2023 (11) TMI 1248 - AT - Income Tax

Rectification u/s 254 - Denial of claim of deduction u/s. 80P by way of prima facie adjustment u/s. 143(1)(a)(v) - ITAT allowed deduction - HELD THAT - ITAT has given a detailed legal as well as factual finding has to why the denial of claim of deduction u/s. 80P cannot be made by way of prima facie adjustment u/s.143(1)(a)(v) of the Act for the impugned assessment order i.e. A.Y. 2019-20 2022 (10) TMI 1236 - ITAT RAJKOT . We observe that ITAT has given a detailed factual and legal finding/discussion while deciding this issue. Further, the decision cited by Department is not on the issue of denial of claim by way of adjustment made u/s. 143(1)(a)(v) of the Act and has been rendered on its own set of facts while the assessee s facts are on a different footing. Accordingly, on going through the order passed by the ITAT, we find no apparent mistake in the order passed by the ITAT so as to call for any interference. Miscellaneous Application filed by the Department is dismissed.

Summary

Issues:
The Department filed a Miscellaneous Application against the ITAT order denying deduction u/s. 80P based on belated filing of return.

Summary:
The Department contended that the ITAT did not consider the binding decision of Madras High Court regarding denial of claims in case of belated returns. The ITAT, however, noted that the amendment in section 143(1)(a)(v) post-April 1, 2021, does not apply to the assessment year in question, 2019-20. The ITAT emphasized that denial of claim under section 80P does not fall under prima facie adjustment under section 143(1)(a)(v) for the relevant assessment year. The ITAT also analyzed the scope of adjustments under section 143(1)(a)(ii) and concluded that the case did not warrant denial of deduction under section 80P. The ITAT referred to previous judicial decisions supporting the acceptance of belated returns for deduction claims under section 80P. Consequently, the ITAT allowed the appeal and remanded the case for fresh adjudication by the CIT(Appeals).

The ITAT provided a detailed legal and factual analysis supporting its decision to disallow the Department's claim for deduction denial under section 80P. The ITAT found no apparent mistake in its order and dismissed the Department's Miscellaneous Application.