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Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN
This appeal by the assessee is directed against order dated 14.02.2025 passed by the Ld. Addl./Joint Commissioner of Income- tax (Appeals) -1, Kolkata [in short ‘the Ld. CIT(A)’] for assessment year 2012-13, raising following grounds:
On facts, in circumstances of the case and in law, Honorable CIT- A ought to have held that adjustment made to total income by The Woodland Co Woodland Co-operative Housing 2 Society Ltd ITA No. 2545/MUM/2025
Centralised Processing Centralised Processing Centre, Bangalore was outside the scope Centre, Bangalore was outside the scope of provisions of section 143(1) of the Income Tax Act, 1961. of provisions of section 143(1) of the Income Tax Act, 1961. of provisions of section 143(1) of the Income Tax Act, 1961. On facts, in circumstances of the case and in law, Honorable CIT On facts, in circumstances of the case and in law, Honorable CIT On facts, in circumstances of the case and in law, Honorable CIT- A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of A ought to have allowed the claim of deduction u/s 80(P)(2)(d) of the appellant society in the appellant society in respect of interest income from co respect of interest income from co- operative banks amounting to Rs. 3,77,131/ operative banks amounting to Rs. 3,77,131/-On facts, in On facts, in circumstances of the case and in law, Honorable CIT circumstances of the case and in law, Honorable CIT circumstances of the case and in law, Honorable CIT-A ought to have deleted interest of Rs. 1,161/ have deleted interest of Rs. 1,161/- u/s 234A, Rs.12,771/ u/s 234A, Rs.12,771/- u/s 234B and Rs.4,296/ 234B and Rs.4,296/- u/s 234C, The appellant craves leave to add, alter, modify or delete any of llant craves leave to add, alter, modify or delete any of llant craves leave to add, alter, modify or delete any of the above Grounds the above Grounds of Appeal
2. Briefly stated, the facts of the case are that the assessee is a Briefly stated, the facts of the case are that the assessee is a Briefly stated, the facts of the case are that the assessee is a co-operative housing society, which filed its return of income for the operative housing society, which filed its return of income for the operative housing society, which filed its return of income for the relevant assessment year on 29 relevant assessment year on 29.09.2012, declaring total income of .09.2012, declaring total income of ₹8,900/-. The assessee had earned interest and dividend income . The assessee had earned interest and dividend income . The assessee had earned interest and dividend income aggregating to ₹3,77,131/ 3,77,131/- from various co-operative banks and operative banks and claimed deduction under Section 80P(2)(d) of the Income-tax Act, claimed deduction under Section 80P(2)(d) of the Income claimed deduction under Section 80P(2)(d) of the Income 1961 (hereinafter referred to 1961 (hereinafter referred to as 'the Act') in respect of the said as 'the Act') in respect of the said income. The return of income was processed under Section 143(1) income. The return of income was processed under Section 143(1) income. The return of income was processed under Section 143(1) of the Act on 27.02.2013, wherein the deduction claimed under of the Act on 27.02.2013, wherein the deduction claimed under of the Act on 27.02.2013, wherein the deduction claimed under Section 80P(2)(d) was denied. Section 80P(2)(d) was denied.
3. In the appellate proceedings, the ld. CIT(A) took note of the fact 3. In the appellate proceedings, the ld. CIT(A) took note of t 3. In the appellate proceedings, the ld. CIT(A) took note of t that the original return of income was filed by the assessee on that the original return of income was filed by the assessee on that the original return of income was filed by the assessee on 29.09.2012, which was beyond the due date prescribed under 29.09.2012, which was beyond the due date prescribed under 29.09.2012, which was beyond the due date prescribed under Section 139(1) of the Act, i.e., 31.08.2012, for the relevant Section 139(1) of the Act, i.e., 31.08.2012, for the relevant Section 139(1) of the Act, i.e., 31.08.2012, for the relevant assessment year. The learned CIT(A) placed reliance on the decision assessment year. The learned CIT(A) placed reliance on the deci assessment year. The learned CIT(A) placed reliance on the deci of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in The Woodland Co Woodland Co-operative Housing 3 Society Ltd the assessee's own case for the Assessment Year 2021-22 (ITA No. the assessee's own case for the Assessment Year 2021 the assessee's own case for the Assessment Year 2021 306/Mum/2024 dated 27.06.2024), wherein it was held that 306/Mum/2024 dated 27.06.2024), wherein it was held that 306/Mum/2024 dated 27.06.2024), wherein it was held that adjustment in respect of disallowance of deduction under Section adjustment in respect of disallowance of deduction under Section adjustment in respect of disallowance of deduction under Section 80P(2)(d) is permissible while processing the return under Section 80P(2)(d) is permissible while processing the return under Section 80P(2)(d) is permissible while processing the return under Section 143(1)(a)(v) of the Act, in cases where the return has been filed 143(1)(a)(v) of the Act, in cases where the return has been filed 143(1)(a)(v) of the Act, in cases where the return has been filed beyond the prescribed due date. beyond the prescribed due date.The relevant finding of finding of the ld CIT(A) is reproduced as under: is reproduced as under:
“ para H 2 ....................................... ....................................... The Appellant submitted that its own appeal has been adjudicated The Appellant submitted that its own appeal has been adjudicated The Appellant submitted that its own appeal has been adjudicated by the Hon’ble ITAT, Mumbai vide dated by the Hon’ble ITAT, Mumbai vide dated by the Hon’ble ITAT, Mumbai vide ITA No. 306/Mum/2024 dated 27/06/2024 for the A.Y. 2021 27/06/2024 for the A.Y. 2021-22 is as under: “ 143. 91[(1) Where a return has been made under [(1) Where a return has been made under section 139, or in re , or in response to a notice under sub-section (1) of section (1) of section 142, such return shall be processed in the following manner, , such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, the total income or loss shall be computed after making the following adjustments, the total income or loss shall be computed after making the following adjustments, namely:- any arithmetical error in the return; 92[***] (i) any arithmetical error in the return; (ii) an incorrect claim, if such incorrect claim is apparent an incorrect claim, if such incorrect claim is apparent from any information in the return; from any information in the return; 92a [ any such inconsistency in the return, with respect to the information in the return of any any such inconsistency in the return, with respect to the information in the return of any any such inconsistency in the return, with respect to the information in the return of any (iia) preceding previous year, as may be prescribed; preceding previous year, as may be prescribed;] 93[(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed disallowance of loss claimed, if return of the previous year for which set off of loss is claimed 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 was furnished beyond the due date specified under sub-section (1) of section 139 section 139; disallowance of expenditure 94[or increase in income] indicated in the audit report but not taken (iv) disallowance of expenditure [or increase in income] indicated in the audit report but not taken into account in computing the total income in the return; into account in computing the total income in the return; disallowance of deduction claimed under 95[section 10AA or under any of the provisions of (v) disallowance of deduction claimed under or under any of the provisions of Chapter VI-A under the heading “C. A under the heading “C.-Deductions in respect of certain incomes”, if] the return is Deductions in respect of certain incomes”, if] the return is furnished beyond the due date specified unde furnished beyond the due date specified under sub-section (1) of section 139 section 139; or (vi) addition of income appearing in addition of income appearing in Form 26AS or Form 16A or Form 16 Form 16 which has not been included in computing the total income in the return: included in computing the total income in the return: The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of The disallowance of deduction under chapter VI A under section 143 (1) (a) (v) of the act only furnishing of return This only be made account of non the act only furnishing of return This only be made account of non- income within the due date of filing of the reason. iling of the reason.” Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Therefore, placing reliance on the judicial precedent of the Hon'ble ITAT, Mumbai in Appellant's own case, the disallowance made by the CPC is Mumbai in Appellant's own case, the disallowance made by the CPC is Mumbai in Appellant's own case, the disallowance made by the CPC is The Woodland Co Woodland Co-operative Housing 4 Society Ltd ITA No. 2545/MUM/2025 hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in hereby upheld. The CPC has rightly disallowed the claim u/s. 80P(2)(d) in respect of income and dividend income from co income and dividend income from co- operative banks operative banks amounting to Rs. 3,77,131/ amounting to Rs. 3,77,131/- as the return was not filed as per the as the return was not filed as per the provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground provisions of Section 139(1) of the I. T. Act, 1961. Hence, the Ground No 3 is DISMISSED.”
We have heard the rival submissions advance We have heard the rival submissions advanced by the learned d by the learned counsel for the parties and perused the relevant material available counsel for the parties and perused the relevant material available counsel for the parties and perused the relevant material available on record. The two issue that arises for our consideration is, on record. The two issue that arises for our consideration is, on record. The two issue that arises for our consideration is, firstly, whether the ld CIT(A) is justified in upholding the , whether the ld CIT(A) is justified in upholding the , whether the ld CIT(A) is justified in upholding the adjustment invoking section 143(1)(1)(v) of the Act disallowing the adjustment invoking section 143(1)(1)(v) of the Act disallowing the adjustment invoking section 143(1)(1)(v) of the Act disallowing the deduction claimed under Section 80P(2)(d) of the Act, on the ground deduction claimed under Section 80P(2)(d) of the Act, on the ground deduction claimed under Section 80P(2)(d) of the Act, on the ground that the return of income was filed beyond the prescribed due date that the return of income was filed beyond the prescribed due dat that the return of income was filed beyond the prescribed due dat under Section 139(1) of the Act, under Section 139(1) of the Act, secondly, whether the ld , whether the ld Centralized Processing Centre (CPC) was justified in making an Centralized Processing Centre (CPC) was justified in making an Centralized Processing Centre (CPC) was justified in making an adjustment under Section 143(1)(a) of the Act holding it to be an adjustment under Section 143(1)(a) of the Act holding it to be an adjustment under Section 143(1)(a) of the Act holding it to be an incorrect claim.
4.1 Before us, the learned counsel for the assess Before us, the learned counsel for the assess Before us, the learned counsel for the assessee has placed reliance upon the decision of the Income Tax Appellate Tribunal, reliance upon the decision of the Income Tax Appellate Tribunal, reliance upon the decision of the Income Tax Appellate Tribunal, Mumbai Bench, rendered in the assessee’s own case in Bench, rendered in the assessee’s own case in Bench, rendered in the assessee’s own case in ITA No. 309/Mum/2024 for the Assessment Year 2021 309/Mum/2024 for the Assessment Year 2021–22.
4.2 The Tribunal (supra), after analyzing the scope of permissible The Tribunal (supra), after analyzing the scope of permissible The Tribunal (supra), after analyzing the scope of permissible adjustments under Section 143(1)(a), has held that disallowance of justments under Section 143(1)(a), has held that disallowance of justments under Section 143(1)(a), has held that disallowance of deduction under Chapter VI deduction under Chapter VI-A can only be made in terms of sub A can only be made in terms of sub- clause (v) of clause (a) to Section 143(1), and such disallowance is clause (v) of clause (a) to Section 143(1), and such disallowance is clause (v) of clause (a) to Section 143(1), and such disallowance is legally sustainable only where the return of income has been filed legally sustainable only where the return of income has been legally sustainable only where the return of income has been The Woodland Co Woodland Co-operative Housing 5 Society Ltd beyond the due date specified under Section 139(1). The Tribunal beyond the due date specified under Section 139(1). beyond the due date specified under Section 139(1). further held that where the return is filed within the prescribed further held that where the return is filed within the prescribed further held that where the return is filed within the prescribed time, any disallowance of deduction under Section 80P(2)(d) would time, any disallowance of deduction under Section 80P(2)(d) would time, any disallowance of deduction under Section 80P(2)(d) would not fall within the scope of an “incorrect claim” as not fall within the scope of an “incorrect claim” as envisaged under envisaged under sub-clauses (i) to (iii) of Section 143(1)(a). It was specifically clauses (i) to (iii) of Section 143(1)(a). It was specifically clauses (i) to (iii) of Section 143(1)(a). It was specifically observed that deduction under Section 80P(2)(d) is not subject to observed that deduction under Section 80P(2)(d) is not subject to observed that deduction under Section 80P(2)(d) is not subject to any statutory limit, percentage, or monetary threshold so as to any statutory limit, percentage, or monetary threshold so as to any statutory limit, percentage, or monetary threshold so as to render it an incorrect claim apparent from render it an incorrect claim apparent from the return. The Tribunal the return. The Tribunal also noted that merely because a part of the interest income was also noted that merely because a part of the interest income was also noted that merely because a part of the interest income was classified by the assessee under the head “Income from Other classified by the assessee under the head “Income from Other classified by the assessee under the head “Income from Other Sources” and another part under “Profits and Gains of Business or Sources” and another part under “Profits and Gains of Business or Sources” and another part under “Profits and Gains of Business or Profession” does not alter the essenti Profession” does not alter the essential nature of the income nor al nature of the income nor vitiate the claim of deduction, provided the conditions under vitiate the claim of deduction, provided the conditions under vitiate the claim of deduction, provided the conditions under Section 80P(2)(d) are otherwise satisfied. It is further relevant to Section 80P(2)(d) are otherwise satisfied. It is further relevant to Section 80P(2)(d) are otherwise satisfied. It is further relevant to note that the Tribunal held, on merits, that co note that the Tribunal held, on merits, that co-operative banks are operative banks are nothing but co-operative soci operative societies engaged in the business of eties engaged in the business of banking, and therefore, income earned by the assessee society by banking, and therefore, income earned by the assessee society by banking, and therefore, income earned by the assessee society by way of interest from such banks is eligible for deduction under way of interest from such banks is eligible for deduction under way of interest from such banks is eligible for deduction under Section 80P(2)(d). The assessee being a co Section 80P(2)(d). The assessee being a co-operative housing society operative housing society and not a co-operative ba operative bank, the provisions of Section 80P(4) are nk, the provisions of Section 80P(4) are not attracted. The relevant finding of the Tribunal The relevant finding of the Tribunal(supra) is The relevant finding of the Tribunal reproduced as under: reproduced as under:
“4. We have heard the rival contention and perused the 4. We have heard the rival contention and perused the 4. We have heard the rival contention and perused the orders of the lower authorities. The issue involved in this orders of the lower authorities. The issue involved in this orders of the lower authorities. The issue involved in this appeal is whether appeal is whether the assessee is entitled to deduction under the assessee is entitled to deduction under The Woodland Co Woodland Co-operative Housing 6 Society Ltd section 80 P (2) (D) of the act on account of interest income section 80 P (2) (D) of the act on account of interest income section 80 P (2) (D) of the act on account of interest income earned by the assessee from other cooperative banks even if earned by the assessee from other cooperative banks even if earned by the assessee from other cooperative banks even if it is disclosed as income from other sources and whether the it is disclosed as income from other sources and whether the it is disclosed as income from other sources and whether the adjustment made by the centr adjustment made by the central processing Centre is correct al processing Centre is correct or not.
5. As per provisions of section 143 (1) (a) permits following 5. As per provisions of section 143 (1) (a) permits following 5. As per provisions of section 143 (1) (a) permits following adjustment to the total income of the assessee: to the total income of the assessee:- 143. 67[(1) Where a return has been made under section 139, 143. 67[(1) Where a return has been made under section 139, 143. 67[(1) Where a return has been made under section 139, or in response to a notice under sub or in response to a notice under sub-section (1) of section (1) of section 142, such return shall be processed in the following manner, such return shall be processed in the following manner, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making (a) the total income or loss shall be computed after making (a) the total income or loss shall be computed after making the following adjustments, namely: the following adjustments, namely:— (i) any arithmetical error in the return; 68[***] (i) any arithmetical error in the return; 68[***] (ii) an incorrect claim, (ii) an incorrect claim, if such incorrect claim is apparent if such incorrect claim is apparent from any information in the return; any information in the return; [(iii) disallowance of loss claimed, if return of the previous [(iii) disallowance of loss claimed, if return of the previous [(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished year for which set off of loss is claimed was furnished year for which set off of loss is claimed was furnished beyond the due date specified under sub beyond the due date specified under sub-section (1) section (1) of section 139; (iv) disallowance of expenditure 70[or increase in income] (iv) disallowance of expenditure 70[or increase in income] (iv) disallowance of expenditure 70[or increase in income] indicated in the audit report but not taken into indicated in the audit report but not taken into account in account in computing the total income in the return; computing the total income in the return; (v) disallowance of deduction claimed under 71[section (v) disallowance of deduction claimed under 71[section (v) disallowance of deduction claimed under 71[section 10AA or under any of the provisions or under any of the provisions of Chapter VI-A under the under the heading "C.— —Deductions in respect of certain incomes", if] the certain incomes", if] the return is furnished beyond return is furnished beyond the due date specified under sub the due date specified under sub- section (1) of section 139; or of section 139; or (vi) addition of income appearing in Form 26AS or Form (vi) addition of income appearing in Form 26AS or Form (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which or Form 16 which has not been included in computing the computing the total income in the return: total income in the return: 6. The disallowance of deduction under chapter VI A can only 6. The disallowance of deduction under chapter VI A can only 6. The disallowance of deduction under chapter VI A can only be made under section 143 (1) (a) (v) of the act only on under section 143 (1) (a) (v) of the act only on under section 143 (1) (a) (v) of the act only on account of non account of non- furnishing of return of income within the due furnishing of return of income within the due date of filing of the filing of the return. This is not the reason.
The Woodland Co Woodland Co-operative Housing 7 Society Ltd ITA No. 2545/MUM/2025
Claim of the assessee cannot be said to be an incorrect 7. Claim of the assessee cannot be said to be an incorrect 7. Claim of the assessee cannot be said to be an incorrect claim in view of the explanation (a) which is as under:- - (a) "an incorrect claim apparent from any information in the (a) "an incorrect claim apparent from any information in the (a) "an incorrect claim apparent from any information in the return" shall mean a claim, on th return" shall mean a claim, on the basis of an entry, in e basis of an entry, in the return,— (i) of an item, which is inconsistent with another entry of (i) of an item, which is inconsistent with another entry of (i) of an item, which is inconsistent with another entry of the same or some other item in such return; same or some other item in such return; (ii) in respect of which the information required to be (ii) in respect of which the information required to be (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has furnished under this Act to substantiate such entry has furnished under this Act to substantiate such entry has not been so furnished; or been so furnished; or (iii) in respect of a deduction, where such deduction (iii) in respect of a deduction, where such deduction exceeds exceeds specified statutory limit which may have been specified statutory limit which may have been expressed as expressed as monetary amount or percentage or ratio monetary amount or percentage or ratio or fraction; 8. It is not the case that deduction under section 80 P (2) 8. It is not the case that deduction under section 80 P (2) 8. It is not the case that deduction under section 80 P (2) (d) is a deduction provided by any monitoring limit or percentage deduction provided by any monitoring limit or percentage deduction provided by any monitoring limit or percentage ratio or fraction. Thus, claim of deduction under section 80 P fraction. Thus, claim of deduction under section 80 P fraction. Thus, claim of deduction under section 80 P (2) (d) is also not classified as incorrect claim. Merely because not classified as incorrect claim. Merely because not classified as incorrect claim. Merely because part of the interest part of the interest is disclosed by the assessee is interes is disclosed by the assessee is interest income in profit and loss income in profit and loss account and part of the income account and part of the income shown by the assessee under the shown by the assessee under the head income from other head income from other sources does not change the character of sources does not change the character of the income and the income and consequent deduction of such income, if available. consequent deduction of such income, if available. Therefore, Therefore, the claim of the the claim of the assessee in the return of income is also assessee in the return of income is also not an incorrect claim. an incorrect claim. 9. Thus, the adjustment of disallowance of deduction under 9. Thus, the adjustment of disallowance of deduction under 9. Thus, the adjustment of disallowance of deduction under that section is not permissible adjustment provided under is not permissible adjustment provided under is not permissible adjustment provided under section 143 (1) of the section 143 (1) of the act. Therefore the intimation passed act. Therefore the intimation passed under section under section 143 (1) is not sustainable. 10. On the merits of the case, provisions of section 2 (19) 10. On the merits of the case, provisions of section 2 (19) 10. On the merits of the case, provisions of section 2 (19) define a co-operative society as under: operative society as under:- 19) "co-operative society"97 means a co operative society"97 means a co-operative society operative society registered under the Co registered under the Co-operative Societies Act, 1912 (2 of operative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in under any other law for the time being in force in under any other law for the time being in force in any State for the registration of co any State for the registration of co-operative societies ; 11. Thus, for the definition of the cooperative society whether 11. Thus, for the definition of the cooperative society whether 11. Thus, for the definition of the cooperative society whether covers the cooperative banks are not one has to look at the cooperative banks are not one has to look at the cooperative banks are not one has to look at the respective cooperative societies act is applicable. cooperative societies act is applicable.
The Woodland Co Woodland Co-operative Housing 8 Society Ltd ITA No. 2545/MUM/2025
THE MAHARASHTRA CO 12. THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, OPERATIVE SOCIETIES ACT, 1960, Defines 1960, Defines cooperative banks as per section 2 (10) of that cooperative banks as per section 2 (10) of that Act as under : Act as under :‖- ―Co-operative bank operative bank‖ means a Co-operative society which is operative society which is doing the business of banking business of banking as defined in clause (b) of sub as defined in clause (b) of sub- sections (1) of sections (1) of section 5 of the Banking Companies Act, 1949 section 5 of the Banking Companies Act, 1949 and includes any and includes any society which is functioning or is to function society which is functioning or is to function as an Agricultural and as an Agricultural and Rural Development Bank under Rural Development Bank under Chapter X.
Thus it is apparent that coopera 13. Thus it is apparent that cooperative banks are also a co tive banks are also a co- operative society. Only difference is that those cooperative society. Only difference is that those cooperative society. Only difference is that those cooperative societies are doing societies are doing the business of banking as per the the business of banking as per the banking companies act 1949. banking companies act 1949. Therefore, merely because Therefore, merely because these cooperative societies cooperative these cooperative societies cooperative bank they do not lose bank they do not lose their status as a co their status as a co-operative society.
According to the provisions of section 80 P (2) (d) of the 14. According to the provisions of section 80 P (2) (d) of the 14. According to the provisions of section 80 P (2) (d) of the income tax act act (d) in respect of any income by way of interest or dividends (d) in respect of any income by way of interest or dividends (d) in respect of any income by way of interest or dividends derived by the co by the co-operative society from its investments with operative society from its investments with any other co-operative society, the whole of such income; operative society, the whole of such income; operative society, the whole of such income; 15. Thus, the assessee’s investment of earning interest 15. Thus, the assessee’s investment of earning interest 15. Thus, the assessee’s investment of earning interest income from income from such cooperative banks which are also such cooperative banks which are also cooperative societies whole cooperative societies whole of such income is deductible of such income is deductible under this section. under this section. 16. It is not in dispute 16. It is not in dispute that assessee is not a cooperative that assessee is not a cooperative bank and therefore provisions of section 80 P (4) of the act therefore provisions of section 80 P (4) of the act therefore provisions of section 80 P (4) of the act does not apply to does not apply to it. 17. Thus the assessee is eligible for deduction under section 17. Thus the assessee is eligible for deduction under section 17. Thus the assessee is eligible for deduction under section 80 P (2) (d) of the act on its income received from all the above of the act on its income received from all the above of the act on its income received from all the above cooperative banks. of Rs. 410340/ banks. of Rs. 410340/- . Thus order of the . Thus order of the learned CIT – A is reversed.” 4.3 The learned counsel has also drawn our attention to the The learned counsel has also drawn our attention to the The learned counsel has also drawn our attention to the provisions of Section 80AC of the Act, which were amended with provisions of Section 80AC of the Act, which were amended with provisions of Section 80AC of the Act, which were amended with effect from 01.04.2018 to provide that deductions under Chapter effect from 01.04.2018 to provide that deductions under Ch effect from 01.04.2018 to provide that deductions under Ch VI-A under the heading "C. A under the heading "C.—Deductions in respect of certain Deductions in respect of certain
The Woodland Co Woodland Co-operative Housing 9 Society Ltd incomes" shall not be allowed unless the return is filed within the incomes" shall not be allowed unless the return is filed within the incomes" shall not be allowed unless the return is filed within the time prescribed under Section 139(1). Prior to this amendment, time prescribed under Section 139(1). Prior to this amendment, time prescribed under Section 139(1). Prior to this amendment, Section 80AC applied only to deductions under Sections 80-IA, 80- Section 80AC applied only to deductions under Sections 80 Section 80AC applied only to deductions under Sections 80 IAB, 80-IB, and 80-IC. Accordingly, for the assessment year under IC. Accordingly, for the assessment year under IC. Accordingly, for the assessment year under consideration, i.e., A.Y. 2012 consideration, i.e., A.Y. 2012–13, the extended restriction under 13, the extended restriction under amended Section 80AC has no application. amended Section 80AC has no application. For ready reference said For ready reference said section 80AC is reproduced as under: section 80AC is reproduced as under:
“[Deduction not to be allowed unless return furnished. to be allowed unless return furnished.57 80AC. Where in computing the total income of an assessee of any previous year relevant Where in computing the total income of an assessee of any previous year relevant Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after to the assessment year commencing on or after- (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80 section 80-IA or section 80-IAB or section 80- -IB or section 80-IC or section 80-ID or section 80 section 80-IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this the 1st day of April, 2018, any deduction is admissible under any provision of this the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading “C. the heading “C.-Deductions in respect of certain incomes”, Deductions in respect of certain incomes”, no such deduction shall be allowed to him unless he furnishes a return of his income for no such deduction shall be allowed to him unless he furnishes a return of his income for no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section such assessment year on or before the due date specified under sub such assessment year on or before the due date specified under sub 139.]” 4.4 We have also examined the language of Section 143(1)(a)(v) as We have also examined the language of Section 143(1)(a)(v) as We have also examined the language of Section 143(1)(a)(v) as it stood prior to 01.04.2018. It is clear that the power to disallow it stood prior to 01.04.2018. It is clear that the power to disallow it stood prior to 01.04.2018. It is clear that the power to disallow deductions for delayed filing of return under the general provisions deductions for delayed filing of return under the general provisions deductions for delayed filing of return under the general provisions of Chapter VI-A was introduced only from that date. Hence, the A was introduced only from that date. Hence, the A was introduced only from that date. Hence, the adjustment made by the CPC for A.Y. 2012 adjustment made by the CPC for A.Y. 2012–13 by invoking Section 13 by invoking Section 143(1)(a)(v) lacks statutory backing as the return was filed before 143(1)(a)(v) lacks statutory backing as the return was filed before 143(1)(a)(v) lacks statutory backing as the return was filed before the date of amendment and the extended scope of disallowance was the date of amendment and the extended scope of disallowance was the date of amendment and the extended scope of disallowance was not applicable for the said year. ot applicable for the said year.
The Woodland Co Woodland Co-operative Housing 10 Society Ltd 4.5 In light of the above discussion, we are of the considered view In light of the above discussion, we are of the considered view In light of the above discussion, we are of the considered view that, firstly, the disallowance upheld by the learned CI the disallowance upheld by the learned CI the disallowance upheld by the learned CIT(A) is not sustainable in law under the law applicable for the relevant sustainable in law under the law applicable for the relevant sustainable in law under the law applicable for the relevant assessment year and , assessment year and ,secondly , following the binding precedent of , following the binding precedent of the Tribunal in assessee’s own case t the Tribunal in assessee’s own case the adjustment made by the he adjustment made by the CPC under Section 143(1)(a) does not conform to the permissible CPC under Section 143(1)(a) does not conform to the permissible CPC under Section 143(1)(a) does not conform to the permissible scope of adjustments as envisaged under that provision,. scope of adjustments as envisaged under that provision,. scope of adjustments as envisaged under that provision,.
4.6 Accordingly, the impugned o Accordingly, the impugned order passed by the learned CIT(A) rder passed by the learned CIT(A) and the adjustment made by the CPC under Section 143(1)(a) of the and the adjustment made by the CPC under Section 143(1)(a) of the and the adjustment made by the CPC under Section 143(1)(a) of the Act are hereby set aside. The grounds raised by the assessee in the Act are hereby set aside. The grounds raised by the assessee in the Act are hereby set aside. The grounds raised by the assessee in the appeal are allowed.
In the result, the appeal of the assessee is allowed. In the result, the appeal of the assessee is allowed. In the result, the appeal of the assessee is allowed.