2022 (6) TMI 1070 - AT - Income Tax

Assessment order passed u/s 143(1) - Disallowance u/s 80P - return was filed beyond the date stipulated under section 139(1) of the Act, the assessee cannot be allowed the benefit of section 80P - HELD THAT - We note that in the case of Chirakkal Service Co-Operative Bank Ltd. Kannur 2016 (4) TMI 826 - KERALA HIGH COURT held that a return filed by assessee beyond period stipulated under section 139(1) or 139(4) or under section 142(1) or section 148 can also be accepted and acted upon for entertaining claim raised under section 80P provided further proceedings in relation to such assessments are pending in statutory hierarchy of adjudication in terms of provisions of Act. We note that the instant case, there was approximately a two-month delay in filing the return of income by the assessee for the respective assessment years A.Y. 2018-19 A.Y. 2019-20 and therefore looking into the totality of facts, in the interests of justice, we are restoring the case to the file of the Ld. CIT(Appeals) for fresh adjudication on merits of the case after giving due opportunity of hearing to the assessee for both the assessment years. Appeals of the assessee are allowed for statistical purposes.

Summary

Issues:
Appeals against disallowance of deduction u/s 80P for AY 2018-19 & 2019-20 due to late filing of return.

Analysis:
1. Background: The appeals were filed by the assessee against the orders of the National Faceless Appeal Centre for the assessment years 2018-19 and 2019-20.

2. Common Issues: Since common issues were involved in both appeals, they were heard together.

3. Grounds of Appeal: The assessee challenged the assessment orders passed by the Assessing Officer and confirmed by the first appellate authority, specifically contesting the disallowance of deduction u/s 80P.

4. Factual Overview: The assessee, a cooperative society, filed returns of income for both years, claiming deductions u/s 80P. The returns were processed under section 143(1) of the Income Tax Act, determining total income with disallowed deductions.

5. Decision of CIT(A): The CIT(A) dismissed the appeals, citing late filing of returns as the reason for disallowance of deduction u/s 80P, as per section 80AC(ii) of the Act.

6. Appellate Tribunal's Analysis: The Tribunal noted the Kerala High Court's decision that late-filed returns can be accepted for claims under section 80P if further proceedings are pending. Considering a two-month delay in filing, the Tribunal restored the case to the CIT(A) for fresh adjudication.

7. Judgment: The Tribunal allowed the appeals for statistical purposes, directing a reevaluation by the CIT(A) after providing the assessee with a fair hearing for both assessment years.

This detailed analysis covers the issues, background, grounds of appeal, factual overview, decisions of the CIT(A), the Tribunal's analysis, and the final judgment, providing a comprehensive understanding of the legal judgment.