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TMI Blog2022 (11) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... Denial of claim under section 80P of the Act would not come within the purview of prima facie adjustment under section 143(1)(a)(v) of the Act, for the simple reason that the section was not in force during the period under consideration i.e. assessment year 2019-20. Whether the case of the assessee would fall within the purview of prima facie adjustment under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return)? - The case of the assessee would also not fall within the purview of prima facie adjustment under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return). We also observe that the counsel for the assessee has filed copies of orders passed by Commissioner (Appeals), NFAC in many other cases of cooperative societies having similar issues, in which it has been held that section 143(1)(a)(ii) of the Act does not deal with disallowance of deduction for deed filing of return of income and also the said adjustment is not permissible under section 143(1)(a)(v) of the Act. We note that the instant case, there was a few-month delay in filing the return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,008/- claimed by the Appellant under various sub-sections of Sec. 80P of the Act as per return of income filed for the year. 5. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime up to the hearing of this appeal. Total Tax Effect Rs. 65,510/- 3. The brief facts of the case are that the assessee is a co-operative society, who filed return of income on 30-11-2020 declaring total income of ₹ Nil and claimed deduction of ₹ 2,12,008/-under section 80P of the Act. Thereafter, the assessee received intimation under section 143(1)(a) of the Act making adjustment in the returned income and not granting deduction of ₹ 2,12,008/- claimed in the return of income under section 80P of the Act, since the return of income was not filed within the due date prescribed under section 139(1) of the Act. 4. The assessee filed appeal against the order of Ld. CIT(A), who dismissed assessee s appeal with the following observations: 5. DECISION: 5.1 All the grounds of appeal are related to the solitary issue of disallowance of deduction u/s 80P. I have carefully considered the facts of the case, findings of the AO in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is clearly not eligible to claim exemption u/s 80P of the Act. Therefore, no infirmity is found in the action of the AO of disallowing the appellant's claim of deduction u/s 80P while processing the return u/s 143(1). Accordingly, all the grounds of appeal raised are dismissed. 6.0 In the result, the appeal is treated as dismissed. Order passed under section 250 read with section 251 of the Act. 5. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(A) denying assessee s claim of exemption under section 80P of the Act, 6. Before us, the counsel for the assessee submitted that CPC made adjustment to income of the assessee by denying assessee s claim of deduction of ₹ 2,12,008/- under section 80P of the Act on the ground that the claim of assessee was incorrect under section 143(1)(a)(ii) of the Act since the return of income was not filed within the due date prescribed under section 139(1) of the Act. The counsel for the assessee submitted that the adjustment made by the CPC was beyond the scope of section 143(1)(a)(v) of the Act. The counsel for the assessee submitted that 143(1)(a)(v) of the Act was amended w.e.f. 01- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he return. However, Explanation to the aforesaid section specifies the following cases where the claim made in the return of income can be said to be incorrect for the purposes of this subsection: (a) an incorrect claim apparent from any information in the return shall mean a claim, on the basis of an entry, in the return,- (i) of an item, which is inconsistent with another entry of the same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction 7.1 A joint reading of the above provisions makes it evident that the claim of deduction under section 80P of the Act cannot be allowed the assessee, if the assessee does not file its return of income within the due date stipulated under section 139(1) of the Act w.e.f. assessment year 2018-19 onwards. However, we also note that amendment has been introduced in section 143(1)(a)(v) of the Act to provide that the claim of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided further proceedings in relation to such assessments are pending in statutory hierarchy of adjudication in terms of provisions of Act. In the case of ASR Engg. Projects Ltd. [2019] 111 taxmann.com 49 (Hyderabad - Trib.) , the ITAT held that to be eligible to make claim under section 80-IA or any other section of Chapter VI A, assessee should have filed return of income under section 139(1) and even if it did not make claim for deduction in original return and subsequently file revised return making such claim, its claim for deduction under section 80-IA is maintainable. Therefore, where assessee had filed return under section 139(1), it was entitled to claim deduction under section 80-IA even if such claim was not made in original return but subsequently in revised return filed in response to notice issued under section 153A. 7.4 We note that the instant case, there was a few-month delay in filing the return of income by the assessee for the assessment year 2019-20 and return of income was filed within due date permissible u/s 139(4) of the Act, in which the claim for deduction u/s 80P of the Act was made. Therefore, looking into the totality of facts, we are of the view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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