9911796707
TMI Blog2024 (9) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... nd any merit in the appeal filed by the assessee. The decision relied upon by the assessee either concerns its self with pre-amended Section 80AC or concerns itself with adjustment made u/s 143(1)(a) while processing of the return wherein disallowance u/s 80P was made. We are not presently concerned with these disallowances. As have observed that CBDT in exercise of its power 119(2)(b) of the 1961 Act has issued Circular No.13/2023 dated 26.07.2023 in F.No. 173/21/2023-ITA-1, to deal with the cases where deduction u/s 80P could not be granted owing to return of income being filed beyond the due date specified u/s 139(1), and its condonation by merits by the Competent Authority as specified in the aforesaid Circular. Assessee, if may so advised, can file such application for condoning of the delay before Competent Authority as prescribed under the aforesaid circular, which shall be disposed off by the Competent Authority on merit in accordance with law. The Competent Authority while disposing such application for condoning the delay shall consider that the assessee was pursuing alternate remedy with appellate forums viz. ld. CIT(A) and ITAT. Thus, the appeal of the assessee stand di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. 148 dated 25-03-2022 was issued by the AO to the assessee. The assessee filed return of income in pursuance to notice u/s 148, declaring Nil Income Thereafter, notices were issued by the AO u/s. 142(1) of the Act. The assessee submitted its reply during reassessment proceedings. The assessee is engaged in the business of credit co-operative society that is accepting deposit from members as well as taking loan from co-operative banks and providing credit facilities to its members during the year under consideration. The assessee is also selling fertilizer, pesticides and seeds to farmers for agricultural activity. The Assessing Officer assessed income u/s. 147 r.w.s. 144B of the Act assessing total income of assessee at Nil , but vide computation sheet issued by the Assessing Officer which was part of the assessment order, the deduction u/s. 80P of the Act of Rs. 3,92,061/- was denied to the assessee. and notice of demand u/s 156 of Rs. 2,58,357/- was raised by the AO, vide reassessment order dated 29.03.2023 passed by the AO u/s 147 read with Section 144B of the 1961 Act. 4. Assessee being aggrieved by the aforesaid reassessment order filed first appeal with the ld. CIT(A), and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 139(1) of the Act. As the return in these cases, for the assessment years 2009-10 and 2010-11, were admittedly filed after the dates prescribed under Sections 139(1) and 139(4) or in the notices issued under Section 142(1) and Section 148, the returns were indeed non-est and could not have been acted upon by the Assessing Officer even though they were filed before the completion of the assessment. 12. There is yet another aspect of the matter. The requirement of making the claim for deduction in a return of income filed by the assessee can be seen as a statutory pre-condition for claiming the benefit of deduction under the IT Act It is trite that a provision for deduction or exemption under a taxing Statute has to be strictly construed against the assessee and in favour of the Revenue Thus viewed, a failure on the part of an assessee to comply with the precondition for obtaining the deduction cannot be condoned either by the statutory authorities or by the courts. 4.3 The ld. CIT(A) held that claim of deduction u/s. 80P claimed by the assessee in the return of income not filed u/s. 139(1) of the Act cannot be allowed, and since the assessee has filed return of income belated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act cannot be denied to the assessee only on the basis that the assessee did not file return of income its return of income within due date u/s 139(1) of the Act, in light of the discussion and judicial precedents highlighted above. 5.3 Thus, it was prayed by ld. counsel for the assessee that deduction u/s. 80P be allowed to the assessee. The ld. Sr. D.R. on the other hand, submitted that law is very clear on the subject and no deduction can be allowed to the assessee keeping in view the amended provision of the Statute i.e. 80AC of the Act, which was substituted by Finance Act, 2018 w.e.f. 01.04.2018. 6. We have considered rival contentions and perused the material on record. The assessee has claimed that it is engaged in the business of activities of Credit Co-operative society wherein it is accepting deposits from its members as well as taking loan from Co-operative Banks and providing credit facilities to its members during the year. Apart from this, the society is also selling Fertilizers, Pesticides and seeds to farmers for agricultural activities. The assessee did not file its return of income originally u/s 139(1) of the 1961 Act. As per NMS information shows that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO in notice of demand u/s 156, which are integral part of the assessment order. Thus, it is a case wherein ex-facie wrong claim dehors the substituted provisions of Section 80AC is raised by the assessee. Thus, non mention of the disallowance of deduction u/s 80P in the body of assessment could be an irregularity on the part of the AO w.r.t. this ex-facie wrong and incorrect claim of deduction u/s 80P, but it could not be extended to the level that the disallowance of deduction u/s 80P as was made by the AO could be quashed, as the assessee has not filed the said claim of deduction u/s 80P in the return of income filed within the due date as prescribed u/s 139(1) of the 1961 Act and hence the said claim of deduction is an ex-facie incorrect filed by the assessee in the return of income filed in pursuance to notice u/s 148 which is return of income filed belatedly beyond the due date prescribed u/s 139(1) and thus being the ex-facie wrong claim filed by the assessee keeping in view the substituted provisions of Section 80AC. The law was amended by Finance Act, 2018 w.e.f. 01.04.2018, wherein Section 80AC was substituted effective from assessment year 2018-19. We are presently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , we do not find any merit in the appeal filed by the assessee. The decision relied upon by the assessee either concerns its self with pre-amended Section 80AC or concerns itself with adjustment made u/s 143(1)(a) while processing of the return wherein disallowance u/s 80P was made. We are not presently concerned with these disallowances. However, we have observed that CBDT in exercise of its power 119(2)(b) of the 1961 Act has issued Circular No.13/2023 dated 26.07.2023 in F.No. 173/21/2023-ITA-1, to deal with the cases where deduction u/s 80P could not be granted owing to return of income being filed beyond the due date specified u/s 139(1), and its condonation by merits by the Competent Authority as specified in the aforesaid Circular . The assessee, if may so advised, can file such application for condoning of the delay before Competent Authority as prescribed under the aforesaid circular, which shall be disposed off by the Competent Authority on merit in accordance with law. The Competent Authority while disposing such application for condoning the delay shall consider that the assessee was pursuing alternate remedy with appellate forums viz. ld. CIT(A) and ITAT. Thus, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
