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Facts
The assessee, a co-operative housing society, filed its return of income within the due date for audited accounts (30/09/2019). The CPC made an adjustment under section 143(1) disallowing claims for deduction under sections 80P(2)(d) and 80P(2)(c), based on the erroneous ground that the return was filed beyond the due date.
Held
The Tribunal held that prior to the Finance Act 2021 amendments, there was no scope for adjustment under section 143(1)(a) for disallowing deductions claimed under section 80P. Furthermore, even with the amendments, such an adjustment is only permissible if the return is filed beyond the due date, which was not the case here.
Key Issues
Whether the CPC can disallow deductions under section 80P in a section 143(1) adjustment on the grounds of late filing when the return was filed within the due date.
Sections Cited
143(1), 80P(2)(d), 80P(2)(c), 80P, 10AA, 80AIA, 801AB, 80IB, 80IC, 80ID, 80IE, 80IP
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH
आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 15/12/2023 passed by Additional /JCIT(A)-4, Delhi in relation to the adjustment made u/s.143(1) for disallowing the claim of deduction u/s.80P(2)(d) of Rs.9,30,956/- and Rs.50,000/- u/s. 80P(2)(c).
The assessee has filed its return of income on 18/09/2019 and due date for filing of return of income
2 Twinstar Jupiter Coop Housing Society Ltd u/s.139(1) in the case of audited accounts was on 30/09/2019. The assessee being a co-operative housing society, its accounts has to be necessarily audited u/s. 81 of Maharashtra Co-operative Housing Societies Act, 1960. Thus, return of income filed by the assessee was within due date as the due date of return of income was on or before 30/09/2019, which was the due date u/s.139(1). The CPC has made the adjustment disallowing the claim u/s.80P on the ground that return has been filed beyond the due date. Prior to the amendment made by the Finance Act 2021 w.e.f. A.Y. 2021-22, there was no scope for making any adjustment u/s.143(1)(a) except for the claim of deduction claimed u/s. u/s.10AA, 80AIA, 80IAB, 80IB, 80IC, 80ID or Section 80IE. There was no such provision to disallow the claim of deduction u/s.80IP. Further, even after the amendment such an adjustment can be made, only if return has been filed beyond the due date, which is not the case here. Accordingly, the adjustment of 80P(2)(d) made by the CPC and as confirmed by the First Appellate Authority is deleted.
In the result, appeal of the assessee is allowed.
Order pronounced on 28th Jun, 2024.