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Facts
The assessee, a cooperative society, filed its return of income for AY 2022-23 on 21/10/2022, which was beyond the due date. The CPC disallowed the deduction claimed under Section 80P(2)(a)(i) on this basis. The CIT(A) confirmed the order.
Held
The Tribunal held that since the return was e-filed before the due date and Section 80P is a beneficial provision, strict compliance regarding e-verification date should be dispensed with. The assessee is eligible for the deduction.
Key Issues
Whether the disallowance of deduction under Section 80P(2)(a)(i) due to delayed e-verification, despite e-filing before the due date, is justified?
Sections Cited
80P(2)(a)(i), 139(1), 80AC, 143(1)(a), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE “SMC” BENCH : PUNE
Before: DR. MANISH BORAD
This appeal at the instance of the assessee for the Assessment Year 2022-23 (A.Y.) is directed against the order of ADDL/JCIT (Appeals)-2, Noida [“CIT(A)”], dated 13/03/2025 framed u/s. 250 of the Income Tax Act, 1961 (‘Act').
When the case called for, none appeared on behalf of the assessee. In the past, on the date of hearing fixed for 24/06/2025 & 24/07/2025, none appeared on behalf of the assessee. Under these given facts, I proceed to adjudicate the 2 ITA.No.912/PUN/2025 (Vishay Jabil and Helvoet Employees Co-op. Cr. Society Ltd.) appeal with the assistance of learned Departmental Representative (DR) and available records.
The sole ground of appeal raised by the assessee is against the findings of the Ld.CIT(A) confirming the action of the Central Processing Centre (CPC) disallowing the deduction u/s. 80P(2)(a)(i) of the Act at Rs. 49,98,880/- for not filing the return within the due date prescribed u/s. 139(1) of the Act.
Ld.DR, at the outset, submitted that since the assessee has furnished the return of income on 03/12/2022 which is beyond the prescribed due date of 07/11/2022 for A.Y. 2022-23, the assessee’s claim has rightly been denied by the CPC in the light of the provisions of section 80AC of the Act.
I have heard ld.DR and perused the records placed before me. I observe that the assessee is a cooperative society formed by the employees of the Vishay Jabil and Helvoet Pvt. Limited company. The assessee has claimed deduction u/s. 80P(2)(a)(i) of the Act at Rs. 49,98,880/- in his return of income for the A.Y. 2022-23 filed on 21/10/2022, but e-verified on 03/12/2022. In the return processed u/s. 143(1)(a) of the Act, the CPC denied the said claim made u/s. 80P(2)(a)(i) of the Act for filing the return of income after the prescribed time limit provided u/s. 139(1) of the Act. The assessee challenged the action of the CPC before the Ld.CIT(A), but failed to succeed. Before me, ld. DR has referred to section 80AC of the 3 ITA.No.912/PUN/2025 (Vishay Jabil and Helvoet Employees Co-op. Cr. Society Ltd.) Act stating that the provisions of the said section squarely applies on the given case and the assessee’s claim u/s. 80P(2)(a)(i) of the Act has rightly been denied.
On going through the provisions of section 80P(2)(a)(i), I observe that if the total income of an assessee of any previous year relevant to the assessment year commencing on or after the first day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.- Deductions in respect of certain incomes", only if assessee furnishes a return of income for such assessment year on or before the due date specified under sub-section (1) of section 139.
In the light of the above provisions, on examining the facts of the instant case, I notice that for A.Y. 2022-23, the due date for filing the return for the category of assessee is 31/10/2022 and the same was further extended to 07/11/2022. The assessee has e-filed his return of income on 21/10/2022 and the same is verifiable from the acknowledge number mentioned in the order u/s.143(1)(a) as 742980810211022. In this acknowledgment number, last six digits refer to the date of e-filing, which in this case is 21/10/2022. On filing the return, assessee can download the acknowledgment and thereafter the return has to be e-verified which can be either through digital signature or one time
4 ITA.No.912/PUN/2025 (Vishay Jabil and Helvoet Employees Co-op. Cr. Society Ltd.) password on mobile linked to Aadhar or copy of the acknowledgment can be signed and sent to the CPC located at Bangalore or other prescribed. Had the assessee opted for the first two options signing through digital signatures or mentioning one time password, the return could have been e-verified on the very same day, and claim of deduction u/s. 80P(2)(a)(i) had been allowed. But the assessee opted for the third option and sent the signed copy to the CPC, Bangalore, which was received on 03/12/2022 and that has been admitted as the e-verification date of the return. Now, in this case, if the date of e-filing i.e. 21/10/2022 is considered as date of filing of return, then section 80AC of the Act will not be applicable and assessee would be eligible to claim of deduction u/s. 80P(2)(a)(i). But if the date of e-verification is considered as 03/12/2022, then the case of the assessee falls in section 80AC of the Act.
However, under the given facts and circumstances of the case, I am of the considered view that since the assessee has e-filed the return on 21/10/2022 which is much prior to the due date of filing of return u/s. 139(1) of the Act i.e. 07/11/2022 and that section 80P of the Act is a beneficial provision, a very strict compliance should be dispensed with and thus, Ld.CIT(A) erred in confirming the action of CPC taking the date of e-verification as date of filing the return.
Findings of the Ld.CIT(A) is set aside and the grounds of 5 ITA.No.912/PUN/2025 (Vishay Jabil and Helvoet Employees Co-op. Cr. Society Ltd.) appeal raised by the assessee are allowed with a direction to Jurisdictional Assessing Officer to allow the claim of the assessee made u/s. 80P(2)(a)(i) of the Act. The effective grounds of appeal raised by the assessee are allowed.
In the result, appeal of the Assessee is allowed.
Order pronounced in the open Court on 10.09.2025.