ROYAL PALMS RESIDENCY COOPERATIVE HOUSING SOCIETY LIMITED,KOPROLI, PANVEL vs. CENTRALISED PROCESSING CENTRE/INCOME TAX OFFICER, WARD 5 PANVEL, PANVEL

The captioned appeal at the instance of assessee pertaining to A.Y. 2016-17 is directed against the order dated 23.09.2025 framed by Addl/JCIT (A), Bhubaneswar arising out of Intimation Order dated 14.06.2018 passed u/s.143(1) of the Income Tax Act, 1961 (in short ‘the Act’).

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the status of the assessee has been mentioned as “Firm” in the income-tax return and secondly the assessee has filed ITR-5 which is meant for filing the return for “Partnership Firm”. However, in the return so filed, the assessee has claimed deduction u/s.80P of the Act at Rs.12,26,028/-. CPC has denied the said claim. Though the ld. Counsel for the assessee has been claiming that no prior Intimation has been given, ld. DR has stated that prior Intimation has been issued by CPC. Further, ld. Counsel for the assessee submitted that such prima-facie adjustment denying deduction u/s.80P of the Act for delay in filing the return of income has been inserted in the statute by the Finance Act, 2021 giving powers to CPC u/s.143(1)(a)(v) of the Act and therefore such prima-facie adjustment made by CPC for A.Y. 2016-17 is uncalled for. My attention has been drawn to the details of documents filed in the paper book running into 101 pages and the case laws relied upon by ld. Counsel for the assessee. Index of the same reads as under :

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denied the claim u/s.80P of the Act solely on the ground of delay in filing of return of income but has denied the deduction u/s.80P of the Act as is not allowable to the “Partnership Firm”. All these facts clearly indicate that assessee did not appear before the ld. Assessing Officer to furnish details because the CPC has passed the order. Therefore, in the interest of justice, the issue on merits is restored to the file of ld. Juri ictional Assessing Officer for afresh adjudication and to compute the income of the assessee treating it to be a Cooperative Housing Society and thereafter examine the deduction u/s.80P of the Act in light of settled judicial precedents including the powers given to the CPC to make prima-facie adjustment u/s.143(1)(a)(v) of the Act to deny the deduction claimed under Chapter VIA of the Act for the returns filed beyond the prescribed due date and the said amendment is applicable from A.Y. 2021-22. Ld. Counsel for the assessee raised no objection if an opportunity is granted to the assessee by restoring the issue to the file of ld. Juri ictional Assessing Officer. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.JAO shall be free to proceed in accordance with law. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.

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Order pronounced on this 17th day of April, 2026. (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; दिन ांक / Dated : 17th April, 2026. Satish

Satish Kumar Madishetty Digitally signed by Satish Kumar Madishetty Date: 2026.04.17 18:22:31 +05'30'

आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : अपील र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent.

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