FA 2021 Amendment Disallowing Sec. 80P Claim on Non-filing of ITR isn’t Applicable for AY Prior to 2021-22 | ITAT

Case Details: Chakargadh Seva Sahakari Mandali Ltd. v. Deputy Commissioner of Income-tax (CPC) - [2023] 154 taxmann.com 228 (Rajkot-Trib.)

Judiciary and Counsel Details

• • Annapurna Gupta, Accountant Member & Siddhartha Nautiyal, Judicial Member
  • D.M. Rindani, Ld. A.R. for the Appellant.
  • B.D. Gupta, Ld. Sr. D.R. for the Respondent.

Facts of the Case

Assessee, a co-operative society, filed its return of income for the assessment year 2019-20 on 28-11-2020, declaring total income of certain amount and claiming deduction under section 80P. The extended due date for filing the original return of income for the relevant assessment year was 31-8-2019.

An intimation order was passed under section 143(1)(a) making adjustment in returned income by not granting deduction claimed in the return of income under section 80P as the assessee did not file the return within the due date prescribed under section 139(1).

On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer (AO), and the matter reached the Rajkot Tribunal.

ITAT Held

The Tribunal held that section 143(1)(a)(v) provides that disallowance of deduction claimed under any of the provisions of Chapter VI-A under the heading ‘C.— Deductions in respect of certain incomes’ (which includes deduction under section 80P), can be made if the return is furnished beyond the due date specified under sub-section (1) of section 139. This amendment has been introduced with effect from 1-4-2021.

This amendment was introduced in section 143(1)(a)(v) with effect from 1-4-2021 and does not apply to the impugned assessment year, i.e. the assessment year 2019-20 relevant to the financial year 2018-19.

Accordingly, denial of a claim under section 80P would not come within the purview of prima facie adjustment under section 143(1)(a)(v), for the simple reason that the section was not in force during the period under consideration, i.e. the assessment year 2019-20.

List of Cases Reviewed

• • Chirakkal Service Co-Operative Bank Ltd. v. CIT [2016] 68 taxmann.com 298/239 Taxman 417/384 ITR 490 (Ker.) (para 7.3)
  • ASR Engg. & Projects Ltd. v. Dy. CIT [2019] 111 taxmann.com 49 (Hyd. – Trib.) (para 7.3)
  • Lanjani Co-Operative Agri Service Society Ltd. (CPC) v. Dy. CIT [2023] 146 taxmann.com 468 (Chd. – Trib.) (para 7.4)
  • Lunidhar Seva Sahkari Mandali Ltd. v. Assessing Officer (CPC) [2023] 149 taxmann.com 28/200 ITD 14 (Rajkot – Trib.) (para 7.4) followed.

List of Cases Referred to

• • Chirakkal Service Co-Operative Bank Ltd. v. CIT [2016] 68 taxmann.com 298/239 Taxman 417/384 ITR 490 (Ker.) (para 7.3)
  • ASR Engg. & Projects Ltd. v. Dy. CIT [2019] 111 taxmann.com 49 (Hyd. – Trib.) (para 7.3)
  • Lanjani Co-Operative Agri Service Society Ltd. (CPC) v. Dy. CIT [2023] 146 taxmann.com 468 (Chd. – Trib.) (para 7.3)
  • Lunidhar Seva Sahkari Mandali Ltd. v. Assessing Officer (CPC) [2023] 149 taxmann.com 28/200 ITD 14 (Rajkot – Trib.) (para 7.3).