THE SHANTISHEELA CO-OPERATIVE HOUSING SOCIETY LTD,PUNE vs. THE INCOME TAX OFFICE, WARD-3(1), PUNE, PUNE

This appeal by the assessee arises out of the order dated 07-03-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2020-21.

The only issue raised herein is against the confirmation of addition of Rs.4,06,360/- made by the Assessing Officer (AO) on account of denial of deduction u/s 80P of the Act on interest from cooperative banks.

Briefly stated, the facts of the case are that the assessee filed its return on 27-12-2020. The original due date for filing the return was 31-07-2020. Because of Covid-19 pandemic, the due dates were extended for filing the return. Insofar as the assessee is concerned, the due date was extended upto 10-11-2021. The CPC processed the return u/s.143(1) and disallowed the amount of deduction u/s.80P(2)(d) on the ground that the return was filed belatedly.

Having heard the rival submissions and gone through the relevant material on record, it is seen that the sole reason given by the authorities for denial of deduction u/s.80P(2)(d) is the late filing of the return by the assessee. I have noted above that the extended due date for filing the return in the case of the assessee was 10-11-2021. As against that, the assessee filed the return on 27-12-2020. In that view of the matter, it becomes clear that the return filed by the assessee was within the time allowed u/s.139(1) of the Act as extended by the circular. The view point of the authorities that section 80AC prohibited granting of deduction u/s.80P(2)(d) on account of late filing of the return is untenable. I, therefore, overturn the impugned order and direct to grant the deduction u/s.80P(2)(d) to the extent of Rs. Rs.4,06,360/-.

In the result, the appeal is allowed. Order pronounced in the Open Court on 08th June, 2023.