THE KANTHALLORE SERVICE CO-OPERATIVE BANK LTD,IDUKKI V. ITO , WARD-1 & TPS, THODUPUZHA

ITA 552/COCH/2024

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The case involves Kanthallor Service Co-op. Bank Ltd., a cooperative society engaged in providing credit facilities, which filed an appeal against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2019-20. The society had claimed a deduction under section 80P of the Income Tax Act, 1961, which was disallowed by the CPC during the processing of the return, citing that the return was not filed within the due date. The CIT(A) upheld this decision, referencing section 80AC(2) and a decision from the Mumbai Tribunal. However, the Tribunal found that the CPC's action to disallow the deduction under section 80P was beyond its legislative authority for the specified assessment year.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 474687 (ITAT-COCHIN)
• Duration Of Justice: 5 month(s) 12 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: 05-06-2024
• Other Referred Cases: Prashant Projects Ltd. vs. DCIT [2013] 37 taxmann.com 137
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• 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. 552/Coch/2024 (Assessment Year: 2019-20) Kanthallor Service Co-op. Bank Ltd. Navnit Building Kanthaloor P.O., Idukki 685620 [PAN: AACAK3476H] vs. The Income Tax Officer Ward - 1 &TPS Thodupuzha (Appellant) (Respondent) Appellant by: ------- None ------- 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 06.01.2023 for Assessment Year (AY) 2019-20. 2. Brief facts of the case are that the assessee is a co-operative society registered under the Kerala State Co-operative Societies Act ad is engaged in providing credit facilities to its members. The assessee filed return of income for AY 2019-20 on 14.07.2020disclosing an income of Rs. 47,75,569/- claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) at Rs. 47,75,569/- . 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. 47,75,569/- 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. 552/Coch/2024 Kanthallor Service Co-op. Bank Ltd. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order placing reliance of the provisions of section 80AC(2) of the Act and also on the decision of the Mumbai Tribunal in the case Prashant Projects Ltd. vs. DCIT [2013] 37 taxmann.com 137 dismissed the appeal of the assessee. 4. Being aggrieved, the assessee is in appeal before the Tribunal. When the appeal was called nobody attended despite due service of notice of hearing. Therefore after hearing the learned Sr. DR, I proceeded to dispose of the appeal as under. 5. 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). It is only by Finance Act, 2021 w.e.f. 01.04.2021 the parliament had 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 the CPC 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. 6. 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. 3 ITA No. 552/Coch/2024 Kanthallor Service Co-op. Bank Ltd. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "