2024 (12) TMI 1549 - AT - Income Tax

Disallowing the deduction u/s 80P vide intimation u/s. 143(1) - belated filling of return - HELD THAT - Here in this case due to date of filing of return was 30th September 2013 and 30th September 2014 whereas the CPC has made the adjustment on the ground that return itself has been filed belatedly treating the due date as 31st July. First of all once it is a co-operative society then it is required to file the audit report for which different time limit has been provided for filing the return of income under the Act i.e. 30th September. Thus this cannot be the ground for disallowing the claim of deduction. In any case as held by the Tribunal in the aforesaid case prior to A.Y. 2021-22 no such adjustment could have been made within the scope of Section 143(1). Accordingly the adjustment made by the CPC is deleted for both the years. Appeals of the assessee are allowed.

Summary

The judgment from the ITAT Mumbai involves appeals by the assessee against orders by the Addl./JCIT (A)-9, Delhi concerning adjustments made under Section 143(1) for the Assessment Years (A.Y.) 2013-14 and 2014-15. The central issue is the disallowance of deductions under Section 80P, amounting to Rs. 4,91,145 for A.Y. 2013-14 and Rs. 9,84,335 for A.Y. 2014-15, which the CIT(A) confirmed. The CIT(A) initially dismissed the appeal due to a delay in filing, but the Tribunal found no delay since the assessee did not receive the intimation until 02/02/2020 and filed the appeal promptly thereafter.On the merits, the Tribunal held that the adjustments made under Section 80P were improper. The Tribunal referenced a prior judgment in Chandralok Co-operative Housing Society Limited, noting that before A.Y. 2021-22, adjustments under Section 80P were not permissible within the scope of Section 143(1). The Tribunal emphasized that the returns were filed within the due date for a co-operative society, which is 30th September, not 31st July as treated by the CPC. Consequently, the Tribunal set aside the disallowance and allowed the appeals, granting the deductions under Section 80P for both years. The order was pronounced on 31st December 2024.