I T S P M M SEVAKANCHI SAHAKARI PATSANSTHA MARYADIT,PUNE V. THE INCOME TAX OFFICER, WARD-2(10, KOLHAPUR, KOLHAPUR

ITA 1772/PUN/2024

AI Insights

The case involves ITSPMM Sevakanchi Sahakari Patsanstha Maryadit, which appealed against the order of the NFAC, Delhi, concerning the assessment year 2018-19. The appellant had filed a return declaring nil income after claiming a deduction under section 80P of the Income-tax Act, 1961. However, the return was filed beyond the extended due date of 31.10.2018, leading to the disallowance of the claimed deduction. The tribunal's decision was influenced by the statutory provision under section 80AC, which mandates that deductions under Chapter VIA are only admissible if the return is filed within the due date specified under section 139(1).

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32544 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 16-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 26-08-2024
• Other Referred Cases: EBR Enterprises and Another Vs. Union of India and Another (2019) 415 ITR 139 (Bom.)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B. S. RAJPUROHIT
• Section: 264

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1772/PUN/2024 \u000bनधा\u000fरण वष\u000f / Assessment Year : 2018-19 ITSPMM Sevakanchi Sahakari Patsanstha Maryadit, Indapur, Pune 413 106 Maharashtra PAN : AAAAI8805J Vs. ITO, Ward-2(1), Kolhapur Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the appellant directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 28.06.2024 for the assessment year 2018-19. 2. The appellant filed the return of income for the A.Y. 2018-19 on 23.03.2019 declaring nil income after claiming deduction u/s.80P of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). The return was processed u/s.143(1) of the Act vide intimation dated 14.06.2019 making prima-facie adjustment by disallowing the deduction of Rs.16,96,160/- u/s.80P of the Act. 3. Being aggrieved by the above intimation, an appeal was filed before the NFAC who vide impugned order confirmed the action of the Assessee by : None (Adjournment rejected) Revenue by : Shri B.S.Rajpurohit Date of hearing : 16.10.2024 Date of pronouncement : 16.10.2024 ITA No.1772/PUN/2024 2 CPC on the ground that the appellant is ineligible to claim deduction u/s.80P as the appellant filed the return u/s.139(4) on 23.03.2019, which is beyond the extended due date of filing the return, i.e. 31.10.2018. 4. Being aggrieved, the appellant is in appeal before the Tribunal. 5. During the course of hearing, none appeared on behalf of the appellant despite due service of notice of hearing. However, an adjournment petition was filed. The adjournment petition is rejected as the issue in appeal can be decided with reference to plain provision of section 80AC of Act. 6. I heard the ld. Sr. DR and perused the material on record. The issue in the present appeal relates to the allowability of deduction u/s.80P of the Act. Admittedly, in the present case, the appellant claimed deduction of interest income of Rs.16,96,160/- u/s.80P of the Act earned by it. No doubt, this Tribunal has been taking a consistent view that such interest income qualifies for deduction u/s.80P(2)(d) of the Act. But in the present case, the appellant had not filed any return of income either u/s.139 of the Act. The CPC had rightly made the adjustment by disallowing the exemption claimed u/s.80P of the Act. The NFAC also had rightly affirmed the action of the CPC by holding that any deduction sought under Part C of Chapter VIA will be admissible only if the return of income for that particular year is filed within the prescribed due date u/s.139(1) of Act with effect from the A.Y. 2018-19. Consequently, no claims under any of the provisions in Part C of Chapter VIA will be admissible in the case of a belated return. Section 80AC provides that where an assessee does not file return of income within the due date specified u/s.139(1), no deduction shall be allowed. There is nothing in section 80AC that embargo is limited to the power of Assessing Officer only. It was so held by the ITA No.1772/PUN/2024 3 Hon’ble Bombay High Court in the case of EBR Enterprises and Another Vs. Union of India and Another (2019) 415 ITR 139 (Bom.) by holding as under : “8. However, the Petitioners are faced with the statutory provision contained in Sub Section (5) of Section 80A of the Act. The Petitioners' claim cannot therefore be accepted de hors the said statutory provision and ordinary principle of the wide powers of the Commissioner of Income-tax exercising revisional jurisdiction under Section 264 of the Act cannot be imported. What Sub Section (5) of Section 80A of the Act mandates is that, if the assessee fails to make a claim in his return of income for any deduction under the provisions specified therein, the same would not be granted to the assessee. This condition or restriction is not relatable to the Assessing Officer or the Income Tax Authority. This condition attaches to the claim of the assessee and has to be implemented by the Assessing Officer, Commissioner of Income-tax or the Appellate Tribunal as the case may be. There is no indication in Sub Section (5) of Section 80A of the Act as to why the restriction contained therein amounts to limiting the power of Assessing Officer but not that of Commissioner.” 7. In view of the statutory embargo, I have no hesitation to hold that the appellant is not entitled for deduction of 16,96,160/- u/s.80P(2)(d) in view of failure of appellant to file the return of income within the dues date specified u/s.139(1) of the Act. 8. In the result, the appeal filed by the appellant is dismissed. Order pronounced on this 16th day of October, 2024. Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 16th October, 2024. Satish ITA No.1772/PUN/2024 4 आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "