I T S P M M SEVAKANCHI SAHAKARI PATSANSTHA MARYADIT,PUNE vs. THE INCOME TAX OFFICER, WARD-2(10, KOLHAPUR, KOLHAPUR

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ITA 1772/PUN/2024Status: DisposedITAT Pune13 March 2025AY 2018-19Bench: Dr. MANISH BORAD (Accountant Member)4 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Central Processing Centre (CPC)'s power to make *prima facie* adjustments for disallowing deductions under Chapter VI-A, specifically Section 80P, by invoking sub-clause (v) of Section 143(1)(a) was enabled only with effect from 01.04.2021. Since the impugned intimation was processed on 14.06.2019, the adjustment was outside the CPC's jurisdiction and thus deserved to be deleted.

What were the facts?

The assessee's deduction under Section 80P was disallowed in an intimation issued under Section 143(1) of the Income-tax Act, 1961, dated 14.06.2019. The assessee challenged this, arguing that a *prima facie* adjustment for Chapter VI-A deductions under Section 143(1)(a)(v) was not permissible at the time the intimation was processed.

What were the issues?

Whether the Central Processing Centre (CPC) had the jurisdiction to make a *prima facie* adjustment disallowing deduction under Section 80P in an intimation issued under Section 143(1) for an assessment year prior to the enabling amendment effective 01.04.2021.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(1),Section 80P,Section 143(1)(a),Section 80A(5),Section 143(1)(a)(v)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, PUNE

Before: Dr. MANISH BORAD

For Appellant: Shri Sarang Gudhate
For Respondent: Shri Aviyogi Ambadkar
Hearing: 13.03.2025

आदेश/ORDER

PER DR. MANISH BORAD, ACCOUNTANT MEMBER :

1.

This appeal at the instance of the assessee is directed against the order of Ld. CIT Appeal Additional./JCIT(A)-2 u/s 250 of the Income-tax Act, 1961 dated 28.06.2024 which is arising out of Order passed u/s.143(1) of the Act dated 14.06.2019.

2.

Assessee has raised following grounds of appeal:-

1. Under the facts and circumstances of the case, Ld. Assessing Officer has erred in disallowing deduction u/s 80P in Intimation u/s 143(1) as only Prima facie adjustment is permissible in intimation u/s 143(1).

2. Under the facts and circumstances of the case, Ld. Assessing Officer Is erred in not appreciating the fact that section 80P is benevolent hence needs to be interpreted liberally without looking into procedural non compliances.

3. Under the facts and circumstances of the case, Ld. Assessing Officer is erred in not appreciating the fact that provision of section 80A(5) is inserted by Finance Act 2018 and should be applicable from Assessment Year 2019-20.

4. The appellant craves the permission to add, amend, modify, revise, substitute, delete or alter any/all of the above grounds of appeal if deemed necessary at the time of hearing of the appeal.

3. Ld. AR of the assessee has filed the written submission and requested for adjudicating the case on the basis of written submissions. In these written submissions Ld. counsel for the assessee submitted that various coordinating benches of this Tribunal have consistently held that powers with the CPC for making prima facie adjournment u/s 143(1)(a) of the Act regarding disallowance under provisions of Chapter VIA has been introduced w.e.f. 01.04.2021 and therefore impugned addition deserves to be deleted as the CPC has denied the deduction to the assessee u/s 80P of the Act in the order dated 14.06.2019.

4. On the other hand Ld. DR failed to controvert the submissions made by Ld. AR in the written submission.

5. I have heard Ld. DR and perused the record placed before us. The powers with CPC to make Prima Facie adjustment in sub-clause (v) of section 143(1)(a) of the Act for disallowing deduction claimed under any of the provisions of Chapter VI A under the heading “C-deductions in respect of certain incomes” has been enabled w.e.f. 01.04.2021. Since in the instant case CPC had denied the 80P deduction in the order u/s 143(1)(a) of the Act processed on 14.06.2019 but such adjustment falls outside the jurisdiction held by CPC and thus deserves to be deleted. I find support from following decision of coordinate Benches:- a. Sai Prerana Co-Op. Credit Society Ltd. Vs. Income Tax Officer (2023) 37 NYPTTJ 264 (Mum) b. Lanjani Co-operative Agri Society Ltd [2022] 219 ITJ (Chd) 750 c. Manoh Co-Operative Agriculture Service Society Ltd. Vs. Income Tax Officer (2025) 39 NYPTT) 165 (Chd) d. Chaplah Co-Operative Agricultural Service Society Ltd. Vs. Income Tax Officer (2024) 38 NYPTT) 1292 (Chd)

6.

Respectfully following the above decisions and taking a consistent view, I allow the grounds of appeal No. 1, 2 and 3 raised by the assessee and direct Ld. JAO to allow the deduction u/s 80P of the Act claimed by assessee in the return of income.

7. Ground No. 4 is general in nature which needs no adjudication.

8.

In the result appeal of the assessee is allowed as per terms indicated above.

Order pronounced on this 27th day of March, 2025.

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