Daivagna Credit Co-Operative Society Limited, Davangere V. Deputy Commissioner Of Income Tax, CPC, Bangalore

ITA 542/BANG/2022

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4938 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Appeal Filed On: 04-07-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 143(3); 143(1); 80P; 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES “C”, BANGALORE Before Shri George George K, JM & Ms.Padmavathy S, AM ITA No.542/Bang/2022 : Asst.Year 2018-2019 Daivagna Credit Co-operative Society Limited, No.14 Vinayaka Plaza Vajayalakshmi Road Davanagere – 577 001. PAN : AABAD 1582E v. The Deputy Commissioner of Income-tax, CPC, Bengaluru. (Appellant) (Respondent) Appellant by : Sri.Pranavkrishna, Advocate Respondent by : Smt.Priyadarshini Baseganni, Addl.CIT-DR Date of Hearing : 21.09.2022 Date of Pronouncement : 21.09.2022 O R D E R Per George George K, JM : This appeal at the instance of the assessee is directed against CIT(A)’s order dated 18.05.2022. The relevant assessment year is 2018-2019. 2. The solitary issue argued is whether the CIT(A) is justified in confirming the disallowance u/s 80P of the I.T.Act made by the Assessing Officer, Centralized Processing Centre, u/s 143(1) of the I.T.Act for the technical default in not filing the return of income u/s 139(1) of the I.T.Act. 3. The brief facts of the case are as follows: The assessee is a Co-operative Society, engaged in the business of providing credit facilities to its members. For the assessment year 2017-2018, the return of income was filed ITA No.542/Bang/2022. M/s.Daivagna Credit Co-op Society Limited. 2 on 25.03.2019 declaring `Nil’ income after claiming deduction u/s 80P of the I.T.Act amounting to Rs.60,97,090. The AO, CPC, passed an intimation u/s 143(1) of the I.T.Act (intimation dated 29.06.2019), wherein the assessee’s total income was determined at Rs.60,97,090. The assessee’s claim of deduction u/s 80P of the I.T.Act amounting to Rs.60,97,090 was denied for the reason that the return of income was not filed within the due date prescribed u/s 139(1) of the I.T.Act. 4. Aggrieved by the intimation passed u/s 143(1) of the I.T.Act, the assessee preferred an appeal before the first appellate authority. The CIT(A) rejected the contentions raised and dismissed the appeal of the assessee. 5. Aggrieved by the order of the CIT(A), the assessee has filed the present appeal before the Tribunal. The assessee has filed two sets of paper book comprising of 117 pages inter alia enclosing therein the case laws relied on, written submissions filed before the lower authorities, copy of the acknowledgment of the income-tax return filed, etc. The learned AR submitted that for the relevant assessment year, namely, A.Y. 2018- 2019, the AO, CPC, could not have made an adjustment u/s 143(1) of the I.T.Act. It is submitted that section 143(1)(a)(v) of the I.T.Act has been amended vide Finance Act, 2021 to give effect to section 80AC of the I.T.Act enabling the AO, CPC to disallow deduction u/s 80P of the I.T.Act (when return of income was not filed within the due date u/s 139(1) of the ITA No.542/Bang/2022. M/s.Daivagna Credit Co-op Society Limited. 3 I.T.Act). In this context, the learned AR relied on the order of the Chandigarh Bench of the Tribunal in the case of The Lanjani Co-operative Agri Service Society Ltd. & Others v. The DCIT in ITA No.332/Chd/2021 (order dated 30.08.2022). However, the learned AR fairly submitted that deduction claimed u/s 80P(2)(a)(i) of the I.T.Act for an identical amount was also denied in the assessment order completed u/s 143(3) of the I.T.Act. The learned AR placed on record copy of the assessment order completed u/s 143(3) of the I.T.Act. It was stated that as against the assessment order completed u/s 143(3) of the I.T.Act, an appeal is pending adjudication before the first appellate authority. 6. The learned Departmental Representative supported the orders of the AO,CPC and the CIT(A). Further, the learned DR submitted that since the adjustment made u/s 143(1) of the I.T.Act, was also subjected to disallowance in assessment completed u/s 143(3) of the I.T.Act, the issue raised in this appeal has been infructuous. 7. We have heard rival submissions and perused the material on record. The claim of the assessee amounting to Rs.60,97,090 was disallowed in the impugned intimation u/s 143(1) of the I.T.Act. We notice that in the instant case, the scrutiny assessment has been completed u/s 143(3) of the I.T.Act vide order dated 26.02.2021. On perusal of the said scrutiny assessment, we notice that the claim of deduction u/s 80P of the I.T.Act was also denied in the said scrutiny ITA No.542/Bang/2022. M/s.Daivagna Credit Co-op Society Limited. 4 assessment. Since the claim of deduction u/s 80P of the I.T.Act has been denied u/s 143(3) of the I.T.Act, the addition / adjustment made u/s 143(1) of the I.T.Act gets subsumed into the scrutiny assessment order. Therefore, the issue raised in this appeal is only academic and is infructuous as rightly pointed out by the learned DR. Therefore, this appeal of the assessee is dismissed as infructuous. 8. In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 21 st day of September, 2022. Sd/- (Padmavathy S) Sd/- (George George K) ACCOUNTANT MEMBER JUDICIAL MEMBER Bangalore; Dated : 21 st September, 2022. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-NFAC Delhi 4. The Pr.CIT, Bengaluru. 5. The DR, ITAT, Bengaluru. 6. Guard File. Asst.Registrar/ITAT, Bangalore