KOZHIKODE TALUK KALLU CHETHU VYAVASAYA THOZHILALI SAHAKARANA SANGHAM,KOZHIKODE V. THE ASSISTANT COMMISSIONER, CIRCLE -1(1) & TPS, KOZHIKODE

ITA 654/COCH/2024

AI Insights

The case involves the Kozhikode Taluk Kalluchethu Vyavasaya Tozhilali Shhakarana Sangam, a cooperative society, which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2019-20. The society had filed a return claiming a deduction under section 80P(2)(i)(a) of the Income Tax Act, 1961, which was disallowed by the CPC during the processing of the return under section 143(1), citing that the return was not filed within the due date prescribed under section 139(1). The CIT(A) upheld this decision, referencing section 80AC(ii) and a decision by the Hon'ble Madras High Court. The Tribunal, however, found that the CPC did not have the authority to disallow the deduction under section 80P for the specified assessment year, leading to the allowance of the appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 31329 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 24-07-2024
• Other Referred Cases: Veerappampalayam Primary Agricultural Co-operative Credit Society Ltd. vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: LEKSHMI MENON
• Keywords: Co-operative Credit Society
• Section: 143(1); 139(1); 80P

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member ITA No. 654/Coch/2024 (Assessment Year: 2019-20) Kozhikode Taluk Kalluchethu Vyavasaya Tozhilali Shhakarana Sangam, 36/1871-1874 T. Ayyapan Smaraka Mandiram Anni Hall Road, Kozhikode 673002 [PAN: AACAK9045Q] vs. DCIT, Circle -1(1) & TPS Kozhikode (Appellant) (Respondent) Appellant by: Ms. Lekshmi Menon, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 29.10.2024 Date of Pronouncement: 18.11.2024 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 28.06.2024 for Assessment Year (AY) 2019-20. 2. Brief facts of the case are that the assessee is a co-operative society and filed return of income for AY 2019-20 on 14.03.2020disclosing an income of Rs. 11,49,948/- and claimed deduction u/s. 80P(2)(i)(a) of the Income Tax Act, 1961 (the Act) at Rs. 1,57,445/- . The said return of income was processed u/s. 143(1) of the Act vide intimation dated 14.03.2020 disallowing the claim for deduction u/s. 80P of Rs. 1,57,445/- on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act. 2 ITA No. 654/Coch/2024 Kozhikode Taluk Kalluchethu Vyavasaya Tozhilali Shhakarana Sangam 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order placing reliance of the provisions of section 80AC(ii) of the Act and also on the decision of the Hon'ble Madras High Court in the case of Veerappampalayam Primary Agricultural Co-operative Credit Society Ltd. vs. DCIT (07.04.2021) confirmed the action of the AO. 4. Being aggrieved, the assessee is in appeal before the Tribunal. It is submitted before me that the CPC ought not have disallowed the claim for deduction u/s. 80P of the Act. 5. The learned Sr. DR, on the other hand, submits that no interference is called for in the orders of the lower authorities. 6. I have heard the rival contentions of both the parties and perused the material available on record. The short issue that arises for my consideration is whether or not the action of the CPC in disallowing the claim for deduction u/s. 80P is justified. The CPC while processing the return of income could only make such adjustments as specified under clauses (i) to (v) of section 143(1). It is only by Finance Act, 2021 w.e.f. 01.04.2021 the parliament empowered the CPC to make adjustment u/s. 80P under sub-clauses (1) to (v) of section 143(1) of the Act. Since the year under consideration before me is only AY 2019-20 the CPC has no power to make such adjustment when the legislative intent is clear. It is beyond the scope of the power of CPC making adjustment u/s. 80P while processing the return of income u/s. 143(1) of the Act. Therefore, I direct CPC/AO to amend the intimation u/s. 143(1) by deleting the adjustment made by disallowing the claim of deduction u/s. 80P of the Act. 3 ITA No. 654/Coch/2024 Kozhikode Taluk Kalluchethu Vyavasaya Tozhilali Shhakarana Sangam 7. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open court on 18th November, 2024 Sd/- (Inturi Rama Rao) Accountant Member Cochin, Dated: 18th November, 2024 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "