JHAUPATHARA SAMABAY KRISHI UNNYAN SAMITI LTD.,KOLKATA vs. A.D.I.T. , CPC, BENGALURU, BENGALURU

Though the assessee has raised six grounds of appeal, but the sole grievance of the assessee is against the finding of ld. CIT(Appeals) confirming the disallowance of deduction under section 80P of the Income Tax Act of Rs.6,03,194/-. We notice that the assessee is a Cooperative Society registered under the West Bengal Cooperative Society Act, 2006 and had filed its return of income belatedly for A.Y. 2019-20 on 12.03.2020 declaring a total income at ‘NIL’. The assessee has claimed deduction under section 80P of the Act at Rs.6,03,194/-. The case was processed under section 143(1)(a) of the Act by the Centralized Processing Centre, which denied the claim of deduction under section 80P of the Act on the ground that the return of income was not filed before the due date prescribed under section 139(1) of the Act. Therefore, in the light of provision of section 80AC of the Act, the deduction claimed under Chapter VI cannot be allowed.

We, however, notice that the processing of the income-tax return under section 143(1)(a) of the Act can be carried out after making certain adjustments. The impugned disallowance has been made under clause 143(1)(a)(v), which provides for the disallowance of deduction claimed under section 10(AA) or under 2

We notice that an amendment was brought in Finance Act, 2021 w.e.f. 01.04.2021 in section 143(1)(a)(v) by virtue of which in place of section “10AA, 80IA, 80IAB, 80IB, 80IC, 80ID or section 80IC” has been replaced by the words Section 10AA or under any of the provisions of Chapter VIA under the heading “C”- deduction in respect of certain income”. It transpires that prior to 01.04.2021, there was no mechanism with the CPC under section 143(1)(a)(v) of the Act for making prima facie adjustment towards disallowance of deduction claimed under section 80P of the Act, if the return is furnished beyond the due date specified under section 139(1) of the Act.

Under these given facts and circumstances, since the year under appeal for A.Y. 2019-20 and the amendment has been brought into force under section 143(1)(a)(v) of the Act from 01.04.2021, even though the assessee has filed belated return, the disallowance under section 80P of the Act cannot be made as a prima facie adjustment under section 143(1)(a) of the Act and for making any such disallowance, the case of the assessee was required to be selected for scrutiny and then, the procedure need to be adopted in accordance with law. With the above observation, we set aside the finding of the ld. CIT(Appeals) and 3

In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 11th September, 2023. Sd/- Sd/- (Sonjoy Sarma) (Manish Borad) Judicial Member Accountant Member Kolkata, the 11th day of September, 2023 Copies to :(1) Jhaupathara Samabay Krishi Unnyan Samiti Limited, Jhaupathara Champi, Mahishadal, Purba Medinipur-721628, West Bengal (2) Assistant Director of Income Tax, CPC, Bengaluru, 1st Floor, Prestige Alpha No. 48/1, 48/2, Beratenaagrahara Begur, Hosur Road, Uttarahalli, Karnataka-560100 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) Commissioner of Income Tax- ; (5) The Departmental Representative (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.