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Facts
The assessee filed its Income Tax Return for AY 2022-23 on 05.11.2022. The CPC disallowed the assessee's claim for deduction under Section 80P on the ground that the return was filed after the due date. The assessee's appeal before the CIT(A) was dismissed due to delay.
Held
The Tribunal held that the due date for filing the return was extended by CBDT Notification No. 20/2022 to 07.11.2022, and the assessee had filed the return within this extended period. The Tribunal also found that the CIT(A) should have condoned the delay. Therefore, the assessee is eligible for the deduction.
Key Issues
Whether the disallowance of deduction under Section 80P by CPC was justified when the return was filed within the extended due date? Whether the CIT(A) was justified in dismissing the appeal on account of delay without condoning it?
Sections Cited
250, 143(1), 80P, 139(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: DR.DIPAK P. RIPOTE & SHRI VINAY BHAMORE
Assessment Year: 2022-23 Forest Trails Highlands 1 to 6 V The Income Tax Officer, Co-operative Housing Society s Ward-2(4), Pune. Limited, Society Office Forest Trails Highlands, Near Mulshi Lake Bhugaon, Mulshi – 412115. Maharashtra. PAN: AAAAF5056C Appellant/ Assessee Respondent / Revenue Assessee by Shri Hari Krishan – AR Revenue by Smt. Sonal L Sonkavde –Addl.CIT(DR) Date of hearing 02/06/2025 Date of pronouncement 04/06/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee directed against the order of ld.Addl./Joint Commissioner of Income Tax(Appeal)-11, Delhi under section 250 of the Income Tax Act, 1961 dated 27.02.2025 for the A.Y.2022-23 emanating from order under section 143(1) of the Act, dated 24.05.2023.
Submission of ld.AR : 2. Ld.AR for the Assessee filed a paper book containing 113 pages. Ld.AR submitted that Assessee had filed Return of Income on 05.11.2022 for A.Y.2022-23. Ld.AR invited our attention to Page No.1 – 77 of the paper book to demonstrate that the Return of Income was filed by 05.11.2022. Ld.AR submitted that CBDT vide notification no.20/2022 dated 26.10.2022 had extended the due date for filing Return of Income to 07.11.2022. Ld.AR took us through the said notification which is at page no.113 of the paper book. Ld.AR submitted that CPC has disallowed assessee’s claim only on one ground that Return of Income was not filed within time. Ld.AR submitted that the adjustment proposed are bad in law as Return was filed in time and assessee had also claimed deduction u/s.80P of the Act.
Submission of ld.DR : 3. Ld.DR for the Revenue accepted that due date was extended.
Findings & Analysis : 4. We have heard both the parties and perused the records. We have perused the Return of Income filed by the Assessee(Paper Book Page No.1 to 77) and observed that Return of Income was filed on 05.11.2022. We have studied the notice which was issued by CPC before making the adjustments. The relevant paragraph of the notice is as under :
4.1 Thus, the CPC has disallowed the assessee’s claim of deduction u/s.80P of the Act, on the ground that Return of Income was not filed within time. However, it is observed that CBDT vide notification no.20/2022 has extended the date of filing return to 07.11.2022. The Assessee has filed Return of Income on 05.11.2022. In these facts and circumstances of the case, Return of Income was filed u/s.139(1) within the time allowed under section 139(1), as extended by CBDT Notification No.20/2022. Therefore, the CPC has erred in not allowing Assessee’s claim of deduction u/s.80P of the Act. Accordingly, ld.Assessing Officer is directed to allow the deduction claimed by the assessee u/s.80P of the Act.
4.2 In this case, Assessee had filed an appeal before the ld.CIT(A), however, ld.CIT(A) dismissed the appeal of the assessee on account of delay.
4.3 There was a valid reason for delay. Therefore, ld.CIT(A) should have condoned the delay. The substantial justice is more important than procedural delay. Be it as it may be, we have already held that Assessee is eligible for deduction u/s.80P of the Act.
In the result, appeal of the Assessee is allowed. Order pronounced in the open Court on 04 June, 2025.