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TMI Blog2023 (6) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... see failed to do so. The Assessing Officer thereby issued intimation under Section 143(1) of the Act and has categorically disallowed the deduction under Section 80P of the Act on the ground of belated returns. It appears in Part-A, Schedule 6A of the intimation that return is not within the due date but the fact remains that on merit also the assessee has not taken cognisance of its claim. As assessee filed return belatedly and Section 80AC(ii) of the Act is inapplicable in present case. The CIT(A) was right in denying the claim of assessee that of deduction under Section 80P - Decided against assessee. - ITA No. 128/Ahd/2023 - - - Dated:- 17-5-2023 - Ms. Suchitra Kamble, Judicial Member For the Assessee : Shri Dhinal Shah And Shri Bhadresh Gandhakwala, ARs For the Revenue : Shri V.K. Mangla, Sr. DR ORDER This appeal is filed by the Assessee against order dated 11.01.2023 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2019-20. 2. The Assessee has raised the following grounds of appeal :- 1. The learned CIT(A) has not granted deduction of Rs. 4,61,664/- under Section 80P on the ground that there is a del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce Society Limited (CPC) vs. DCIT (2023) 146 taxmann.com 468 (Chandigarh Tribunal). The Ld. AR has also given Gist of submissions which are as follows: 01. The appellant is a Milk Producer Society and eligible for deduction under Section 80P of the Income Tax Act. 02. The appellant filed income tax return on 05-11-2019 which was belated return [beyond the extended due date of filing the return on 31-10-2019]. 03. The CPC Bangalore by Order dated 16-04-2020 made an adjustment of Rs. 4,61,664 being deduction claimed under Section 80P on the ground that the return was not filed within the due date. 04. This adjustment was challenged before CIT(A) by the appellant. 05. The CIT(A) dismissed the appeal of the appellant on the ground that Section 80AC make is amply clear that any deduction that is claimed under Part-C of Chapter VI-A will be admissible only if the return of income is filed within the due date. In this case, the return was admittedly filed late. Further, this adjustment is a mechanical exercise and it can be carried out by the CPC very much within the scope of Section 143(1)(a)(ii) [Para No. 7.2 of the CIT(A) Order]. 06. The CIT(A) also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the judgement]. 13. The Hon ble Chandigarh Bench has also distinguished the decision of Hon ble Madras High Court relied by CIT(A) and that the Hon ble Madras High Court judgement is not applicable on this facts [Para No.14.4 of Chandigarh Bench decision]. 14. The learned CIT(A) made reference to Section 143(1)(a)(ii) in Para No. 7.2 of the order. It may please be noted that this provision is not applicable on the facts as it is not an incorrect claim as this is a Co. op. Society eligible for deduction under Section 80P and that it is an accepted principle of law that a specific provision under Section 143(1)(a)(v) would override the provisions of Section 143(1)(a)(ii). 15. In view of above CPC Bangalore has wrongly disallowed the claim under Section 80P of Rs. 4,61,664/-. 6. The Ld. DR relied upon the intimation order under Section 143(1) of the Act dated 16.04.2020. The Ld. DR further submitted that it is an admitted fact that the assessee filed return of income belatedly for beyond prescribed time limit. The assessee has linked the disallowance of deduction under Section 80P of the Act with carried forward losses and the assessee has not claimed set off of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed forward and set-off of losses. In the present case, the assessee has not claimed set off of carried forward losses of A.Y. 2019-20. The question of carried forward and set-off of losses may arise for A.Y., 2020-21 when the assessee claims the set-off of carry forward of losses. Therefore, the question of disallowance for A.Y. 2019-20 does not arise. In the present case, the assessee has claimed the regular loss of current year for A.Y. 2019-20, therefore the same should be allowed as deduction. 3. However, CIT(A) held that: a) The appellant has linked the disallowance of deduction u/s. 80P of the Act with carried forwarded of losses and stated that the assessee has not claimed set off of carried forward losses for A.Y. 2019-20. The question of carried forward and set-off of losses may arise for A.Y. 2020-21 when the assessee claims the set-off of carry forward of losses and, therefore, the question of disallowance for A.Y. 2019-20 does not arise. This contention of the Appellant is misplaced. Further, CIT(A) quoted section 80AC(ii) which specifies that to claim deduction return should be filed on or before the due date specified u/s. 139(1). b) The provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CPC, very much within the scope of Section 143(1)(a)(ii) of the Act. The Ld. AR submitted that Section 143(1)(a)(v) which was introduced on 01.04.2021 cannot be applicable in A.Y. 2019-20 in the present assessee s case as the Assessing Officer does not have power related to Chapter-VIA Part-C wherein deduction under Section 80P has to be claimed. It is pertinent to note that the assessee has admitted that returns were filed belatedly. The assessee should have filed the return within the extended period of due date but the assessee failed to do so. The Assessing Officer thereby issued intimation under Section 143(1) of the Act and has categorically disallowed the deduction under Section 80P of the Act on the ground of belated returns. It appears in Part-A, Schedule 6A of the intimation that return is not within the due date but the fact remains that on merit also the assessee has not taken cognisance of its claim. The decision of Hon ble Madras High Court in fact is against the assessee and the decision of the Tribunal which has not taken into account Paragraph nos.8 and 9 of the observations made by the Hon ble Madras High Court and thus cannot be applied in the present case. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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