PASCHIM PUTIARY COOPERATIVE CREDIT SOCIETY LTD., ,KOLKATA vs. ITO, WARD 25(1), , KOLKATA

Dissatisfied with the above order, the assessee is in appeal before authorities below. However, the appeal of the assessee was dismissed by NFAC, Delhi vide order dated 26.03.2024. At the time of hearing, the ld. AR submitted that the assessee is a co-operative society registered under West Bengal Cooperative Societies Act, 2013 amended upto date. For the assessment year under consideration, the return of income has been filed by the assessee belatedly that is beyond the date prescribed u/s 139(1) of the Act. Details of which are given below: AY Due date Date of filing 2018-19 31.08.2018 30.03.2019

The return of the assessee for the year under consideration was processed u/s 143(1) of the Act by the CPC wherein the deduction claimed by the assessee u/s 80P of the Act was disallowed. In the appellate proceedings, the ld. CIT(A) stated that assessee has filed return of income belatedly and accordingly, the ld. CIT(A) confirmed the rejection of claim for deduction u/s 80P of the Act made by the AO in the intimation issued u/s 143(1) of the Act. In this regard, the ld. AR submitted that impugned adjustment made by way of disallowance of claim u/s 80P of the Act is beyond power of Assessing Officer during the year under consideration. The ld. AR invited our attention to the provisions of section 143(1)(a)(v) of the Act and submitted that the power to disallow the claim u/s 80P has been given to the AO w.e.f. 01.04.2021 by Finance Act, 2021 relevant to A.Y. 2021-22. Accordingly, the ld. AR submitted that the CPC was not empowered to disallow the claim of the assessee u/s 80P of the Act for the year under consideration while processing return u/s 143(1) of the Act. On the contrary, the ld. DR supported the order passed by the ld. CIT(A).

We have heard rival contention of the parties and perused the material available on record in the instant case. There is no dispute that the assessee had made claim u/s 80P of the Act. The ld. AR also brought to our notice that the power to make disallowance of deduction under the head “C – deduction in respect of certain incomes” under Chapter VIA while processing the return u/s 143(1) of the Act has been given to the AO by Finance Act, 2021 w.e.f. 01.04.2021 relevant to A.Y. 2021-22. This provision was introduced from A.Y. 2021-22 but the same cannot be given effect to instant assessment year 2018-19. Therefore, there was no power available with CPC to disallow the claim made under “C – deduction in respect of certain income” under chapter VIA. Hence, for all the reasoning mentioned above, we are of the view that the CPC could not have disallowed the deduction claimed by the assessee u/s 80P of the Act for the assessment year under consideration while processing the return of income u/s 143(1) of the Act. Accordingly, we set aside the order passed by the ld. CIT(A) on this issue for the assessment year under consideration and direct the CPC/AO to delete the disallowance of claim for deduction made u/s 80P of the Act. 6. In the result, the appeal of the assessee is allowed. Kolkata, the 16th May, 2025. [Rakesh Mishra]

CIT(DR),