INCOME TAX ACT, 1961

Section 80P

Deduction under section 80P - Admissibility - Return not filed within due date under section 139(1) -

Assessee-society filed return of income for relevant assessment year claiming deduction under section 80P under Chapter VI-A. CPC while processing the return disallowed the deduction claimed on the ground that the return was not filed within the due date. Assessee submitted that adjustment for disallowance under section 80P was outside the scope of section 143(1). Assessee further submitted that the deduction under section 80P could not be denied for the sole reason that the return was filed beyond the due date under section 139(1) as the return was filed within the extended time under section 139(4), which was an extension of section 139(1). Assessee further submitted that there was no provision incorporated under section 143(1) to resort to adjustment on claim of deduction under section 80P prior to amendment made by Finance Act, 2021 with effect from 1-4-2021. Held: In view of decision of High Court in the case of Veerappampalayam Primary Agricultural Cooperative Credit Society Limited v. Dy. CIT 2021 TaxPub(DT) 2373 (Mad-HC), any deduction claimed under Para 'C' of Chapter VIA, would be admissible, only if return of income in that case is filed within the prescribed due date and thus, no claim under any of provisions of the Para 'C' of the Chapter VI-A, would be admissible in case of belated return. Therefore, submission of assessee that amendment made to section 143(1)(a)(v) was applicable with effect from 1-4-2021, had no application in instant case as the assessee made incorrect claim according to aforementioned decision of the High Court. Hence, disallowance under section 80P had been rightly made by CPC and upheld by CIT(A).

Followed:AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Limited v. Dy. CIT (2022) 138 taxmann.com 571 (Madras) : 2021 TaxPub(DT) 2373 (Mad-HC)

REFERRED : Unagatla Large Sized Co-operative Credit Society Ltd v. ITO [ITA No. 255/VIZ/2021, dated 8-3-2023]

FAVOUR : Against the assessee

A.Y. : 2019-20

IN THE ITAT, VISAKHAPATNAM BENCH

DUVVURU RL REDDY, J.M.

Fishery Survey of India Employees Cooperative Credit & Thrift Society v. ITO

ITA No. 23/VIZ/2023

14 July, 2023

Appellant by: C Subrahmanyam, Authorized Representative

Respondent by: O.N. Hari Prasada Rao, Departmental Representative

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