TaxTMI 
TaxTMI 
2026 (5) TMI 726
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....ssee has raised the following grounds of appeal: "1. The Learned Commissioner of Income Tax (Appeals) erred in computing the disallowance of deduction u/s SOP since according to him the Return was not filed in time though the provisions of Section 80AC applicable with effect from Assessment Year 2019-20 was also applicable to the current Assessment Year. 2. The Learned Commissioner of Income Tax (Appeals) erred in disregarding the submission made during the course of appellate proceedings u/s 154 and further erred in holding that the deduction u/s SOP could be disallowed even in the proceedings u/s 143(l)(a) of the Act. 3. The Learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance of Rs.....
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.... of the Act. 5. Aggrieved by such action, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). Before the CIT(Appeals), the assessee submitted that it is a co-operative society engaged in providing credit facilities to its members and that the entire income earned was from members, thereby fully qualifying for deduction under section 80P(2)(a)(i). The assessee contended that the CPC had wrongly disallowed the deduction without assigning proper reasons and that such disallowance could not be made under section 143(1) of the Act as it does not fall within the scope of prima facie adjustments. The assessee further submitted that its claim was not an "incorrect claim apparent from the return" and hence could not ....
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....eal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. 9. We have heard the rival contentions and perused the material on record. The short issue involved in the present case is whether deduction under section 80P of the Act can be denied to the assessee by way of prima facie adjustment under section 143(1) of the Act on the ground that the return of income was filed beyond the due date prescribed under section 139(1) for A.Y. 2015-16. 10. On careful consideration, we find that the issue is no longer res integra and stands covered in favour of the assessee by the decisions of the jurisdictional Tribunal and also the decision of the ITAT Rajkot Bench in the case of Shri Navaniya Seva Sahakari Mand....
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....ie adjustment under section 143(1)(a)(v), for the simple reason that the section was not in force during the period under consideration." "Further, the case of the assessee would also not fall within the purview of prima facie adjustment under section 143(1)(a)(ii)... Therefore, the case of the assessee would also not fall within the purview of prima facie adjustment under section 143(1)(a)(ii)." "It was held that since return of income was filed within due date permissible under section 139(4), in which claim for deduction under section 80P was made, therefore, deduction under section 80P could not be denied to assessee only on basis that assessee did not file its return of income within due date prescribed under section ....