2023 (5) TMI 1243 - AT - Income Tax

Benefit of section 80P - Claim denied on the ground of belated filing of Return of Income - as argued delay in filing of return of income was occasioned due to reasons beyond the control of the assessee - HELD THAT - Assessee cannot be denied the deduction u/s. 80P 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) is invalid in law and thereby quashed. See LUNIDHAR SEVA SAHKARI MANDALI LTD., LUNIDHAR VERSUS THE ASSESSING OFFICER (CPC) , BENGALURU 2023 (2) TMI 1012 - ITAT RAJKOT - Appeal of the assessee is allowed.

Summary

Issues involved:
The denial of benefit of section 80P u/s 143(1) of the Income Tax Act due to belated filing of Return of Income.

Summary:

Issue 1: Denial of benefit of section 80P
The appeal was against the order of the CIT(A) confirming the denial of benefit of section 80P amounting to Rs. 6,32,082 by the Assessing Officer (CPC) based on belated filing of Return of Income. The assessee contended that the delay was beyond their control and the denial was unjustified. The Tribunal referred to relevant provisions and held that the denial of deduction under section 80P cannot be made if the return of income was filed within the due date permissible u/s 139(4) of the Act. The Tribunal allowed the appeal, quashing the intimation passed by the CPC.

Key Points:
- The assessee filed the return belatedly, leading to the denial of section 80P benefit.
- The Tribunal held that denial of deduction under section 80P is not valid if the return was filed within the permissible due date.
- The intimation u/s 143(1) dated 28/09/2020 was deemed invalid and quashed.
- The decision was based on the interpretation of relevant statutory provisions and judicial precedents.

Decision:
The Tribunal allowed the appeal of the assessee, ruling in favor of granting the deduction u/s 80P of the Act due to the belated filing of the Return of Income being within the permissible due date under the Act.

This summary provides a detailed overview of the judgment, highlighting the issues involved and the Tribunal's decision on the denial of benefit under section 80P of the Income Tax Act.