Shrimant Jaysingrao Ghatge Nagari Sahakari Pat Sanstha Ltd, Kolhapur V. Income Tax Officer, Ward-1(5), Kolhapur, Kolhapur

ITA 488/PUN/2023

AI Insights

The case involves Shrimant Jaysingrao Ghatge Nagari Sahakari Pat Sanstha Ltd., a cooperative credit society, which appealed against the order of the CIT(A) that denied them a deduction under section 80P of the Income-tax Act, 1961 for the assessment year 2018-19. The deduction was initially disallowed because the return was not filed by the due date under section 139(1) of the Act. However, the Tribunal found that the amendment to section 143(1)(a)(v) introduced by the Finance Act, 2021, which required the return to be filed by the due date for deductions to be allowed, was not applicable to the assessment year in question. Consequently, the Tribunal directed that the deduction under section 80P be granted as claimed by the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124144 (ITAT-PUNE)
• Duration Of Justice: 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 17-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 25-04-2023
• Other Referred Cases: Finolex Industries Ltd. Employees Co-op Credit Society Ltd. Vs. ITO (ITA No.76/PUN/2023)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1); 139(4)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.488/PUN/2023 नधा रण वष / Assessment Year : 2018-19 Shrimant Jaysingrao Ghatge Nagari Sahakari Pat Sanstha Ltd., A/P. Sidhanerli, Tal. Kagal, Kolhapur - 416232, Maharashtra PAN : AAOAS7977D Vs. ITO, Ward-1(5), Kolhapur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP: This appeal by the assessee arises out of the order dated 28-02-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2018-19. 2. The only issue raised in this appeal is against the denial of deduction u/s.80P of the Act. 3. Briefly stated, the facts of the case, are that the assessee is a cooperative credit society engaged in providing credit facilities to its members. The return of income was filed u/s.139(4) of the Act. Such Assessee by : Shri Pramod Shingte Revenue by : Shri Suresh Gaikwad Date of hearing 18-05-2023 Date of pronouncement 19-05-2023 ITA No. 488/PUN/2023 Shrimant Jaysingrao Ghatge Nagari Sahakari Patsanstha Ltd., 2 return was processed u/s.143(1) and the amount of deduction claimed by the assessee u/s.80P was disallowed on the ground that the return was not filed as per the due date u/s.139(1) of the Act. The ld. CIT(A) did not accept the assessee’s contention and held section 80AC to be applicable as per which deduction can be allowed only on the filing of return u/s.139(1). Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. I have heard both the sides and gone through the relevant material on record. The assessee’s return filed u/s 139(4) of the Act was processed u/s.143(1). Here, it is relevant to mention that the Finance Act, 2021 carried out amendment to section 143(1)(a)(v) w.e.f. 01-04-2021 stipulating the deduction to be allowed only if the return was filed by the due date specified u/s.139(1) of the Act. Prior to this, there was no such requirement of filing the return u/s.139(1) so as to escape from the rigour of section 143(1)(a)(v) of the Act. The assessment year under consideration is 2018-19 and hence, the amended provision is not applicable. I, therefore, hold that though the assessee contravened section 80AC but because of the processing of the return u/s.143(1), cannot be saddled with the disallowance of ITA No. 488/PUN/2023 Shrimant Jaysingrao Ghatge Nagari Sahakari Patsanstha Ltd., 3 deduction u/s.80P on the ground of filing of the return u/s.139(1) of the Act. Similar view has been taken by the Pune Benches of the Tribunal in Finolex Industries Ltd. Employees Co-op Credit Society Ltd. Vs. ITO (ITA No.76/PUN/2023), a copy of such order dated 03-04-2023 has been placed on record. Respectfully following the precedent, I overturn the impugned order on this issue and direct to grant the deduction u/s.80P as claimed by the assessee in the processing of the return u/s 143(1) of the Act. 5. In the result, the appeal is allowed. Order pronounced in the Open Court on 19 th May, 2023. Sd/- ( R.S.SYAL) VICE PRESIDENT पुणे Pune; िदनांक Dated : 19 th May, 2023 सतीश ITA No. 488/PUN/2023 Shrimant Jaysingrao Ghatge Nagari Sahakari Patsanstha Ltd., 4 आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. थ / The Respondent 3. 4. 5. The Pr.CIT concerned DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 18-05-2023 Sr.PS 2. Draft placed before author 19-05-2023 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. *