DAIVAGNA CREDIT CO-OPERATIVE SOCIETY LIMITED,DAVANGERE vs. DEPUTY COMMISSIONER OF INCOME TAX, CPC, BANGALORE

This appeal at the instance of the assessee is directed against CIT(A)’s order dated 18.05.2022. The relevant assessment year is 2018-2019.

The solitary issue argued is whether the CIT(A) is justified in confirming the disallowance u/s 80P of the I.T.Act made by the Assessing Officer, Centralized Processing Centre, u/s 143(1) of the I.T.Act for the technical default in not filing the return of income u/s 139(1) of the I.T.Act.

The brief facts of the case are as follows: The assessee is a Co-operative Society, engaged in the business of providing credit facilities to its members. For the assessment year 2017-2018, the return of income was filed

Aggrieved by the intimation passed u/s 143(1) of the I.T.Act, the assessee preferred an appeal before the first appellate authority. The CIT(A) rejected the contentions raised and dismissed the appeal of the assessee.

Aggrieved by the order of the CIT(A), the assessee has filed the present appeal before the Tribunal. The assessee has filed two sets of paper book comprising of 117 pages inter alia enclosing therein the case laws relied on, written submissions filed before the lower authorities, copy of the acknowledgment of the income-tax return filed, etc. The learned AR submitted that for the relevant assessment year, namely, A.Y. 2018- 2019, the AO, CPC, could not have made an adjustment u/s 143(1) of the I.T.Act. It is submitted that section 143(1)(a)(v) of the I.T.Act has been amended vide Finance Act, 2021 to give effect to section 80AC of the I.T.Act enabling the AO, CPC to disallow deduction u/s 80P of the I.T.Act (when return of income was not filed within the due date u/s 139(1) of the . M/s.Daivagna Credit Co-op Society Limited. I.T.Act). In this context, the learned AR relied on the order of the Chandigarh Bench of the Tribunal in the case of The Lanjani Co-operative Agri Service Society Ltd. & Others v. The DCIT in (order dated 30.08.2022). However, the learned AR fairly submitted that deduction claimed u/s 80P(2)(a)(i) of the I.T.Act for an identical amount was also denied in the assessment order completed u/s 143(3) of the I.T.Act. The learned AR placed on record copy of the assessment order completed u/s 143(3) of the I.T.Act. It was stated that as against the assessment order completed u/s 143(3) of the I.T.Act, an appeal is pending adjudication before the first appellate authority.

The learned Departmental Representative supported the orders of the AO,CPC and the CIT(A). Further, the learned DR submitted that since the adjustment made u/s 143(1) of the I.T.Act, was also subjected to disallowance in assessment completed u/s 143(3) of the I.T.Act, the issue raised in this appeal has been infructuous.

We have heard rival submissions and perused the material on record. The claim of the assessee amounting to Rs.60,97,090 was disallowed in the impugned intimation u/s 143(1) of the I.T.Act. We notice that in the instant case, the scrutiny assessment has been completed u/s 143(3) of the I.T.Act vide order dated 26.02.2021. On perusal of the said scrutiny assessment, we notice that the claim of deduction u/s 80P of the I.T.Act was also denied in the said scrutiny

In the result, the appeal filed by the assessee is dismissed.