KRISHAK SEVA SAHKARI SAMITI LIMITED MITLI,MITLI V. INCOME TAX OFFICER, BARAUT, BARAUT

ITA 5137/DEL/2024

AI Insights

The case involves Krishak Seva Sahkari Samiti Limited, which appealed against the orders passed by the lower tax authorities disallowing deductions claimed under Section 80P of the Income Tax Act for the Assessment Years 2019-20 and 2020-21. The disallowance was based on Section 143(1)(a)(v), a provision introduced by the Finance Act, 2021, which was argued not to be applicable to the years under appeal. The Tribunal, referencing a similar case decided by a Co-ordinate Bench, found in favor of the assessee, leading to the quashing of the disallowance and allowing the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707178 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2019-2020
• Appeal Filed On: 07-11-2024
• Other Referred Cases: The Defence Accounts Co-operative Credit Society Ltd. Vs. ITO in ITA No. 1112/Del/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: OM PRAKASH
• Assessee Lawyers: DEVASHISH BHADAURIA
• Keywords: Retrospective amendment; Co-operative Credit Society
• Section: 154

Judgement Text

"P a g e | 1 ITA Nos. 5137 & 5138/Del/2024 Krishak Seva Sahkari Samiti Limited (AYs: 2019-20 & 2020-21) THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER & SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA Nos.5137 & 5138/Del/2024 (Assessment Years: 2019-20 & 2020-21) Krishak Seva Sahkari Samiti Limited, Mitli Distt. Baghpat- 250611 Uttar Pradesh Vs. ITO, Baraut Uttar Pradesh 250611 \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No: AABAK5991L Appellant .. Respondent Appellant by : Sh. Devashish Bhadauria, Adv (through VC) Respondent by : Sh. Om Prakash Sr. DR Date of Hearing 08.07.2025 Date of Pronouncement 08.07.2025 O R D E R PER BENCH: Both the appeals filed by the assessee are directed against the order dated 12.06.2024 & 13.06.2024 passed by the Ld. Addl/JCIT(A)-3 Bengaluru, arising out of the common Intimation Order dated 11.01.2022 passed by the ADIT, CPC, Bengaluru under Section 154 r.w.s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Years 2019-20 & 2020-21. P a g e | 2 ITA Nos. 5137 & 5138/Del/2024 Krishak Seva Sahkari Samiti Limited (AYs: 2019-20 & 2020-21) ITA No.5137/Del/2024 for Assessment Year: 2019-20: 2. The matter relates to disallowance of claim under Section 80P(2)(a)(i) to the tune of Rs.8,22,193/- made by CPC in turn confirmed by the First Appellate Authority invoking the provision of Section 143(1)(a)(v) of the Act. 3. At the time of hearing of the instant appeal the Ld. Counsel appearing for the assessee submitted before us that this particular provision of law envisaged in Section 143(1)(a)(v) has been introduced by the Finance Act, 2021 w.e.f 01.04.2021 for Assessment Year 2021-22 onwards and not for Assessment Year 2019-20 as before us. In that view of the matter the disallowance of deduction claimed by the assessee under Section 80P of the Act has not sustainable in the eyes of law. In support of argument he has further relied upon the judgment passed by the Co-ordinate Bench in the case of The Defence Accounts Co-operative Credit Society Ltd. Vs. ITO in ITA No. 1112/Del/2024 for Assessment Year 2019-20 a copy whereof has also been annexed to the paper book filed before us. In fact, considering the identical facts of the matter the Coordinate Bench has been pleased to quash the order passed by the authorities below. On the contrary, the Ld. DR relied upon the order passed by the authorities below. 4. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record including the order passed by the Coordinate Bench in the identical facts P a g e | 3 ITA Nos. 5137 & 5138/Del/2024 Krishak Seva Sahkari Samiti Limited (AYs: 2019-20 & 2020-21) and circumstances of the matter. In fact, under Section 80P deduction claimed to the tune of Rs.20,15,988/- was disallowed considering the provision of Section 143(1)(a)(v) of the Act. Having regard to the admitted position that this particular section has been introduced by the Finance Act, 2021 and w.e.f 1.04.2021 having no retrospective effect the Coordinate Bench has been pleased to quash the order passed by the authorities below. 5. Thus, having heard the Ld. Counsels appearing for the parties and having regard to the facts and circumstances of the matter and the order passed by the Coordinate Bench and the provision of law which has been introduced by the Finance Act, 2021 with effect from 01.04.2021 we are of the considered opinion that the impugned addition invoking Section 143(a)(v)(i) of the Act is not sustainable in the eyes of law and therefore, the order impugned is quashed. The appeal of the assessee is allowed. 6. Having regard to the identical facts of the matter in ITA No. 5138/Del/2024 for Assessment Year 2020-21 this observation made by us in allowing the appeal preferred by the assessee as aforesaid is applied mutatis mutandis. This appeal preferred by the assessee is also allowed. 7. Both the appeals preferred by the assessee are allowed. Order pronounced in the open court on 08.07.2025 Sd/- (Avdhesh Kumar Mishra) Sd/- (Madhumita Roy) ACCOUNTANT MEMBER JUDICIAL MEMBER [ Dated 08.07.2025 Rohit, Sr. PS P a g e | 4 ITA Nos. 5137 & 5138/Del/2024 Krishak Seva Sahkari Samiti Limited (AYs: 2019-20 & 2020-21) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "