CHUNAKHALI SAMABAY KRISHI UNNAYAN SAMITY LTD.,BERHAMPORE, MURSHIDABAD vs. I.T.O., WARD - 56(3),, MURSHIDABAD

ITA 943/KOL/2025Status: DisposedITAT Kolkata08 December 2025AY 2020-2021Bench: SHRI SONJOY SARMA (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amendment to Section 143(1)(a)(v), which allows disallowance of Chapter VI-A deductions (including Section 80P) during processing, came into effect from April 1, 2021. Therefore, for Assessment Year 2020-21, the Assessing Officer did not have the power to make such a prima facie adjustment under Section 143(1). Such disallowance could only be made during a scrutiny assessment under Section 143(3).

What were the facts?

The assessee, a co-operative society, claimed a deduction under Section 80P which was disallowed by the CPC under Section 143(1) without providing an opportunity of being heard, leading to an addition of Rs. 2,73,300 to its income. The Ld. CIT(A) dismissed the assessee's appeal after noting an updated return was filed and considering Section 80AC.

What were the issues?

Whether the disallowance of Section 80P deduction during processing under Section 143(1) was valid for AY 2020-21, considering the effective date of the relevant amendment to Section 143(1)(a)(v).

Which sections of the Income-tax Act were involved?

Section 250,Section 80P,Section 143(1)(a),Section 143(1),Section 80AC,Section 139(1),Section 143(3),Section 10AA,Section 80-IA,Section 80-IAB,Section 80-IB,Section 80-IC,Section 80-ID,Section 80-IE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Addl/JCIT(A)-9, Delhi [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2020-21 dated 04.03.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. That on the facts and in the circumstances of the case, the Ld. AddI/JT. CIT(A) erred in passing the order without considering the facts of the case and thereby, erred in not allowing the deduction claimed u/s.80P, which was wrongly added in the intimation u/s.143(1)(a) without issuing any show caus

The order continues below.

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