TaxTMI 
TaxTMI 
2025 (9) TMI 288
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....ction of the ld. CIT(A) in confirming the intimation issued u/s 143(1) of the Act wherein the assessee has been denied the benefit of deduction u/s 80P of the Act. It was the submission that the assessee has been denied the benefit of section 80P on the ground that the return had not been filed within the due date prescribed u/s 139(1) of the Act. It was the submission that the issue is squarely covered by the decision of the Coordinate Rajkot Bench of this Tribunal in the case of Lunidhar Seva Sahkari Mandali Ltd. vs. Assessing Officer (CPC) reported in [2023] 149 taxmann.com 28 (Rajkot-Trib.) wherein it was held as follows: "7.2 The second issue for consideration is that whether the case of the assessee would 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). In our view, the scope of the adjustments that can be made under the said provision has been elaborated in the Explanation to the aforesaid section, which does not include denial of deduction claimed by the assessee in case the assessee does not furnish its return of income within the date stipula....
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....ble 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 Shree Lunidhar Seva Sahkari Mandali Ltd. vs. A.O. 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." 4.1 He also relied upon the decision of the Coordinate Pune Bench of this Tribunal in the case of Finolex Industries Ltd. Employees' Co-op Credit Society Ltd. vs. ITO in ITA No.76/Pun/2023 dated 03.04.2023 wherein the Coordinate Bench has held as follows: "5. We have heard the submissions of the parties, considered the relevant materials/documents on record and analysed the facts and circumstances in Finolex Industries A.Y. 2019-20 this case. Section143(1)(a)(v) of the Act spells out that if any deduction is claimed under any of the provisions of Chapter VI-A which include deduction u/s 80P such deduction has to be allowed only if the return is filed within due date specified under subsection 139(1) o....
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....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/2022 for A.Y. 2019- 20 (which has been co-authored by one of us i.e. by Hon'ble Vice President), the relevant portion of which is reproduced as under:- "2. As per the grounds of appeal, the assessee has challenged the denial of deduction claimed under Section 80P of the Act while drawing intimation under Section 143(1) of the Act on the premise that the assessee has not filed the return of income within the due date specified under Section 139(1) of the Act for the A.Y. 2019-20 in question. 3. When the matter was called for hearing, the Learned Counsel submitted that the deduction has been denied taking shelter of Section 80AC(ii) of the Act. In this regard, it was submitted that the assessee has filed and uploaded the return which is belated by only one day on account of technical difficulties i....
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....n 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 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 rival contentions and perused the material on record. In the instant facts, admittedly the assessee did not file return of income within the time permissible under section 139(1) of the Act. However, the assessee filed its return of income belatedly on 30-11-2020 and claim....
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....ever, 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 under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return). In our view, the scope of the adjustments that can be made under the said provision has been elaborated in the Explanation to the aforesaid section, which does not include denial o....
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....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 proceedings made u/s. 143(1) of the Act for the Assessment Year 2019-20. Thus the intimation u/s 143(1) dated 28/09/2020 is invalid in law and thereby quashed. 8. In the result, the appeal of the assessee is allowed." 8. In the light of observations towards impermissibility to make adjustments towards deduction cla....
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....otice 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 for deduction under section 80P of the Act falls under provisions of Chapter VIA of the Act. It is a fact that the amendment to Section 143(1)(a)(v) of the Act, enabling disallowance of deduction claimed Chapter VIA of the Act, was made by the Finance Act, 2021, w.e.f. 01.04.2021. The present case before us pertains to assessment year 2019-20 (previous year 2018-19). It can be readily inferred, therefore, that an assessee will not be hit by provisions of Section 80AC of the Act, having regard to the assessee claim for deductions under Chapter....