2023 (6) TMI 438 - AT - Income Tax

Denial of deduction u/s 80P - interest from cooperative banks - denial of deduction on late filing of the return by the assessee - Because of Covid-19 pandemic, the due dates were extended for filing the return - HELD THAT - As noted extended due date for filing the return in the case of the assessee was 10-11-2021. As against that, the assessee filed the return on 27-12-2020. In that view of the matter, it becomes clear that the return filed by the assessee was within the time allowed u/s. 139(1) of the Act as extended by the circular. The view point of the authorities that section 80AC prohibited granting of deduction u/s. 80P(2)(d) on account of late filing of the return is untenable .Therefore, overturn the impugned order and direct to grant the deduction u/s. 80P(2)(d) - Decided in favour of assessee.

Summary

Issues involved: Appeal against denial of deduction u/s 80P of the Income-tax Act on interest from cooperative banks.

Summary:

Issue 1: Denial of deduction u/s 80P(2)(d) due to late filing of return

The appeal arose from the order of the CIT(A) in National Faceless Appeal Centre, Delhi u/s 250 of the Income-tax Act, 1961, concerning the assessment year 2020-21. The only issue raised was the addition of Rs. 4,06,360/- by the Assessing Officer on account of denial of deduction u/s 80P of the Act on interest from cooperative banks. The assessee filed the return within the extended due date of 10-11-2021, but the deduction was disallowed based on late filing. The CIT(A) upheld this decision, citing non-compliance with section 80AC of the Act due to the belated filing. However, the ITAT Pune Vice President noted that the return was filed within the extended due date as per the circular, and ruled in favor of the assessee, directing the grant of deduction u/s 80P(2)(d) for Rs. 4,06,360/-.

Conclusion:
The ITAT Pune allowed the appeal, overturning the decision to deny the deduction u/s 80P(2)(d) based on the late filing of the return.