Jhaupathara Samabay Krishi Unnyan Samiti Ltd., Kolkata V. A.D.I.T. , CPC, Bengaluru, Bengaluru

ITA 146/KOL/2023

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The case involves Jhaupathara Samabay Krishi Unnyan Samiti Limited, a cooperative society, which appealed against the order of the Commissioner of Income Tax (Appeals) confirming the disallowance of a deduction claimed under section 80P of the Income Tax Act. The deduction of Rs.6,03,194 was initially denied by the Centralized Processing Centre (CPC) due to the belated filing of the income tax return for the assessment year 2019-20. The CPC's decision was based on the provisions of section 80AC, which disallows deductions if the return is not filed by the due date. However, the Tribunal noted that the specific provision allowing for such a disallowance under section 143(1)(a)(v) was amended after the relevant assessment year, and thus, the disallowance was not legally applicable.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129260 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-09-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 23-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 10AA; 143(1); 80P; 139(1)

Judgement Text

ITA No.146/KOL/2023(A.Y. 2019-20) Jhaupathara Samabay Krishi Unnyan Samiti Limited 1 IN THE INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA Before Dr. Manish Borad, Accountant Member & Shri Sonjoy Sarma, Judicial Member I.T.A. No. 146/KOL/2023 Assessment Year: 2019-2020 Jhaupathara Samabay Krishi Unnyan Samiti Limited,...........................Appellant Jhaupathara Champi, Mahishadal, Purba Medinipur-721628, West Bengal [PAN: AACAJ1612J] -Vs.- Assistant Director of Income Tax,............Respondent CPC, Bengaluru, 1 st Floor, Prestige Alpha No. 48/1, 48/2, Beratenaagrahara Begur, Hosur Road, Uttarahalli, Karnataka-560100 Appearances by: Shri Giridhar Dhelia, A.R., appeared on behalf of the assessee Shri Amuldeep Kaur, JCIT, appeared on behalf of the Revenue Date of concluding the hearing : September 05, 2023 Date of pronouncing the order : September 11, 2023 O R D E R Per Dr. Manish Borad, Accountant Member:- This appeal at the instance of assessee for assessment year 2019-20 is directed against the order of ld. Commissioner of Income Tax (Appeals), National ITA No.146/KOL/2023(A.Y. 2019-20) Jhaupathara Samabay Krishi Unnyan Samiti Limited 2 Faceless Appeal Centre (NFAC), Delhi, dated 30.12.2022, which is arising out of the order under section 143(1) of the Act on 28.05.2020 framed by ld. ADIT, CPC, Bangalore. 2. Though the assessee has raised six grounds of appeal, but the sole grievance of the assessee is against the finding of ld. CIT(Appeals) confirming the disallowance of deduction under section 80P of the Income Tax Act of Rs.6,03,194/-. We notice that the assessee is a Cooperative Society registered under the West Bengal Cooperative Society Act, 2006 and had filed its return of income belatedly for A.Y. 2019-20 on 12.03.2020 declaring a total income at ‘NIL’. The assessee has claimed deduction under section 80P of the Act at Rs.6,03,194/-. The case was processed under section 143(1)(a) of the Act by the Centralized Processing Centre, which denied the claim of deduction under section 80P of the Act on the ground that the return of income was not filed before the due date prescribed under section 139(1) of the Act. Therefore, in the light of provision of section 80AC of the Act, the deduction claimed under Chapter VI cannot be allowed. 3. We, however, notice that the processing of the income-tax return under section 143(1)(a) of the Act can be carried out after making certain adjustments. The impugned disallowance has been made under clause 143(1)(a)(v), which provides for the disallowance of deduction claimed under section 10(AA) or under ITA No.146/KOL/2023(A.Y. 2019-20) Jhaupathara Samabay Krishi Unnyan Samiti Limited 3 any other provisions of Chapter (6A) under the heading “C” - deduction in respect of certain income”, if the return is furnished beyond the due date specified under sub-section (1) of section 139. 4. We notice that an amendment was brought in Finance Act, 2021 w.e.f. 01.04.2021 in section 143(1)(a)(v) by virtue of which in place of section “10AA, 80IA, 80IAB, 80IB, 80IC, 80ID or section 80IC” has been replaced by the words Section 10AA or under any of the provisions of Chapter VIA under the heading “C”- deduction in respect of certain income”. It transpires that prior to 01.04.2021, there was no mechanism with the CPC under section 143(1)(a)(v) of the Act for making prima facie adjustment towards disallowance of deduction claimed under section 80P of the Act, if the return is furnished beyond the due date specified under section 139(1) of the Act. 5. Under these given facts and circumstances, since the year under appeal for A.Y. 2019-20 and the amendment has been brought into force under section 143(1)(a)(v) of the Act from 01.04.2021, even though the assessee has filed belated return, the disallowance under section 80P of the Act cannot be made as a prima facie adjustment under section 143(1)(a) of the Act and for making any such disallowance, the case of the assessee was required to be selected for scrutiny and then, the procedure need to be adopted in accordance with law. With the above observation, we set aside the finding of the ld. CIT(Appeals) and ITA No.146/KOL/2023(A.Y. 2019-20) Jhaupathara Samabay Krishi Unnyan Samiti Limited 4 delete the disallowance of deduction under section 80P of the Act at Rs.6,03,194/- . 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 11 th September, 2023. Sd/- Sd/- (Sonjoy Sarma) (Manish Borad) Judicial Member Accountant Member Kolkata, the 11 th day of September, 2023 Copies to :(1) Jhaupathara Samabay Krishi Unnyan Samiti Limited, Jhaupathara Champi, Mahishadal, Purba Medinipur-721628, West Bengal (2) Assistant Director of Income Tax, CPC, Bengaluru, 1 st Floor, Prestige Alpha No. 48/1, 48/2, Beratenaagrahara Begur, Hosur Road, Uttarahalli, Karnataka-560100 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax- ; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.