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TMI Blog2023 (1) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to appear before him with cogent materials for substantiating his case and also directed to avoid unnecessary adjournments for early disposal of the case. Appeal of the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... ct allowed deduction as per section 80P(2)(a)(i) of the Act and disallowed only Rs.7,05,450/- treating it as an income from other sources. The CIT(A) gave enhancement notice to the assessee mentioning the reasons for enhancement in the notice but the assessee did not respond. Accordingly, the CIT(A) following the amended section 80(AC)(ii) of the Act and observing that the assessee did not file its return of income within the due date for claiming deduction, disallowed the claim of deduction u/s 80P(2)(a)(i) & enhanced the income determined by the AO and dismissed the appeal of the assessee by holding as under: "5.4 Enhancement notice Therefore, during the appellate proceedings, the appellant was given an opportunity to explain why the income should not be enhanced to the extent of Rs. 29,39,414/-. The enhancement notice dated 12 April 2022 is reproduced below: On perusal of the intimation u/s 143 (1) dated 01.07. 2019 for AY 2018- 19, it is seen that the appellant filed ITR on 9 November 2018. Therefore, the AO, CPC disallowed deduction u/s 80P of Rs. 36,44,859/-. However, the AO while completing the assessment u/s 143 (3) dated 22.02.2021 ignored the fact that the ITR was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.] 5.8 The language of the section 80AC is very clear and unambiguous. As per the provisions of section 80AC, which is effective from AY 2018-19, to avail the benefits of deduction u/s 80P, the ITR shall be filed on or before the due date specified u/s 139(1). In the instant case, the appellant filed the original ITR for the AY 2018-19 on 09.11.2018 beyond the due date (extended due date being 31 October 2018). The AO while passing the order u/s 143(3) ignored the fact that the appellant filed the return beyond the due date specified u/s 139(1) and allowed the deduction u/s 80P of Rs 29,39,414/- as against the claim of Rs.36,44,860/-. Therefore the enhancement notice was issued. The appellant not responded to the enhancement notice and the subsequent reminders issued to the appellant till the date of passing of this order. 5.9 Taking into consideration the provisions of section 80AC, which are effective from AY 2018-19, I am of the considered view that to avail the benefits of deduction u/s 80P, the ITR shall be filed on or befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the CIT(A) issued notice on various dates but it was not received by the assessee and being a Co-operative Society and it is a group of members therefore the case was not represented. He also submitted that the CIT(A) has wrongly enhanced the income of the assessee and the matter was not before him in regard to deduction under section 80P(2)(a)(i) of the Act. The issue was raised only for claiming deduction on interest and dividend income received from various banks and others. The AO allowed the deduction under section 80P(2)(a)(i) of the Act. He further requested that the matter may be sent back to the CIT(A) for giving an opportunity for explaining the reasons. 6. The learned DR relied on the order of the CIT(A) and he submitted that the assessee did not file his return of income within the extended due date. Accordingly, he is not liable for claiming deduction as per amended section 80AC of the Act. The AO, ignoring the disallowance for deduction as per section 143(1)(a) of the Act and allowed the deduction under section 80P(2)(a)(i) of the Act which is not as per the law. He relied on the judgment of Co-ordinate Bench of the Bangalore ITAT in the case of M/s. Syndicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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