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Facts
The assessee, Suryavanshi Kshatriya Sahakari Patpedhi Maryadit, filed its return of income on 30-10-2018 for AY 2018-19. The lower authorities confirmed the disallowance of deduction under Section 80P of the Income Tax Act, 1961, on the grounds that the return was filed beyond the statutory due date.
Held
The Tribunal held that the CBDT Circular extended the due date for filing the return of income to 31-10-2018. As the assessee filed its return on 30-10-2018, which was within the extended due date, the deduction under Section 80P is allowable.
Key Issues
Whether the disallowance of deduction u/s 80P is justified when the return was filed within the extended due date as per CBDT circular.
Sections Cited
80P, 80AC, 139(1), 234A
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Income Tax Appellate Tribunal, “J(SMC
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. Addl./JCIT(A)-1, Hyderabad [hereinafter ‘the ld. CIT(A)’] dated 29/06/2024, pertaining to AY 2018-19.
The grievance of the assessee reads as under:- “1. A. On the facts and circumstances of the case and in law the learned CIT(A) erred in confirming the disallowance of deduction u/s 80P of I.T. Act, 1961 on the ground that the return of income is filed beyond statutory due date specified u/s 139(1) and as such as per provisions of section 80AC of I.T. Act, 1961 the deduction u/s 80P is not allowable. B. The learned CIT(A) erred in not appreciating the fact that the appellant has filed the return of income on 30-10-2018 and as per clause (a) of explanation 2 to section 139(1) of the Act the due date for submission of return is 30-09-2018 which was extended up to 31-10-2018 by circular dt 08-10-2018 F. No-225/358/2018/ITA-II.
C. The appellant therefore submits that since the return of income is filed within the statutory due date the deduction u/s 80P needs to be allowed. 2. The appellant craves to leave, add, alter or amend any grounds of appeal before or at the time of hearing.”
The solitary reason for the denial of deduction u/s 80P of the Act is that, according to the lower authorities, the assessee did not file its return of income u/s 139(1) of the Act. Therefore, it is eligible for the claim of deduction.
The following CBDT Circular shall settle the quarrel in favour of the assessee and against the revenue:- F.No. 225/358/2018/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 8th of October, 2018 Order under Section 119 of the Income-tax Act, 1961 On consideration of representations from various stakeholders for further extension of due date being 30th September, 2018 for purpose of filing return of income as well as various reports of audit pertaining to Assessment Year 2018-2019 for assessees covered under clause (a) of Explanation 2 of section 139(1) of the Income-tax Act, 1961 (Act), the Board, in partial modification of its order dated 24.09.2018 in file of even number, hereby, further extends the due date for filing of return of income and reports of audit pertaining to Assessment Year 2018-2019 from 15th October, 2018 to 31st October, 2018. However, as specified in earlier order dated 24.09.2018, assessees filing their return of income within the extended due date shall be liable for levy of interest as per provisions of section 234A of the Act.” 5. It can be seen from the above that for the year under consideration, the Board has extended the date from 30/09/2018 to 31/10/2018 and the undisputed fact is that the assessee has filed its return of income on 3 30/10/2018, which is well within the extended due date. Therefore, the AO is directed to allow the claim of deduction u/s 80P of the Act. 6. In the result, appeal of the assessee is allowed.