TaxTMI 
TaxTMI 
2024 (12) TMI 1160
X X X X Extracts X X X X
X X X X Extracts X X X X
....r, no disallowance should be made. (3) The Ld. CIT (A), NFAC failed to appreciate that during A.Y.-2019-20 in the absence of the enabling provisions being clause(v) of Section 143(1)(a) of I. T. Act, the Ld. A. O. CPC lacked jurisdiction to make disallowance of claim for deduction u/s 80P in the Order u/s 143(1) dated 16.07.2020. (4) The Ld. C.L.T. (A), NFAC, failed to appreciate that the case law of Hon'ble Madras High Court in the case of Veerapampalayam Primary Agricultural Co-operative Credit Society Ltd. relied upon is distinguishable from the facts of the Assessee's case, as the amendment carried out in section 143(1)(a)(v) by the Finance Act, 2021 was neither argued nor referred for consideration of the Hon'ble Court. (5) That the present disallowance is highly excessive, contrary to the facts, law and principle of natural justice and without providing sufficient time and opportunity to have its say on the reasons relied upon by him." 2. In this case, the assessee filed return of income on 01.11.2019, declaring total income of Rs. Nil. In the return of income, the assessee claimed deduction amounting to Rs. 1,63,83,730/- under section 80P of the Income Tax Act, 1961 (....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gement of A.Y. 2019-20 4- Copy of Memorandum explaining the Provisions of Finance Bill. 3. At the time of hearing before us, the Assessee was represented by Shri Shubham Rastogi, Authorized Representative ("AR") and Revenue was represented by Shri Sunil Kumar Rajwanshi, Sr. Departmental Representative ("DR"). The Ld. AR for the Assessee drew our attention to Section 143(1)(a) of the Act and he submitted that enabling provision for disallowing claims under Chapter VIA of the Act, which includes claim under Section 80P of the Act; was legislated w.e.f. 01.04.2021. He also contended that the present appeal pertains to assessment year 2019-20, and therefore, the aforesaid amendment which is effective from 01.04.2021 does not have any application for the present case. He further submitted that, therefore, Section 80AC of the Act could not have been invoked in the present case. The Ld. AR also brought the written submissions and case laws forming part of the paper book to our attention in support of his contentions. He also drew our particulars attention to the order of ITAT Delhi Bench in the case of Sahakari Ganna Vikas Samiti Vs. ITO-2(5) order dated19.07.2023 in ITA. No.2090/Del/2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under Section 80P of the Act in response of belated return is in issue. In the instant case, the return was filed belatedly under Section 139(4) of the Act. While drawing the intimation under Section 143(1) of the Act, the CPC, Bengaluru has denied the claim of deduction under Section 80P of the Act owing to ROI filed after due date. The assessee sought rectification thereof under Section 154 of the Act which was reported. The CIT(A) in the first appeal also refused to entertain rectification of mistake towards aforesaid deduction claimed under Section 80P of the Act. Hence, in this appeal. 6. We find that the issue is no longer res integra. The identical issue has come up before the Co-ordinate Bench of Tribunal in the case of Kishorepur Paschimanchal SKUS Limited (supra) wherein after taking note of provisions of Section 80AC of the Act and provision of Section 143(1) and subsequent amendment thereto, it was concluded that such adjustments under Chapter VI-A was not permissible under Section 143(1) of the Act in response of assessment years prior to A.Y. 2021-22. 7. The relevant operative para of the order of the decision rendered by the Co-ordinate Bench is reproduced hereun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....item, which is inconsistent with another entry of the same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction. 7.1 A joint reading of the above provisions makes it evident that the claim of deduction under section 80P of the Act cannot be allowed the assessee, if the assessee does not file its return of income within the due date stipulated under section 139(1) of the Act w.e.f. assessment year 2018-19 onwards. However, we also note that amendment has been introduced in section 143(1)(a)(v) of the Act to provide that the claim of deduction under section 80P of the Act can be denied to the assessee, in case the assessee does not file its return of income within the time prescribed under section 139(1) of the Act with effect from 01-04-2021 and does not apply to the impugned assessment year i.e. assessment year 2019-20 relevant to financial year 2018-19. Accordingly, in our considered view....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vised return filed in response to notice issued under section 153A. In the case of Lanjani Co-Operative Agri Service Society Ltd. (CPC) v. DCIT [2023] 146 taxmann.com 468 (Chandigarh - Trib.), the ITAT held that the enabling provisions of sub-clause (v) of section 143(1) providing for disallowance of deduction under section 80P due to late filing of return having been introduced by Finance Act, 2021 effective from 1-4-2021, disallowance of deduction claimed under section 80P during relevant years 2018-19 and 2019-20 on grounds of late filing of return was unjustified. 7.4 We note that the instant case, there was a delay in filing the return of income by the assessee for the assessment year 2019-20 and return of income was filed within due date permissible u/s 139(4) of the Act, in which the claim for deduction u/s 80P of the Act was made. Therefore, looking into the totality of facts, we are of the view that claim of deduction u/s 80P of the Act cannot be denied to the assessee only on the basis that the assessee did not file return of income its return of income within due date u/s 139(1) of the Act, in light of the discussion and judicial precedents highlighted above. 8. In t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ced as under: - "80AC Where in computing the total income of an assessee of the previous year relevant to the assessment year commencing on the 1st day of April, 2006 or any subsequent assessment year, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80IC [or section 80-ID or section 80IE], no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139." ******************* "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)..... (ii)..... (iii).... (iv).... (v) disallowance of deduction claimed under [section 10AA or under any of the provisions of Chapter VI-A under the heading "C - Deduction in respect of certain incomes", if] the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi)..... ********* 5.1 The assessee's claim fo....