Appeal details
Counselvise Citation
[2022] 105 COUNSELVISE.COM (IT) 0264 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 month(s) 14 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
18-07-2022
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2012-2013
Appeal Filed On
04-04-2022
Judgement Text
THE INCOME TAX APPELLATE TRIBUNAL “SMC” Bench, Mumbai Shri B.R. Baskaran (AM) I.T.A. No. 612/Mum/2022 (A.Y. 2012-13) I.T.A. No. 613/Mum/2022 (A.Y. 2013-14) I.T.A. No. 614/Mum/2022 (A.Y. 2014-15) Meghana Apartment Cooperative Housing Society Ltd. Dixit Cross Road No. 1 Vile Parle East Mumbai-400 057. PAN : AABAM7586M Vs. ITO-25(3)(1) Room No. 233 2 nd Floor Kautilya Bhavan C-41 to C-43 G-Block, BKC Mumbai-400 051. (Appellant) (Respondent) Assessee by Shri Dharan Gandhi Department by Ms. Naina Krishnakumar Date of Hearing 20.07.2022 Date of Pronouncement 20.07.2022 O R D E R The assessee has filed these appeals challenging the orders passed by learned CIT(A)-National Faceless Centre, Delhi and they relate to A.Y. 2012-13 to 2014-15. All these appeals were heard together and are being disposed of by this common order, since the issue urged in these appeals is identical in nature. 2. In all these appeals, the assessee is aggrieved by the decision of learned CIT(A) in confirming the disallowance of deduction claimed by the assessee under section 80P of the I.T. Act. 3. The assessee is a cooperative housing society. In all the three years under consideration, the returns of income have been filed by the assessee belatedly i.e. beyond the due date prescribed under section 139(1) of the Act, details of which are given below :- Meghana Apartment Cooperative Housing Society Ltd. 2 Assessment year Due date Date of filing 2012-13 31.8.2012 29.3.2014 2013-14 5.8.2013 10.1.2015 2014-15 31.7.2014 10.1.2015 The returns of income filed by the assessee for the above said three years were processed under section 143(1) of the Act by the CPC, wherein deduction claimed by the assessee under section 80P of the Act was disallowed. The Learned AR submitted that intimation issued under section 143(1) of the Act did not mention any reason for disallowing claim for deduction under section 80P of the Act. In the appellate proceedings learned CIT(A) referred to the provisions of section 80A(5) of the Act and has stated that the assessee has filed returns of income belatedly. Accordingly, the learned CIT(A) has confirmed the rejection of claim for deduction u/s 80P of the Act made by the Assessing Officer in the intimation issued under section 143(1) of the Act. 4. The Learned AR submitted that the provisions of section 80A(5) barring claim of deduction under the heading “C – Deductions in respect of certain incomes” under Chapter VIA shall apply only in cases where assessee fails to make a claim in his return of income, i.e., the said provision will not be applicable to the assessee herein because the assessee has made a claim for deduction under section 80P of the Act in the returns of income filed by it. When learned DR pointed out that the provisions of section 80AC shall be applicable to the facts of the present case, the learned AR invited our attention to the provisions of section 80AC and submitted that deduction under the heading “C – Deductions in respect of certain incomes” under Chapter VIA has been made applicable in section 80AC w.e.f. 1 st day of April, 2018, meaning thereby, provisions of section 80AC shall apply to the assessee only w.e.f. assessment year 2018-19. Accordingly, he submitted that neither the provisions of section 80A(5) nor provisions of section 80AC are applicable to the assessee herein and hence, learned CIT(A) was not right in law in confirming the disallowance of deduction claimed under section 80P of the Act. Meghana Apartment Cooperative Housing Society Ltd. 3 5. The Learned AR further submitted that impugned adjustment made by way of disallowance of claim u/s 80P of the Act is beyond the powers of the Assessing Officer during the years under consideration. The Ld A.R invited our attention to the provisions of sec.143(1)(a) of the Act and submitted that the power to disallow claimed under section 80P has been given to the Assessing Officer only w.e.f. 1.4.2021 by the Finance Act, 2021. Prior thereto, the Assessing Officer could disallow deductions claimed under section 10AA, 80IA, 80IAB, 80IB, 80IC, 80ID & 80IE only. Accordingly, learned AR submitted that the Assessing Officer was not empowered to disallow claim under section 80P of the Act for the years under consideration, while processing returns under section 143(1) of the Act. 6. On the contrary, learned DR supported the orders passed by learned CIT(A). 7. I have heard rival contentions and perused the record. Provisions of section 80A(5) reads as udder :- “80A(5) 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.” As per sec. 80A(5), if an assessee has not made a claim for deduction under any of the sections mentioned in sec. 80A(5) of the Act, then such deduction shall not be allowed to him. As rightly pointed out by learned AR, the provisions of section 80A(5) would be applicable only if an assessee fails to make a claim for deduction under the heading “C – Deductions in respect of certain incomes” under Chapter VIA, which includes section 80P of the Act. In the instant cases, there is no dispute that the assessee has made a claim for deduction u/s 80P of the Act. Hence the provisions of sec. 80A(5) are not applicable to the assessee. Meghana Apartment Cooperative Housing Society Ltd. 4 8. I also noticed that the provisions of section 80AC which bars claiming of deduction if the return of income was not filed before the due date specified under section 139(1) of the Act, was made applicable to the deduction under the heading “C – Deductions in respect of certain incomes” under Chapter VIA of the Act w.e.f. 1 st day of April, 2018. Hence, for all the three years under consideration, provisions of section 80AC are also not applicable to the assessee, since all these three years prior to assessment year 2018-19. 9. The Learned AR also brought to my notice that the power to make disallowance of deduction under the heading “C – Deductions in respect of certain incomes” under Chapter VIA, while processing return under section 143(1) of the Act has been given to the Assessing Officer only by the Finance Act 2021 w.e.f. 1.4.2021. Prior to that, there was no power available with the AO to disallow the claim made under the heading “C – Deductions in respect of certain incomes” under Chapter VIA. 10. Hence, for all reasoning mentioned above, I am of the view that the Assessing Officer could not have disallowed the deduction claimed by the assessee under section 80P of the Act in all the three years under consideration, while processing the returns of income u/s 143(1) of the Act. Accordingly, I set aside the orders passed by Ld CIT(A) on this issue in all the three years under consideration and direct the AO to delete the disallowance of claim for deduction made u/s 80P of the Act. 11. In the result, all the three appeals filed by the assessee are allowed. Order pronounced in the open court on 20.07.2022. Sd/- (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai; Dated : 20/07/2022 Meghana Apartment Cooperative Housing Society Ltd. 5 Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. The CIT(A) 4. CIT 5. DR, ITAT, Mumbai 6. Guard File. BY ORDER, //True Copy// (Assistant Registrar) PS ITAT, Mumbai
