Saridaspur Sambay Krishi Unnayan Samity Ltd., Egra, Purba Medinipur V. I.T.O., Ward-27(3), Haldia, Haldia

ITA 26/KOL/2023

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The case involves Saridaspur Sambay Krishi Unnayan Samity Ltd., a cooperative society, which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the denial of deduction under section 80P of the Income Tax Act for the Assessment Year 2019-20. The CPC had denied the deduction citing a delay in filing the return, stating the due date was August 31, 2019, whereas the return was filed on September 30, 2019. The Tribunal examined whether the CPC was justified in making a prima facie adjustment to deny the deduction and whether the return was filed within the correct due date.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 132668 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 10-07-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 10-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BRAJ KISHORE SINGH
• Keywords: Set aside
• Section: 80P; 250; 139(1)

Judgement Text

| आयकर अपीलीय अिधकरण ᭠यायपीठ, कोलकाता | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE DR. MANISH BORAD, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 26/Kol/2023 Assessment Year: 2019-2020 Saridaspur Sambay Krishi Unnayan Samity Ltd. P.O. Saridaspur, Egra Purba Medinipur - 721434 [PAN : AABAS9510P] Vs Income Tax Officer, Ward-27(3), Haldia अपीलाथᱮ/ (Appellant) ᮧ᭜ यथᱮ/ (Respondent) Assessee by : Shri Chirag Desai (on behalf of Miraj D. Shah, AR) Revenue by : Shri Braj Kishore Singh, JCIT, CIT D/R सुनवाई कᳱ तारीख/Date of Hearing : 11/07/2023 घोषणा कᳱ तारीख /Date of Pronouncement: 25/07/2023 आदेश/O R D E R PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The present appeal is directed at the instance of the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter the “ld. CIT(A)”) dated 30/11/2022, passed u/s 250 of the Income Tax Act, 1961 (“the Act’), for Assessment Year 2019-20. 2. The only issue for our consideration is that whether the ld. CIT(A) was justified in confirming the action of the CPC in denying the deduction under section 80P of the Act for delay in filing of the return of income. 3. We have heard rival contentions and perused the material placed before us. I.T.A. No. 26/Kol/2023 Assessment Year: 2019-2020 Saridaspur Sambay Krishi Unnayan Samity Ltd. 2 4. We notice that the assessee is a cooperative society and has claimed deduction under section 80P of the Act in the return filed for Assessment Year 2019-20. The assessee has filed the return of income on 30/09/2019 but CPC has sated the due date as 31/08/2019 and based on such observation, the CPC made prima facie adjustment u/s 143(1)(a)(v) of the Act by denying the deduction u/s 80P of the Act stating the reasons that the return of income was first furnished during the due date specified u/s 139(1) of the Act. 5. So far as the prima facie adjustment made, we fail to find any merit in such adjustment because, in our view, the CPC has travelled beyond its jurisdiction by denying the said deduction u/s 80P of the Act because power to make such adjustment were given to the CPC only by the Finance Act, 2021, w.e.f. 01/04/2021. Therefore, prior to 01/04/2021, the CPC had no power to deny deduction u/s 80P of the Act by way of a prima facie adjustment and the resort available was only through carrying out the scrutiny proceedings and, therefore, on this ground, the alleged addition deserves to be dismissed. 6. Further we notice that in the Grounds of appeal the assessee has stated that the accounts of the assessee were required to be audited and the due date of filing the income tax return was 30/09/2019 and not 31/08/2019 and if that is to be the case, then also the assessee I.T.A. No. 26/Kol/2023 Assessment Year: 2019-2020 Saridaspur Sambay Krishi Unnayan Samity Ltd. 3 deserves to succeed as the return has been filed within the prescribed time u/s 139(1) of the Act and under these circumstances also, the impugned disallowance is uncalled for. Hence, we set aside the order of the ld. CIT(A) and delete the disallowance. 7. In the result, appeal of the assessee is allowed as per the terms indicated hereinabove. Order pronounced in the Court on 25 th July, 2023 at Kolkata. Sd/- (DR. MANISH BORAD) ACCOUNTANT MEMBER Kolkata, Dated 25/07/2023 *SC SrPs आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant 2. ᮧ᭜यथᱮ / The Respondent 3. संबंिधत आयकर आयुᲦ / Concerned Pr. CIT 4. आयकर आयुᲦ)अपील (/ The CIT(A)- 5. िवभागीय ᮧितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाडᭅ फाईल /Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Kolkata