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The Tax PublishersITA No 220/Viz/2021
2022 TaxPub(DT) 5628 (Visak-Trib)INCOME TAX ACT 1961
Section 80P(2)(a)(i)
Where assessee had failed to file its return of income claiming the deduction prima facie no deduction is permissible under the Act and it was noticed from the submissions made by assessee that the return had been filed under section 139(4) for the assessment year 2017-18 on 5-3-2022. Since the return of income had been filed after completion of the assessment, the return should have been held as invalid hence, the claim made by assessee for deduction under section 80P(2)(a)(i) could not be held as an admissible deduction under the Act.
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Deduction under section 80P(2)(a)(i) - Co-operative society - Allowability of deduction - Return filed after completion of assessment
Assessee was a Primary Agricultural Cooperative Credit Society, which claimed deduction under section 80P. However, it had not filed its return of income for the assessment year 2017-18 as prescribed under section 139. Accordingly AO disallowed the deduction claimed under section 80P by treating it as business income of assessee. Assessee submitted that it had not filed any return of income for the assessment year 2017-18 under section 139(1) but had filed under section 139(4) and the return of income was manually filled and sent by speed post to CPC on 15-3-2022. Held: As per sub-section (5) of section 80A it was imperative to assessee to make a claim in its return of income for any deduction under any provisions of the Chapter under the heading 'C-Deduction in respect of certain incomes'. Since assessee had failed to file its return of income claiming the deduction prima facie no deduction was permissible under the Act. Similarly, assessee had filed return of income manually on 5-3-2022, which was sent by speed post to CPC on 15-3-2022. It was noticed from the submissions made by assessee that the return had been filed under section 139(4). As per section 139(4) of the Act “Any person who had not furnished a return within the time allowed to him under sub-section (1), may furnish the return for any previous year at any time before three months prior to the end of the relevant assessment year or before the completion of the assessment, whichever was earlier.” It was noted from the paper book that assessee had filed its return of income for the assessment 2017-18 on 5-3-2022 under section 139(4). Since the return of income had been filed after completion of the assessment, the return should have been held as invalid and hence, the claim made by the assessee for deduction under section 80P(2)(a)(i) could not be held as an admissible deduction under the Act, as assessee had never filed its return of income.
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2017-18
IN THE ITAT, VISAKHAPATNAM BENCH
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