FT 92 THE VILUPURAM AND TINDIVANAM GOV ARTS COLLEGE TEACHING AND NON-TEACHING STAFFS CO-OP SOCIETY,VILUPURAM vs. INCOME TAX OFFICER, VILUPURAM

आयकर अपीलीय अिधकरण‘सी’ ायपीठ, चेई।
IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI
ी मनु कुमार िग र, ाियक सद एवं एस. आर. रघुनाथा, लेखा सद के सम(
BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER

आयकर अपील सं./ ITA No.2046/Chny/2025
िनधा8रण वष8 /Assessment Year: 2019-20

FT 92 The Vilupuram and Tindivanam
Govt. Arts College Teaching and Non-
Teaching Staffs Co-op. Society,
Kilperumpakkam 605 602,
Viluppuram.

[PAN: AAAAF4718K]

Vs.

The Income Tax Officer,
Ward-1,
Vilupuram.

(अपीलाथ/Appellant)

( यथ/Respondent)

अपीलाथE की ओर से/ Appellant by :
Shri G. Reddi Prakash, C.A.
GHथE की ओर से /Respondent by :
Ms. R. Anita, Addl. CIT
सुनवाई की तारीख/Date of Hearing
:
18.09.2025
घोषणा की तारीख /Date of Pronouncement
:
10.10.2025

आदेश / O R D E R

PER MANU KUMAR GIRI (Judicial Member):

This appeal by the assessee is directed against order of the Ld.
Commissioner of Income-tax (Appeals), ADDL/JCIT(A)-5 Delhi [in short
'the Ld. CIT(A)'] dated 06.02.2025 for assessment year 2019-20. 2. There is a delay of 450 days in filing this appeal. The assessee has filed petition along with affidavit for condonation of delay stating therein the reasons for belated filing of the appeal. On perusal of the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of this appeal. Hence, we condone the FT 92 – The Vilupuram.
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delay in filing this appeal and proceed to dispose of the appeals on merits.

(ii)
The disallowance u/s 80(P) was outside the scope and ambit of section 143(1)(a)(iv) for A.Y. 2019-20. It is seen from intimation order that that the extended due date of filing of original return of income for the AY 2019-20 was 31/08/2019, however the appellant has filed its return of income on 30/11/2020. Thus, the return of income has not been filed within the due date as prescribed in section 139(1) of the Act. Accordingly, as per the provisions of section 80AC of the Act, the claim of deduction u/s 80P has been rejected by CPC. As per the provisions of section 80AC(ii), no deduction under any provisions of Chapter VIA under the head "C-deduction in respect of certain incomes will be allowed w.e.f. 01/04/2018 unless an assessee filed the return of his income on or before the due date specified under sub section (1) of section 139. Since the said provision was effective from 01/04/2018, tie assessment year involved in the present case falls within the purview of amended section 80AC of the Act as the return of income
FT 92 – The Vilupuram.
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was filed beyond the extended due date. Thus, since the return has been filed beyond the extended due date u/s 139(1) of the Act, the appellant is not eligible to claim deduction u/s 80P r.w.s. 80AC, the only remedy available lies in the machinery provisions of the Act rather seeking legal remedy. Such provisions are found in section 119(2)(b) which enables an assessee to approach the Board for seeking relief in such cases.

ii) Villupuram District Revenue Department Employees Coop Thrift and Credit
Society Vs ITO [ITA No.51/Chny/2024 for AY 2019-20 dated 31.05.2024]

AR drew our attention to the relevant amendment made by Finance Act, 2021. The Ld. Sr. DR relied on impugned order wherein learned first appellate authority has relied on the provisions of Sec.80AC to confirm the adjustment so made in the intimation issued by CPC. Having heard rival submissions, the appeal is disposed-off as under.

143(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:— (a) the total income or loss shall be computed after making the following adjustments, namely:—

(i) any arithmetical error in the return;
(ii) an incorrect claim, if such incorrect claim is apparent from any information in the return;
(iii) 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 subsection (1) of section 139;
(iv) disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return;
(v) disallowance of deduction claimed under sections 10AA. 80-IA. 80-IAB.
80- IB. 80-IC. 80-ID or section 80-IE. if the return is furnished beyond the due date specified under sub- j section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16
which has not been included in computing the total income in the return:

It could be seen that sub-clause (v) covers only specified Sections and do not cover Sec.80P. In other words, no adjustment of deduction claimed u/s 80P could have been made while processing the return of income.

Rationalisation of the provision relating to processing of returned income and issuance of notice under sub-section (2) of section 143 of the Act.
FT 92 – The Vilupuram.
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The existing provisions of clause (a) of sub-section (1) of section 143 of the Act provides that at the time of processing of return of income made under section 139, or in response to a notice under sub-section (1) of section 142, the total income or loss shall be computed after making the adjustments specified in clauses (i) to (vi) therein.

It is proposed to amend the following provisions of sub-section (1) of section 143 of the Act,-

(i)
Amend sub-clause (iv) of clause (a) of sub-section (1) of the section 143
of the Act, to allow for the adjustment on account of increase in income indicated in the audit report but not taken into account in computing the total income.
(ii)
Amend sub-clause (v) of clause (a) of sub-section (1) of the section 143
of the Act so as to give consequential effect to amendment carried out in section 80 AC vide Finance Act, 2018. (iii)
Amend the provisions of section 143 to reduce the time limit for sending intimation under sub-section (1) of section 143 of the Act from one year to nine months from the end of the financial year in which the return was furnished.

Consequently, it is also proposed to reduce the time limit for issue of notice under sub-section (2) of section 143 of the Act from six months to three months from the end of the financial year in which the return is furnished.

These amendments will take effect from 1st April, 2021. 5. It could thus be seen that the enabling provisions allowing specified adjustment for Sec. 80P u/s 143(1)(a) has been brought on statute only with effect from 01.04.2021 and before that no such adjustment of deduction u/s 80P could have been done by the CPC u/s 143(1)(a) even if the return of income was filed beyond due date as specified u/s 139(1). No doubt, the provisions of Sec.80AC mandate denial of deduction u/s 80P even for AY 2018-19. However, in our considered opinion, without there being corresponding enabling provisions u/s 143(1)(a), no such adjustment could have been made by CPC for AY 2018-19. The same is amply clear from the memorandum explaining the provisions in the Finance Bill, 2021 as extracted above. Considering the same, we direct revenue to grant deduction u/s 80P as claimed by the assessee in the return of income. No other ground has been urged before us.

Credit Society Vs ITO [ITA No.51/Chny/2024 for AY 2019-20 dated
31.05.2024held as under:
3.0
The only issue under consideration is the action of the Ld.CIT(A) in confirming action of CPC, Bangalore by which a deduction of Rs. 17,15,750/- was denied under 143(1)(a)(v). In the instant case return of income for AY-
2019-20 was filed on 16.10.2020 as belated return u/s 139(4). The Ld.CIT(A) has concurred with the findings of CPC that u/s.80AC, deduction u/s.80P shall be allowed only to assessee if the return is filed in time u/s 139(1). It is the case of the assessee that the law has been wrongly interpreted by the revenue has the impugned provision enabling CPC to make adjustments kick started only w.e.f 01.04.2021. 4.0
In support of its contentions, the appellate has relied upon the decision of the Hon’ble Bangalore ITI in the case of Villupuram Credit Society, inter- alia holding as under:-

It could thus be seen that the enabling provisions allowing specified adjustment for Sec. 80P u/s 143(1)(a) has been brought on statute only with effect from 01.04.2021 and before that no such adjustment of deduction u/s 80P could have been done by the CPC u/s 143(1) (a) even if the return of income was filed beyond due date as specified u/s 139(1). No doubt, the provisions of Sec.0AC mandate denial of deduction u/s 80P even for AY2018-19, However, in our considered opinion, without there being corresponding enabling provisions u/s 143(1) (a), no such adjustment could have been made by CPC for AY
2018-19, The same is amply clear from the memorandum explaining the provisions in the Finance Bill, 2021 as extracted above. Considering the same, we direct revenue to grant deduction u/s 80P as claimed by the assessee in the return of income."

Cooperative Credit Society Ltd. Vs. DCIT [2022] 138 taxmann.com 571
(Madras) dated 07.04.2021. 9. We find that the present issue in question is squarely covered by the orders of the Co-ordinate Benches of Tribunal referred supra. The judgment of the Hon’ble Juri ictional High Court in the case of AA520
Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd.
Vs. DCIT [2022] 138 taxmann.com 571 (Madras) is not applicable in view of amendment in Section 143(1)(a) of the Act w.e.f 01.04.2021. Hence, respectfully following the Co-ordinate Bench orders referred supra, we direct the A.O to allow the deduction u/s. 80P of the Act to the assessee.

Order is pronounced on 10th day of October, 2025 at Chennai. (एस. आर. रघुनाथा)
(S.R. Raghunatha)
लेखा
लेखा
लेखा
लेखा सदय
सदय
सदय
सदय /Accountant Member
(मनु कुमार िग र)
(Manu Kumar Giri)
ाियक सद / Judicial Member
चेनई/Chennai, दनांक/Dated: 10th October, 2025. EDN/-
आदेश की ितिलिप अ ेिषत/Copy to:
1. अपीलाथ/Appellant
2. थ/Respondent
3. आयकर आयु/CIT, Chennai
4. िवभागीय ितिनिध/DR
5. गाड फाईल/GF