HARIPUR LAYALGANJ SKUS LTD.,,SOUTH TWENTY FOUR PARGANAS vs. ITO, WARD 26(4), , KOLKATA

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ITA 713/KOL/2025Status: DisposedITAT Kolkata16 July 2025AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member)3 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the amended provisions of Section 80AC, making filing of return mandatory for Section 80P deduction, are effective from April 1, 2018, and thus do not apply to Assessment Year 2017-2018. Consequently, the assessee is entitled to the deduction under Section 80P. The case was restored to the AO for re-adjudication and recomputation in accordance with law.

What were the facts?

The assessee was denied a deduction under Section 80P by the Assessing Officer on the ground that no original return of income was filed. The assessee contended that the mandatory requirement of filing a regular return for claiming Section 80P deduction, as per Section 80AC, came into effect from April 1, 2018, which was after the relevant Assessment Year 2017-2018.

What were the issues?

Whether the mandatory requirement of filing a return under Section 80AC for claiming deduction under Section 80P is applicable to Assessment Year 2017-2018, given that the amendment became effective from 01.04.2018.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: SHRI GEORGE MATHAN

Hearing: 16/07/2025Pronounced: 16/07/2025

O R D E R This is an appeal filed by the assessee against the order of the ld. Addl./JCIT(A)-10, Mumbai, dated 11.02.2025 for the Assessment Year 2017-2018.

2.

Shri T. Warsi, ld.AR appeared on behalf of the assessee and Smt. Sima Das Biswas, ld. Sr.DR appeared on behalf of the revenue.

3.

It was submitted by the ld AR that the AO had denied the assessee the benefit of deduction u/s.80P of the Act on the ground that the original return had not been filed and there was no claim in the original return. It was the submission that the assessee had admittedly not filed regular return. It was the submission that the requirement of filing of regular return was made mandatory for the purpose of claiming deduction u/s.80P of the Act as per the provisions of Section 80AC of the Act w.e.f. 01.04.2018. It was the submission that the impugned assessment year before the Tribunal are A.Y.2015-2016 & 2017-2018. It was the submission that the AO may 2 be directed to recompute the income of the assessee and grant the assessee the benefit of deduction u/s.80P of the Act as per law.

4.

In reply, ld Sr DR vehemently supported the orders of the ld.AO and ld. CIT(A).

5.

We have considered the rival submissions. A perusal of the provisions of Section 80AC of the Act for requirement of filing return for the purpose of deduction u/s.80P of the Act came into statute book w.e.f. 01.04.2018. The impugned assessment year before the Tribunal is A.Y.2017-2018. The said amended provisions of Section 80AC of the Act would not be applied to the assessment year 2017-2018. Consequently the assessee is entitled to claim deduction u/s.80P of the Act as the amendment is effective from 01.04.2018. This being so, the assessment order and the order of the ld. CIT(A) are set aside and the issues in this appeal are restored to the file of the AO for readjudication. The AO shall grant the assessee the benefit of deduction u/s.80P of the Act and recompute the same in accordance with law.

6.

In the result, appeal of the assessee is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 16/07/2025. (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 16/07/2025 Prakash Kumar Mishra, Sr.P.S.

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