PASCHIM PUTIARY COOPERATIVE CREDIT SOCIETY LTD., ,KOLKATA V. ITO, WARD 25(1), , KOLKATA

ITA 344/KOL/2025

AI Insights

The case involves Paschim Putiary Cooperative Credit Society Samity Limited, the appellant, contesting the disallowance of a deduction under section 80P of the Income Tax Act, 1961, for the assessment year 2018-19. The disallowance was initially made by the Deputy Director of Income Tax, CPC, due to the belated filing of the income tax return beyond the due date of August 31, 2018. The CIT(A) upheld this disallowance, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal's decision hinged on the interpretation of the powers conferred to the Assessing Officer under section 143(1)(a)(v) of the Act, which were not applicable to the assessment year in question as the relevant amendment was introduced later.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315392 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 139

Judgement Text

" आयकर अपीलȣय अͬधकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Rakesh Mishra, Accountant Member I.T.A. No.344/Kol/2025 Assessment Year: 2018-19 Paschim Putiary Cooperative Credit Society Samity Limited...….……….Appellant 328A, Nalini Bhawan, Banerjee Para Road, Kudghat, Kol-41. [PAN: AABAP7929B] vs. ITO, Ward-25(1), Kolkata.………….....................……........……...…..…..Respondent Appearances by: Shri G. Banerjee, AR, appeared on behalf of the assessee. Shri Archana Gupta, Addl. CIT, Sr. DR, appeared on behalf of the Revenue. Date of concluding the hearing : May 14, 2025 Date of pronouncing the order : May 16, 2025 ORDER Per Sonjoy Sarma, Judicial Member: This appeal of the assessee for the assessment year 2018-19 is directed against the order dated 26.03.2024 passed by the ld. Commissioner of Income-tax, Appeals, NFAC, Delhi [hereinafter referred to as ‘the ‘ld. CIT(A)’]. 2. Brief facts of the case are that the assessee is a Co-operative Society registered under West Bengal Co-operative Societies Act, 2013 as amended up to date. Assessee filed its income tax return u/s 139 of the Act for A.Y. 2018-19 on 30.03.2019. The return of the assessee was processed u/s 143(1) of the Income Tax Act, 1961 and thereafter the assessee received an intimation on 25.06.2019 in which an amount of Rs.3,50,338/- was disallowed by Deputy Director of Income Tax, CPC by disallowing the statutory deduction u/s 80P of the Act for non- submission of income tax return within due date i.e. 31.08.2018. I.T.A. No.344/Kol/2025 Assessment Year: 2018-19 Paschim Putiary Cooperative Credit Society Samity Limited 2 3. Dissatisfied with the above order, the assessee is in appeal before authorities below. However, the appeal of the assessee was dismissed by NFAC, Delhi vide order dated 26.03.2024. At the time of hearing, the ld. AR submitted that the assessee is a co-operative society registered under West Bengal Cooperative Societies Act, 2013 amended upto date. For the assessment year under consideration, the return of income has been filed by the assessee belatedly that is beyond the date prescribed u/s 139(1) of the Act. Details of which are given below: AY Due date Date of filing 2018-19 31.08.2018 30.03.2019 4. The return of the assessee for the year under consideration was processed u/s 143(1) of the Act by the CPC wherein the deduction claimed by the assessee u/s 80P of the Act was disallowed. In the appellate proceedings, the ld. CIT(A) stated that assessee has filed return of income belatedly and accordingly, the ld. CIT(A) confirmed the rejection of claim for deduction u/s 80P of the Act made by the AO in the intimation issued u/s 143(1) of the Act. In this regard, the ld. AR submitted that impugned adjustment made by way of disallowance of claim u/s 80P of the Act is beyond power of Assessing Officer during the year under consideration. The ld. AR invited our attention to the provisions of section 143(1)(a)(v) of the Act and submitted that the power to disallow the claim u/s 80P has been given to the AO w.e.f. 01.04.2021 by Finance Act, 2021 relevant to A.Y. 2021-22. Accordingly, the ld. AR submitted that the CPC was not empowered to disallow the claim of the assessee u/s 80P of the Act for the year under consideration while processing return u/s 143(1) of the Act. On the contrary, the ld. DR supported the order passed by the ld. CIT(A). I.T.A. No.344/Kol/2025 Assessment Year: 2018-19 Paschim Putiary Cooperative Credit Society Samity Limited 3 5. We have heard rival contention of the parties and perused the material available on record in the instant case. There is no dispute that the assessee had made claim u/s 80P of the Act. The ld. AR also brought to our notice that the power to make disallowance of deduction under the head “C – deduction in respect of certain incomes” under Chapter VIA while processing the return u/s 143(1) of the Act has been given to the AO by Finance Act, 2021 w.e.f. 01.04.2021 relevant to A.Y. 2021-22. This provision was introduced from A.Y. 2021-22 but the same cannot be given effect to instant assessment year 2018-19. Therefore, there was no power available with CPC to disallow the claim made under “C – deduction in respect of certain income” under chapter VIA. Hence, for all the reasoning mentioned above, we are of the view that the CPC could not have disallowed the deduction claimed by the assessee u/s 80P of the Act for the assessment year under consideration while processing the return of income u/s 143(1) of the Act. Accordingly, we set aside the order passed by the ld. CIT(A) on this issue for the assessment year under consideration and direct the CPC/AO to delete the disallowance of claim for deduction made u/s 80P of the Act. 6. In the result, the appeal of the assessee is allowed. Kolkata, the 16th May, 2025. Sd/- Sd/- [Rakesh Mishra] [Sonjoy Sarma] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 16.05.2025. RS I.T.A. No.344/Kol/2025 Assessment Year: 2018-19 Paschim Putiary Cooperative Credit Society Samity Limited 4 Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches "