ROYAL PALMS RESIDENCY CO-OPERATIVE HOUSING SOCIETY LIMITED,PANVEL vs. INCOME TAX OFFICER, WARD 5, PANVEL, PANVEL

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1316/PUN/2026 िनधा�रण वष� / Assessment Year : 2018-19 Royal Palms Residency Co- Vs. Income Tax Officer, operative Housing Society Ward-5, Panvel. Limited, Survey No.7/6A, 7/6B, Matheran Road, Koproli, Panvel- 410706. PAN : AACAR1399A Appellant Respondent Assessee by : Shri Rajesh Shah (Virtual) Revenue by : Shri Dr. Amit Munde Date of hearing : 24.08.2026 Date of pronouncement : 25.08.2026 आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. Addl./JCIT(A), Bhubaneswar [‘Ld. CIT(A)’] dated 16.02.2026 which is arising out of the rectification order u/s 154 of the Act for Assessment Year 2018-19 framed on 08.10.2020 by the ADIT, CPC, Bengaluru. 2. The sole grievance of the assessee is that the CPC erred in disallowing the deduction u/s 80P of the Act at Rs.3,56,670/-.

2 ITA No.1316/PUN/2026 3. At the outset, Ld. counsel for the assessee submitted that the CPC erred beyond the jurisdiction as the power to make prima-facie adjustments u/s 143(1) of the Act r.w. section 80AC of the Act regarding deduction claimed under Chapter VI-A in return of income filed beyond the due date prescribed u/s 139(1) of the Act have been brought into effect from 01.04.2021. Reliance placed on the decision of Coordinate Mumbai Bench of this Tribunal in the case of New Shangrilla Cooperative Housing Society Ltd. vs. CPC in ITA No.756/MUM/2024 dated 28.06.2024. 4. On the other hand, Ld. DR supported the order of Ld. CIT(A)/NFAC. 5. I have heard rival contentions and perused the records placed before me. I observe that the assessee which is cooperative housing society filed return of income for A.Y. 2018-19 on 08.09.2018 which is after the due date i.e. 31.08.2018. The CPC processed the return and vide order dated 07.06.2019 has disallowed the deduction claimed under Chapter VI-A us 80AC of the Act on account of delay in filing of the return. I find that the power to make the disallowance u/s 143(1)((a)(v) of the Act pre and post amendment

3 ITA No.1316/PUN/2026 of Finance Act, 2021 came for adjudication before Coordinate Mumbai Bench of this Tribunal in the case of New Shangrilla Cooperative Housing Society Ltd. (supra) wherein the Tribunal held as under :- “3. On merits, after hearing both the parties and on perusal of the impugned order and the material placed on record we find that CPC has made adjustment for disallowance of interest claimed u/s.80P despite the fact that no such primafacie adjustment could have been made for disallowing the deduction u/s.80P within the scope and ambit of Section 143(1)(a) in the A.Y.2014-15 and 2015-16. The primafacie adjustment as provided in Section 143(1)(a) Clause v was with respect to deductions claimed u/s.10AA, 80IA, 80IAB, 80IB, 80IC, 80ID or Section 80IE. The amendment was brought by the Finance Act 2021 w.e.f. A.Y.2021-22 to include disallowance of deduction claimed under Chapter VIA. Thus, prior to A.Y.2021-22, no adjustment could have been made for disallowing the claim u/s.80P. Thus, at the threshold, the adjustment itself was bad in law. Moreover, the CPC has proceed on the ground that return of income has been filed beyond the due date of Section 139(1) which is not correct because since assessee is a co- operative housing society governed by Maharashtra Co-operative Society’s Act 1960, it is mandatorily required to get its account audited. The due date for filing of return of income in the case of audited accounts was on 31/10/2014 and 31/10/2015. Thus, on this ground also, the CPC was not justified disallowing the claim of deduction. Accordingly, adjustment made u/s.143(1) is deleted.” 6. On examination of the facts and circumstances in the light of above decision, I find that the same is squarely applicable in the facts of the instance case and that the CPC has made the alleged adjustments vide its order dated 07.06.2019 which is prior to the amendment brought into effect from 01.04.2021 and therefore, the

4 ITA No.1316/PUN/2026 alleged adjustments could not have been made by the CPC in the processing of return u/s 143(1) of the IT Act. Finding of Ld. CIT(A)/NFAC is set-aside and deduction Rs.3,56,670/- claimed by the assessee u/s 80P of the IT Act is hereby allowed. Other grounds of appeal becomes academic in nature needs no adjudication. 7. In the result, the appeal of the assessee is allowed as per terms indicated hereinabove. Order pronounced on this 25th day of August, 2026. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; �दनांक / Dated : 25th August, 2026. Sujeet Sujeet Kumar Digitally signed by Sujeet Kumar Sharma Sharma Date: 2026.08.27 12:35:36 +05'30' आदेश क� �ितिलिप अ�ेिषत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The Addl./JCIT(A), Bhubaneswar. 4. The Pr. CIT/CIT concerned. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब�च, 5. पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.