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Facts
The assessee, a Cooperative Society, filed its Income Tax Return for A.Y. 2019-20 after the due date prescribed under Section 139(1). The Central Processing Centre (CPC) processed the return under Section 143(1)(a) and disallowed the deduction claimed under Section 80P(2)(a)(i), invoking Section 80AC(ii) due to the delayed filing. The Ld. CIT(A) confirmed this disallowance.
Held
The Tribunal held that prior to the amendment by the Finance Act, 2021 (effective 01.04.2021), the CPC did not have the power under Section 143(1)(a) to disallow deductions under Section 80P by invoking Section 80AC for delayed returns. As the intimation order was dated 10.03.2021 (before the amendment's effective date), the adjustment by CPC was deemed unjustified and without jurisdiction. The Tribunal reversed the CIT(A)'s finding and directed the Assessing Officer to allow the assessee's claim under Section 80P.
Key Issues
Whether the Central Processing Centre had the jurisdiction under Section 143(1)(a) to disallow the deduction claimed under Section 80P by invoking Section 80AC for a delayed return, specifically for A.Y. 2019-20, prior to the amendment by the Finance Act, 2021.
Sections Cited
250, 143(1), 143(1)(a), 80AC, 80AC(ii), 80P, 80P(2)(a)(i), 139(1)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2019-20 is directed against the order dated 24.06.2025 of Addl/JCIT(A), Thiruvanantpuram passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Intimation Order dated 10.03.2021 passed u/s.143(1) of the Act.
When the case called for, none appeared on behalf of the assessee. However, written submission dated 15.09.2025 is placed on record wherein the assessee has requested to decide the appeal on the basis of written submission. We therefore
The sole grievance of the assessee is that ld.CIT(A) erred in applying the provisions of section 80AC of the Act thereby confirming the disallowance of deduction u/s.80P(2)(a)(i) of the Act made by the Central Processing Centre in the Intimation u/s.143(1)(a) of the Act.
Ld. DR vehemently argued supporting the orders of the lower authorities.
We have heard the ld. DR and perused the record placed before us. We observe that the assessee is a Cooperative Society and return of income for A.Y. 2019-20 has been furnished on 12.11.2020 after the due date prescribed u/s.139(1) of the Act, i.e. on 31.08.2019. The Central Processing Centre processed the return applying section 143(1)(a) of the Act and denied the claim of deduction u/s.80P(2)(a)(i) of the Act on the ground that return has been filed after the prescribed due date u/s.139(1) of the Act and thus invoked the provisions of section 80AC(ii) of the Act.
We on going through the written submission filed by the assessee find that assessee has placed reliance on the decision of this Tribunal in the case of Shiv Sahyadri Nagari Sahakari Patsanstha Maryadit in order dated 07.11.2024 as well as the decision of Coordinate Bench, Chandigarh in the case of Lanjani Cooperative Agri Service Society Ltd. vs. DCIT (2023) 146 taxmann.com 468 (Chandigarh- Trib.).
On perusal of these decisions of Coordinate Benches, it has been consistently held that prior to the Amendment brought in by the Finance Act, 2021 amending sub-clause (v) of section143(1)(a) of the Act, CPC was not vested with the power for making the disallowance u/s.80AC of the Act denying the deduction u/s.80P of the Act on account of delay in furnishing the Income-tax return. The instant case pertains to A.Y. 2019-20 and the return has been processed by the CPC vide order dated 10.03.2021 which is prior to the date of amendment effective from 01.04.2021 brought in by the Finance Act, 2021.
Under these given facts and circumstances, we are of the considered view that since CPC was not having powers to make the alleged prima-facie adjustment denying u/s.80P of the Act for the delay in filing the return of income as provided u/s.80AC of the Act, therefore, the alleged adjustment made by CPC is not justified and without jurisdiction. We accordingly reverse the finding of ld.CIT(A) and allow the grounds of appeal raised by the assessee directing the ld. Jurisdictional Assessing Officer to allow the claim made by the assessee u/s.80P of the Act.
In the result, appeal filed by the assessee is allowed.
Order pronounced on this 10th day of October, 2025.