BHAGWAN SHREE AGRASEN NAGARI SAHAKARI PATSANSTHA MARYADIT,LONAVALA vs. ITO, WARD 9(3), PUNE

The assessee has raised the following grounds of appeal : “Each ground is taken without prejudice to each other. On the facts and in the circumstances of the case and in law and 1. The learned AO has erred in denying / rejecting claim of deduction made by assessee in ITR under section 80P(2) of Rs. 31,46,806/- and the learned CIT (A) erred in confirming the same.

None appeared on behalf of the assessee. In this case, assessee has preferred appeal against the order u/s 250 of the Income Tax Act, 1961 for AY 2022-23, emanating from the rectification order passed u/s 154 of the Act for AY 2022-23. Thus, the bone of contention is the rectification order passed u/s 154 of the Act for AY 2022-23 on 29.08.2025. The relevant paragraphs of the rectification order are reproduced here as under : “In this case, the assessee filed its return of income for A.Y. 2022-23 on 26/12/2022 declaring total income at Rs.1,00,000/- after claiming deductions of Rs.31,46,806/- u/s 80P of the I.T. Act, 1961. CPC

Thus, in this case, assessee’s claim for deduction for u/s 80P of the Act was not allowed in the order u/s 143(1) dated 17.02.2023 on the ground that the assessee had not filed income tax return within the statutory time limit allowed u/s 139(1) of the Act. While rejecting assessee’s claim for deduction u/s 80P, the Assessing Officer (AO) in order u/s 143(1) has referred to the section 80AC of the Act.

The assessee filed rectification application with the AO against the said order u/s 143(1) dated 17.02.2023. There is no dispute on the facts that the return of income was filed by the assessee on 26.12.2022 which was after the statutory time limit mentioned u/s 139(1) of the Act. In this context section 80AC is reproduced here as under : “Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after—

Thus, as per section 80AC of the Act, no deduction is admissible unless return of income is filed on or before the due date specified u/s 139(1) of the Act.

Section 143(1) of the Act is reproduced here as under : “Assessment. 143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely:— (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure 68[or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under 69[section 10AA or under any of the provisions of Chapter VI-A under the heading "C.—Deductions in respect of certain incomes", if] the return is

Thus, there is a specific provisions in section 143(1)(v) of the Act, wherein it is mentioned that deduction cannot be allowed unless return of income has been filed on or before the due date mentioned u/s 139(1) of the Act.

In this case, assessee has accepted that assessee has filed return of income beyond the time allowed u/s 139(1) of the Act. Therefore, the AO in order u/s 143(1) dated 17.02.2023 has disallowed assessee’s claim for deduction u/s 80P of the Act for AY 2022-23.

Assessee has filed rectification application before the AO against the said order u/s 143(1) of the Act. As per section 154 of the Act, the AO can rectify only the mistake apparent from record. In the case of the assessee, there is no mistake apparent from record in the order u/s 143(1). The AO has followed the provisions of law, which we have already reproduced above i.e. section 80AC r.w.s. 143(1) of the Act and then disallowed the assessee’s claim for deduction u/s 80P of the Act. Therefore, the order u/s 143(1) is as per the provisions of the Act. Hence, there is no mistake in the order u/s 143(1) of the Act.

In these facts and circumstances of the case, the AO has rightly rejected the assessee’s application u/s 154 of the Act,

In the result, the appeal of the assessee is dismissed.