TaxTMI 
TaxTMI 
2026 (1) TMI 239
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....uction u/s 80P of the act despite filing Return of income beyond due date u/s 139(1) of the act, was dismissed. 3. The brief facts of the case shows that that assessee is a credit cooperative society claim the whole of the income is exempt under section 80P of the act and hence it filed its return of income declaring Rs. Nil as taxable income. The original return of income was filed after the due date prescribed and therefore the central processing Centre disallowed the deduction under section 80p of the act. 4. Fact shows that the due date of the filing of the return for the impugned assessment year 2019-20 was 31st of August 2019 which was filed by the assessee on 2 May 2020. The return of income was showing that the assessee has claimed deduction of Rs. 614,601 under Chapter VI A of the act. Thus admittedly the return of income was filed beyond due date prescribed under section 139(1) of the act. Assessee was issued communication for adjustment on 3/8/2020 and then intimation was passed. Assessee filed rectified return u/s 154 of the act, The intimation rejecting such rectification u/s 154 was passed on 27 June 2023 wherein the above deduction was also once again denied by....
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....rictly fall within the limited scope of the provision and any issue involving debatable, interpretation on a jurisdictional matters cannot be added as an adjustment while processing the return of income. According to him, if a disallowance which requires examination of facts, interpretation of provisions, or evaluation of the assessee's eligibility cannot be made under section 143 as such issues for outside the permissible scope of prima facie adjustments. He further submitted that where there are to views possible, it is not correct that adjustment can be made under section 143(1) of the act to support his contention he heavily relied on the decision of the coordinate bench in ITA No. 604 Bangalore 2024 for assessment year 2019-20 in case of Arathi Vinay Patil. 9. The learned departmental representative vehemently supported the issue that the honourable madras High Court in case of Veerappampalayam primary agricultural cooperative credit society Ltd tax [2022] 138 taxmann.com 571 (Madras)[07-04-2021] squarely covered the issue against the assessee. He further referred that the provisions of section 80AC introduced from 2019 squarely covered the issue against the assessee. T....
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....ly indicates that a deduction claimed under Section 80P of the Income-tax Act, 1961, in a return filed beyond the due date specified under Section 139(1), is liable for disallowance. This is primarily due to the mandate of Section 80AC, which requires timely filing for all Chapter VI-A deductions, including Section 80P, effective from April 1, 2018. b) On or after April 1, 2021, the disallowance of such a claim during automated processing under Section 143(1) would specifically fall under Section 143(1)(a)(v), a provision introduced to address this issue. c) Further, sixth proviso to Section 139(1), inserted by the Finance Act, 2021, specifies that if the total income, without giving effect to the provisions of Chapter VI-A, exceeds the maximum amount not chargeable to income-tax, the return shall be furnished on or before the due date. This proviso underscores the legislative intent to ensure timely compliance for availing Chapter VI-A benefits. d) For assessment years before the statutory amendment that came into force w.e.f. 01.04.2021, a deduction under Chapter VI-A such as section 80P claimed in a return filed after the due date cannot be denied mere....
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..... The admitted facts are: (i) None of the Societies have filed returns of income within the time stipulated under Section 139 of the Act and returns have been filed belatedly on various dates, (ii) The Central Processing Centre (CPC), upon receipt of the returns filed, had issued communications proposing an adjustment in terms of Section 143(1)(a) of the Act. The reason for the proposed adjustment is 'error/incorrect claim/inconsistency' and the details are set out in Part A of the communication reading as follows: PART-A Adjustment u/s.143(1)(a) (ii) Incorrect Claim u/s. 143(1)(a)(ii) Sl. No. Schedule Error Description Amount in Income Tax Return Amount as computed Variance on account of Proposed adjustment 1 Schedule VIA In schedule VI-A, under Part- C deduction in respect of certain incomes, in Sl.No.2.1 deduction is claimed under Section 80P however return is not filed within due date 1537745 0 1537745 (iii) None of the petitioner societies have either responded to the notices or furnished any explanation in regard to the proposed alleged adjustment. (iv) In view of the utter....
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.... (a) the total income or loss shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub- section (1) of section 139; (iv) disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under sections 10AA, 80IA, 80IAB, 80IB, 80IC, 80ID or section 80IE, if the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if an....
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....rived at on the legal issue. 10. These writ petitions are dismissed and connected Miscellaneous Petitions are also closed." 14. The facts are identical before me. Thus, all the decision relied up on by the ld AR which are of SMC benches or division benches cannot be followed by me as the decision of Honourable Madras high court covers the issue and binds me. No other contrary decisions of any other high courts are shown to me. 15. Distinguishing the decision of a honourable high court in such a situation by the tribunal on one pretext or other violates the judicial discipline. 16. Honourable Madras High court also holds in Para no 7 which is contended by the ld AR relying on the decision of coordinate bench in Arthi VInay Patil [Supra], ld DR also does not deny that. 17. We find that assessee can avail the provision of section 119(2)(b) of the act by filing an application before the prescribed authority for condonation of delay in filing of ROI for AY 2018-19 for claiming deduction u/s 80P of the act for that year. Because of some practical difficulties faced by co-operative societies, particularly delays in getting accounts audited under various State Laws, th....
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....der any of the provisions of Part C of Chapter VIA would be admissible in the case of a belated return." (Para 8). Therefore, according to that decision of Honourable Madras High court action of CPC of disallowing Section 80P deduction for belated returns even under the general Section 143(1)(a)(ii) for AY 2018-19 is valid. 20. Coordinate benches decision cited before us have held that such disallowances could not be made under the general Section 143(1)(a)(ii) either, as the definition of 'incorrect claim' in its Explanation did not cover belated filing. The Madras High Court's decision for AY 2018-19, which upheld such a disallowance under Section 143(1)(a)(ii), has been distinguished by tribunals on the grounds that the specific legal argument regarding the effective date of Section 143(1)(a)(v) was not fully considered. Therefore, the decisions of coordinate benches also bind me. 21. However as honourable Madras high court has considered the whole section, reproducing it, being binding precedents of higher judicial forum, in absence of any contrary decision of other honourable high courts, I, accordingly, respectfully following the decision of Honourable Madra....