POONAM CHAMBERS B WING COMMERCIAL PREMISES CO OPERATIVE SOCIETY LTD,MUMBAI vs. DEPUTY COMMISSIONER INCOME TAX, MUMBAI

ITA 7043/MUM/2026Status: HeardITAT Mumbai08 October 2026AY 2019-2013 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CPC Bengaluru did not have the power to make a disallowance of deduction claimed under Section 80P(2)(d) under Section 143(1)(a) of the Act for the assessment year in question. The Tribunal noted that the power to disallow deductions under Chapter VI-A was introduced by the Finance Act, 2021, and was applicable for assessment years commencing on or after April 1, 2021. Therefore, the action of the CPC in making such a disallowance was incorrect. The Tribunal also considered the argument regarding the delay in filing the return and the reasons provided by the assessee. The appeals were allowed on this primary ground, setting aside the disallowance made by the CPC and confirmed by the CIT(A). The Tribunal did not explicitly address the applicability of Section 80AC in its final decision, focusing instead on the CPC's lack of power for the specific disallowance.

What were the facts?

The assessee, Poonam Chambers B Wing Commercial Premises Co Operative Society Ltd., filed appeals against two separate orders dated 18/03/2026 passed by the Ld. Addl./JCIT(A), Kochi, under Section 250 of the Income-tax Act, 1961. These orders pertained to Assessment Years (AY) 2019-20 and 2021-22. The appeals were heard together as the assessee was common and the primary issue involved deduction claimed under Section 80P(2)(d) of the Act. For AY 2019-20, the assessee claimed a deduction of Rs. 91,26,052. The assessee's return for AY 2019-20 was filed on 20/09/2019, which was 20 days after the extended due date of 31/08/2019. The delay was attributed to internal disputes within the managing committee, leading to its dissolution and the appointment of an administrator.

What were the issues?

1. Whether the Tribunal has jurisdiction to decide the appeal when the assessee's return was filed after the due date and the deduction under Section 80P(2)(d) was disallowed by the CPC under Section 143(1)(a) of the Act? Assessee's Contention: The assessee argued that the Central Processing Centre (CPC), Bengaluru, lacked the power to disallow deductions claimed under Chapter VI-A, specifically Section 80P(2)(d), under Section 143(1)(a). The assessee contended that the power for such disallowance was introduced by the Finance Act, 2021, and was applicable only for subsequent assessment years. Reliance was placed on the decision in Vishva Villa Co Op Housing Society Ltd. The assessee also argued that the delay in filing the return was due to circumstances beyond its control. Revenue's Contention: The revenue, through the Ld. CIT(A), confirmed the disallowance made by CPC Bengaluru. The Ld. CIT(A) noted that the deduction was denied for failing to comply with the provisions of Section 80AC, which is applicable from AY 2018-19. The revenue implicitly supported the CPC's action.

Which sections of the Income-tax Act were involved?

Section 80P(2)(d),Section 143(1)(a),Section 80AC

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Heard together (2 matters)

ITA 7043/MUM/2026
ITA 7044/MUM/2026

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अधिकरण, म ुंबई पीठें, म ुंबई INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, MUMBAI BENCH: C BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER ITA 7043/MUM/2026 (निर्धारण वर्ा/Assessment Year: 2019-20) POONAM CHAMBERS B WING DEPUTY COMMISSIONER COMMERCIAL PREMISES CO INCOME TAX OPERATIVE SOCIETY LTD DCIT CIRCLE 22-1, PIRAMAL MUMBAI-400012, MUMBAI-400018, MAHARASHTRA MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAAAP1685M

अपीलधर्थी द्वारा/Appellant represented by: Shri Vishnu Agarwal, AR प्रत्यर्थी द्वारा/Respondent represented by: Shri Ajay Soneji SR-Dr

ITA 7044/MUM/2026 (निर्धारण वर्ा/Assessment Year: 2021-2022) POONAM CHAMBERS B WING DEPUTY COMMISSIONER COMMERCIAL PREMISES CO INCOME TAX OPERATIVE SOCIETY LTD DCIT CIRCLE 22-1, PIRAMAL MUMBAI-400012, MUMBAI-400018, MAHARASHTRA MAHARASHTRA अपीलधर्थी Appellant प्रत्यर्थी Respondent

PAN of Assessee: AAAAP1685M

अपीलधर्थी द्वारा/Appellant represented by: Shri Vishnu Agarwal, AR प्रत्यर्थी द्वारा/Respondent represented by: Shri Ajay Soneji SR-Dr

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