THE JANGALBERI CO-OPERATIVE AGRICULTURE SERVICE SOCIETY LTD,DISTT. HAMIRPUR V. INCOME TAX OFFICER, HAMIRPUR

ITA 1147/CHANDI/2024

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The case revolves around the disallowance of a deduction claimed under Section 80P(2) of the Income Tax Act by The Jangalberi Co-operative Agri Service Society Ltd. for the assessment year 2018-19. The deduction was initially denied by the Central Processing Centre (CPC), Bangalore during the processing of the return under Section 143(1) of the Income Tax Act, leading to a demand raised on the assessee. The assessee's subsequent application under Section 154 was rejected, and the appeal to the Commissioner of Income Tax (Appeals) was also dismissed. The Tribunal, referencing similar cases and the specific amendments to the Income Tax Act, concluded that the disallowance was not applicable for the assessment year in question, thus allowing the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712762 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2018-2019
• Other Referred Cases: Sathwin Co-operative Agriculture Service Society Ltd. Vs ITO, Hamirpur, Lanjani Co-operative Agriculture Service Society Ltd. Vs DCIT, CPC Bangalore
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: ALOK KRISHAN
• Section: 154

Judgement Text

" आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ , चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1147/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2018-19 The Jangalberi Co-operative Agri Service Society Ltd., VPO – Jangalberi, Teh - Sujanpur, Distt. – Hamirpur. बनाम VS The ITO, Hamirpur, (H.P.). èथायी लेखा सं./PAN /TAN No: AACAT9859R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Alok Krishan, CA राजèव कȧ ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr.DR तारȣख/Date of Hearing : 15.07.2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 30.07.2025 PHYSICAL HEARING आदेश/ORDER PER RAJPAL YADAV, VP The assessee is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax [in short ‘the CIT’] dated 25.09.2024 passed for assessment year 2018-19. 2. Though the assessee has taken six grounds of appeal but its grievance revolves around a single issue, namely, ld. CIT Printed from counselvise.com ITA 1147/CHD/2024 A.Y. 2018-19 2 (Appeals) has erred in confirming the order of CPC, Bangalore vide which deduction claimed u/s 80P(2) for assessment year 2018-19 was disallowed to the assessee while processing his return u/s 143(1) of the Income Tax Act and thereafter rejecting the application moved u/s 154 of the Income Tax Act. 3. The assessee has filed its Income Tax Return for assessment year 2018-19 on 04.03.2019 and declared ‘nil’ income after claiming deduction u/s 80P amounting to Rs.2,14,547/-. This return was processed u/s 143(1) by CPC Bangalore and the deduction claimed u/s 80P was denied to the assessee which resulted into an income of Rs.2,14,547/-. The CPC Bangalore has raised a demand of Rs.80,930/- vide its order passed u/s 143(1)(a)(ii) of the Act on 12.07.2019. Thereafter, assessee filed application u/s 154 of the Income Tax Act which was rejected by the AO vide order dated 08.09.2023. 4. The ld. CIT (Appeals) further dismissed the appeal of the assessee by way of impugned order. 5. With the assistance of ld. Representative, we have gone through the record carefully. The ld. counsel for the assessee Printed from counselvise.com ITA 1147/CHD/2024 A.Y. 2018-19 3 has submitted that issue in dispute is squarely covered by the orders of ITAT passed in ITA No. 54/CHD/2023 in the case of Sathwin Co-operative Agriculture Service Society Ltd. Vs ITO, Hamirpur and in ITA No. 332/CHD/2021 and other appeals in the case of Lanjani Co-operative Agriculture Service Society Ltd. Vs DCIT, CPC Bangalore. 5.1 On the other hand, ld. DR relied upon the orders of Revenue Authorities. 6. The submission of the assessee is that disallowance of Section 80P deduction u/s 143(1) has been enabled by Finance Act, 2018 which is applicable for assessment year 2019-20. The Section 80AC was inserted to the Act vide Finance Act 2018 and it restrict the eligibility for an assessee to claim deduction under Chapter VI-A in respect of certain incomes if return of income for any previous year relating to the assessment year commencing on or after 01.04.2018 is filed after due dates specified in Section 139(1) but the corresponding amendment for denial of such benefit while processing the return u/s 143(1)(a) has been made by Finance Act, 2021. Hence, such power could Printed from counselvise.com ITA 1147/CHD/2024 A.Y. 2018-19 4 have not been exercised by the CPC Bangalore before assessment year 2021-22. Thus, it is a mistake apparent on the record which ought to have been rectified by the ld. AO. The CIT (Appeals) has failed to appreciate correct proposition of law contemplated in these provisions. The Tribunal in both the cases has accepted this proposition and deleted the disallowances. 7. Respectfully following the orders of Co-ordinate Bench in view of the above position, we delete the disallowance. We allow the appeal and direct the AO to grant deduction claimed u/s 80P(2) of the Income Tax Act by the assessee. 8. In the result, appeal of the assessee is allowed. Order pronounced on 30th July,2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "