TaxTMI 
TaxTMI 
2025 (5) TMI 1771
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....ter called "the CPC") determined the total income of the assessee-society at Rs. 21,61,640/- without allowing the assessee's claim of deduction under section 80P of the Act. 2.1 Thereafter, the assessee approached the ld. First Appellate Authority challenging the failure of the CPC to grant statutory deduction under section 80P(ii)(vi) of the Act. However, the ld. CIT(A) observed that for making claim of deduction under section 80P of the Act, the assessee was either required to file the revised return or if time for revision was not available, make a claim before the competent authority for condonation of delay. The ld. CIT(A) observed that since the assessee had neither revised the return of income nor made any application for condonation of delay, the ld. CIT(A) was not empowered to condone either the delay or allow any claim of deduction. The ld. CIT(A) further noted that even as per the provisions of section 80AC (ii) of the Act, no deduction under any provisions of Chapter VIA was to be allowed w.e.f. 1.4.2018 unless the assessee had filed the return of income on or before the due date specified under section 139(1) of the Act and since in the instant case, the assessee ha....
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....es not permit such variations both on its own and without giving an opportunity to the assessee, the processing of return itself being against the provisions of law making the intimation issued u/s 143(1) is without jurisdiction, the order passed by CIT(A) be quashed/set aside, the deduction as claimed u/s. 80P in the return of income and as allowable to the assessee, be allowed. 3.0 The ld. authorized representative of the assessee submitted that the deduction had wrong been denied. The ld. authorized representative of the assessee placed reliance on the order of the Rajkot Bench of the ITAT in ITA No.186/RJT2022 in the case of Ambaradi Seva Sahkari Mandali Ltd. Vs. DCIT (CPC), Bengaluru and other group cases, wherein vide order dated 10.02.2023, the Rajkot Bench had held that even when the assessee has not filed its return of income in terms of section 139(1) of the Act, the assessee would be eligible for claim of deduction under section 80P of the Act notwithstanding the provisions of section 80AC(ii) of the Act. Reliance was also placed on the orders of ITAT Delhi Bench in the case of Sahakari Ganna Vikas Samiti, Sambhal vs. ITO-2(5), Chandausi in ITA No.2090/DEL/2022, vide ....
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.... 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 hereunder: "7. We have heard rival contentions and perused the materials available on record. It is apparent from the order of the ld. CIT(A) that Sahakari Ganna Vikas Samiti vs. ITO the amendment in Section 143(1) made by Finance Act, 2021 which is not applicable for the present Assessment Year 2019-20. However, the same was not considered by the Ld. CIT(A). 7.1. The Co-ordinate Bench of this Tribunal in Lunidhar Seva Sahakari Mandali Ltd. (supra) considered the above amendment and held as follows: "7. We have heard the riv....
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....nt 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, denial of claim under section 80P of the Act would not come within the purview of prima facie adjustment under section 143(1)(a)(v) of the Act, for the simple reason that the section was not in force during the period under consideration i.e. assessment year 2019-20. 7.2 The second issue for consideration is that whether the case of the assessee would fall within the purview of prima facie adjustment unde....
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....n 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 the result, appeal of the assessee is allowed." 7.2. Consistent with the view taken by the Tribunal under identical circumstances, we have no hesitation in holding that the assessee cannot be denied the deduction u/s. 80P of the Act on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act under ....