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TMI Blog2024 (9) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have been made. Accordingly, we hold that disallowance made by the CPC u/s. 143(1)(a) on the claim of deduction u/s. 80P is beyond the scope of adjustment u/s. 143(1) - Decided in favour of assessee. Delay in filing of the return - Section 80AC specifies the under which section deduction would not be allowed unless the return was furnished on or before the due date specified u/s 139(1). The disallowance of deduction claimed u/s 80P(2)(d) is not mentioned therein As before 01.04.2018 the disallowance of deduction u/s 80IA, 80IAB, 80IB, 80IC, 80ID, 80IE only could be made in case of belated filing of returns. Therefore, deduction u/s 80P(2)(d) is not hit by the provisions of 80AC. - Shri Sandeep Singh Karhail, Judicial Member And Smt. Renu Jauhri, Accountant Member For the Appellant : Shri Rajesh Shah For the Respondent : Shri R. R. Makwana ORDER PER RENU JAUHRI [A.M.] :- These appeals are filed by the assessee against the order of the Learned Additional/Joint Commissioner of Income-tax (Appeals), Surat-2 /National Faceless Appeal Centre, Delhi [hereinafter referred to as Addl. CIT(A) ] dated 11.03.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The relevant portion of the affidavit is reproduced below: ........................... 2. The society is a small Co-operative Housing Society Ltd. 3. The society is looking after the welfare of the members namely, collecting the contribution from each member of the society who are having flat in the society and incurring an expenditure in respect of Municipal Tax, cleanliness of the society building, water tax and other matters of the common interest of the society. 4. The society is managed by 5 voluntary members (without any remuneration) who are normally busy with their own business. The managing committee members are usually appointed by persuasion since no member like to join managing committee to carry out honorary work. 5. The society normally has a part time accountant who looks after the accounts, and files tax returns. 6. The society totally relies on such accountant since they can't afford the higher fees for this type of work to keep qualified person. 7. In the case of the society normally the Income Tax Returns are accepted without any adjustment. Even in between certain years returns have been accepted on the basis of the returns filed and claim u/s. 80P(2) (d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO had no power to make any adjustment u/s. 143(1) up to A.Y.2021-22. The said principal has been decided in the case of ITAT No.682/Mum/2024 in respect of Vishva Villa Co-operative Housing Society Limited. Therefore, the Intimation passed with adjustment itself is bad in law. 9. . . 2015-16 a) In this year the Return was delayed, however the Rectification Petition was pending. Considering the fact that CPC has not power to make any adjustment u/s. 143(1) of the Act. The appellant request that the delay may be condoned. whatever stated above is correct best to my knowledge and belief. 6. Ld. AR has also placed reliance on a recent decision of the co-ordinate in the cases of Vishva Villa Co-op. Housing Society Ltd. v/s ITO, Ward 19(3)(1) in ITA No. 682 to 684/Mum/2024 wherein on similar facts, the issue has been decided in favour of the assessee. 7. We have heard the rival submissions. We find that the assessee had filed a rectification application u/s 154 of the Act which is still pending, as per the screenshot taken on 25.07.2024. He was therefore under a bonafide belief that his request for rectification would be allowed since for AY 2013-14, he had already received order u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn has been filed by the assessee on 02/09/2012 and 20/09/2013 respectively. 10. Admittedly assessee is a Co-operative Housing Society registered under Maharashtra Society act 1960 and as per the said act of the Co-operative Housing Societies have to get their accounts audited ones there is requirement to furnish and audit before from Charted Accountant, and therefore the due date was 31/10/2012 and 31/10/2014 for the A.Y 2012-23 and 2014 15 respectively and thus assessee had filed the return of income within the due date of under section 139(1). Thus even under amended provision no prima facie adjustment have been made no prima facie adjustment on account of deduction u/s. 80P could have been made. In the early provision of adjustment u/s. 143(1)(a) no such disallowance could have been made. Accordingly, we hold that disallowance made by the CPC u/s. 143(1)(a) on the claim of deduction u/s. 80P is beyond the scope of adjustment u/s. 143(1) accordingly the adjustment is deleted. 8. Respectfully following the order of the co-ordinate bench, the appeal of the assessee is allowed and the AO is directed to allow the claim of 80P(2)(d) of the Act. ITA No. 2601/MUM/2024 (A.Y. 2014-15) 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IC, ii. the 1st day of April, 2018, any deduction is admissible under any [provision of this Chapter under the heading C.-Deduction in respect of certain incomes , no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under the sub section (1) of section 139. 13. From the above, it is seen that before 01.04.2018 the disallowance of deduction u/s 80IA, 80IAB, 80IB, 80IC, 80ID, 80IE only could be made in case of belated filing of returns. Therefore, deduction u/s 80P(2)(d) is not hit by the provisions of 80AC. 14. Rest of the facts being similar to AY 2013-14 and 2014-15, it is held that the disallowance made by the CPC u/s 143(ia) on the claim of deduction u/s 80P(2)(d) is beyond the scope of adjustment u/s 143(1) of the Act and it is accordingly deleted. ITA No. 2603/MUM/2024 (A.Y. 2016-17) 15. The assessee has raised following grounds for AY 2016-17: 1. The Grounds mentioned here under are without prejudice to one another i. On the facts and circumstances the case The Learned Addl/Jt c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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