SHRIMANT JAYSINGRAO GHATGE NAGARI SAHAKARI PAT SANSTHA LTD,KOLHAPUR vs. INCOME TAX OFFICER, WARD-1(5), KOLHAPUR, KOLHAPUR

This appeal by the assessee arises out of the order dated 28-02-2023 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 2018-19.

The only issue raised in this appeal is against the denial of deduction u/s.80P of the Act.

Briefly stated, the facts of the case, are that the assessee is a cooperative credit society engaged in providing credit facilities to its members. The return of income was filed u/s.139(4) of the Act. Such Shrimant Jaysingrao Ghatge Nagari Sahakari Patsanstha Ltd., return was processed u/s.143(1) and the amount of deduction claimed by the assessee u/s.80P was disallowed on the ground that the return was not filed as per the due date u/s.139(1) of the Act. The ld. CIT(A) did not accept the assessee’s contention and held section 80AC to be applicable as per which deduction can be allowed only on the filing of return u/s.139(1). Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

I have heard both the sides and gone through the relevant material on record. The assessee’s return filed u/s 139(4) of the Act was processed u/s.143(1). Here, it is relevant to mention that the Finance Act, 2021 carried out amendment to section 143(1)(a)(v) w.e.f. 01-04-2021 stipulating the deduction to be allowed only if the return was filed by the due date specified u/s.139(1) of the Act. Prior to this, there was no such requirement of filing the return u/s.139(1) so as to escape from the rigour of section 143(1)(a)(v) of the Act. The assessment year under consideration is 2018-19 and hence, the amended provision is not applicable. I, therefore, hold that though the assessee contravened section 80AC but because of the processing of the return u/s.143(1), cannot be saddled with the disallowance of Shrimant Jaysingrao Ghatge Nagari Sahakari Patsanstha Ltd., deduction u/s.80P on the ground of filing of the return u/s.139(1) of the Act. Similar view has been taken by the Pune Benches of the Tribunal in Finolex Industries Ltd. Employees Co-op Credit Society Ltd. Vs. ITO (ITA No.76/PUN/2023), a copy of such order dated 03-04-2023 has been placed on record. Respectfully following the precedent, I overturn the impugned order on this issue and direct to grant the deduction u/s.80P as claimed by the assessee in the processing of the return u/s 143(1) of the Act.

In the result, the appeal is allowed. Order pronounced in the Open Court on 19th May, 2023.