Income Tax Office , Ward -2, Wardha V. M/s Vivekanand Nagari Sahakari Pat Sanstha Maryadit , Wardha

ITA 191/NAG/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1581 (ITAT-NAGPUR)
• Duration Of Justice: 3 year(s) 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 03-10-2022
• Assessment Year: 2009-2010
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 148; 10AA; 10B; 80P; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, NAGPUR (AT e-Court, PUNE) BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA No.191/NAG/2019 निर्धारण वषा / Assessment Year : 2009-10 ITO, Ward-2, Wardha Vs. M/s. Vivekanand Nagari Sahakari Pat Sanstha Maryadit 22, Arvi Road, Gandhi Nagar, Wardha – 442001, Maharashtra PAN: AABAV6316Q Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the Revenue is directed against the order dated 08-05-2019 passed by the CIT(A)-2, Nagpur, in relation to the assessment year 2009-10. 2. The only issue raised herein is against the granting of deduction by the ld. CIT(A) u/s 80P of the Income-tax Act, 1961 Assessee by Shri Rajpal Singhai Revenue by Shri G.J. Ninawe Date of hearing 04-10-2022 Date of pronouncement 04-10-2022 ITA No.191/NAG/2019 Vivekanand Nagari Sah Pat Sanstha Maryadit 2 (hereinafter referred to as ‘the Act’) in contravention of the provisions of section 80A(5). 3. Succinctly, the facts of the case are that the assessee did not file its original return of income for the year under consideration. A notice u/s 148 was issued. In response, the assessee furnished its return declaring total income at Rs. Nil. The Assessing Officer (AO) denied the deduction u/s 80P and computed total income at Rs.4,97,233/-. It was so done on the ground that the deduction was prohibited otherwise than in original return. The ld. CIT(A) overturned the assessment order on this score, against which the Revenue has come up in appeal before the Tribunal. 4. I have heard both the sides and gone through the relevant material on record. It is seen as an admitted position, as also noted by the AO, that the assessee filed its return in response to the notice u/s 148 of the Act claiming deduction u/s 80P of the Act. The AO has also recorded similarly in para 3 of his order that the deduction u/s 80P was claimed in the return filed in response to the notice u/s 148. The only reason given by the AO for not granting ITA No.191/NAG/2019 Vivekanand Nagari Sah Pat Sanstha Maryadit 3 deduction is the prohibition contained in section 80A(5) of the Act. This section, in turn, provides that: `Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.—Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder.’ A bare perusal of the provision transpires that filing of return is an essential requirement for claiming deduction under the sections enshrined in part C of Chapter VI-A. Turning to the facts of the instant case, it is seen that the assessee did file the return claiming deduction u/s 80P of the Act. Even though the deduction was claimed in the return filed in response to notice u/s 148, still the substantive requirement of claiming the deduction in the return has been satisfied. The Legislature does not require, as has been canvassed by the AO, that the deduction must be claimed in a return filed u/s 139(1). The provision only mandates to make a claim ―in his return of income”, which is not qualified by the original return w.r.t. section 139(1) of the Act. Since the assessee claimed ITA No.191/NAG/2019 Vivekanand Nagari Sah Pat Sanstha Maryadit 4 deduction u/s 80P of the Act in his return of income, I am satisfied that the claim has rightly been allowed in the first appeal. The impugned order is countenanced to this extent. 5. In the result, the appeal is dismissed. Order pronounced in the Open Court on 4 th October, 2022. - Sd/- (R.S.SYAL) VICE PRESIDENT प ु णे Pune; ददिधांक Dated : 4 th October, 2022 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The CIT(A)-2, Nagpur 4. 5. The Pr.CIT-2, Nagpur विभागीय प्रविविवि, आयकर अपीलीय अविकरण, Nagpur / DR, Nagpur 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA No.191/NAG/2019 Vivekanand Nagari Sah Pat Sanstha Maryadit 5 Date 1. Draft dictated on 04-10-2022 Sr.PS 2. Draft placed before author 04-10-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *