2025 (3) TMI 2233

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....operative Societies Act, 1969. The assessee had not filed return of income for AY 2017-18. The Income Tax Officer, Ward-1, Alappuzha (hereinafter "the AO") completed the assessment u/s. 144 of the Income Tax Act, 1961 (the Act) by order dated 13.12.2019, disallowing the claim for deduction u/s. 80(P) of the Act. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 4. Being aggrieved, assessee is in appeal before this Tribunal in the present appeal. 5. The learned counsel for the assessee submitted that the CBDT Circular 133/6 of 2007 dated 09.05.2007 clearly states the intention of the statute that all co-operative societies other than co-operative banks are eligible....

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....we find that a reading of Section 80A(5) and Section 80AC of the IT Act as they stood prior to 1.4.2018, when the latter provision was amended by Finance Act 2018, would reveal that the statutory scheme under the IT Act was to admit only such claims for deduction under Section 80P of the IT Act as were made by the assessee in a return of income filed by him. That return can be under Sections 139(1), 139(4), 142(1) or Section 148, and to be valid, had to be filed within the due date contemplated under those provisions. Under Section 80A(5), the claim for deduction under Section 80P could be made by an assessee in a return filed within the time prescribed for filing such returns under any of the above provisions. The amendment to Section 80AC....

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....at a provision for deduction or exemption under a taxing Statute has to be strictly construed against the assessee and in favour of the Revenue. Thus viewed, a failure on the part of an assessee to comply with the precondition for obtaining the deduction cannot be condoned either by the statutory authorities or by the courts. 13. It is in the backdrop of the aforesaid discussion that we must consider the findings of a Division Bench of this Court in The Chirakkal Service Co-operative Bank Ltd. [supra]. The findings therein, that appear to suggest that a claim for deduction under Section 80P can be entertained even if it is made in a return filed beyond the time permitted under the IT Act, ignores the perspective that sees the requi....