2023 f) The appeal was delayed on account of following reasons: i. The Rectification Petitions u/s. 154 were filed before CPC and t....
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....stment made by the CPC u/s 143(1) by disallowing the claim of deduction u/s 80P(2)(d) in respect of interest received from co-operative banks is beyond the scope of adjustment u/s 143(1) of the Act. In this regard, the relevant portion of the order of the co-ordinate bench (supra), relied upon by the assessee, is reproduced below: "7. We heard both the parties and also peruse the relevant material based on record. First of all the assessee has explained the reason for delat in filing of the first appeal before CIT(A) that earlier CA of the assessee had filed rectification application u/ 154 before the AO/CPC, then assessee was under bonafide belief that the adjustment would get rectified and even CA also did not advice the society to file an appeal when application was disposed of for certain period. It is later on when demand notice was issued then assessee was advised to file an appeal. Thus, looking to the fact that assessee is cooperative housing society and it was under a bonafide belief that it has filed a rectification which was not disposed of till date, therefore delay in filing of first appeal cannot be held to latches on part of the assessee. Thus, delay in filing appe....
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..... A rectification application u/s 154 was filed on 31.03.2015. The rectification application is still pending, as per the screenshot dated 25.07.2024. An appeal before Addl. CIT(A) was filed on 30.11.2023 with a delay of 3153 days. Since, the fact for this year are exactly similar to AY 2012-13, it is held that CPC had no jurisdiction to make any adjustment in respect of deduction claimed u/s 80P(2)(d) of the Act. 10. Respectfully following the order of the co-ordinate bench of Vishva Villa Co-op. Housing Society Ltd. v/s ITO, Ward 19(3)(1) [supra], the appeal of the assessee is allowed. The AO is directed to allow the claim of deduction u/s 80P(2)(d) of the Act. ITA No. 2602/MUM/2024 (A.Y. 2015-16) 11. For AY 2015-16 similar grounds have been raised by the assessee as earlier years. The facts are also similar except that the return has been filed on 24.12.2015 as against the extended due date of 31.10.2015. The intimation u/s 143(1) disallowing the claim of deduction u/s 80P(2)(d) of Rs. 1,62,710/- was issued on 03.03.2016. A rectification application u/s 154 of the Act was filed by the assessee on 11.03.2016, which is still pending. 12. Subsequently, an appeal was filed befor....
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.... be heard. 2. The Appellant prays that one more opportunity may be granted to them in the interest of natural justice." 16. Brief facts are that the return declaring income Rs. 4,460/- was filed on 07.12.2017 which was processed by the CPC, Bengaluru u/s 143(1) of the Act on 09.08.2018. An appeal was filed before the Ld. Addl. CIT(A) on 30.11.2023 i.e. after a delay of 1853 days. The Ld. Addl. CIT(A) vide order dated 12.03.2024 has dismissed the appeal of the assessee, after rejecting the application for condonation of delay and also on merits after observing that the return has been filed after the due date and as such the benefit of section 80P(2)(d) cannot be allowed. 17. We have heard the rival submissions. With regard to the delay, it has been submitted in the affidavit filed on behalf of society that there was no competent accountant to look after the income tax matters. Out of the total delay of 1853 days, approximately 1200 days delay is covered by the Hon'ble Apex Court's decision regarding exclusion of period from 15.03.2021 to 28.02.2022 and 01.03.2022 to 31.05.2022 on account of Covid pandemic. Thereafter, due to the fact that it is a small society with no regular s....