Loading judgment…
Facts
The assessee's appeal is against the order of the CIT(A) which upheld the CPC's adjustment made under section 143(1)(a) of the Income Tax Act, 1961. The adjustment denied deduction under section 80P due to delayed filing of the return of income, invoking section 80AC.
Held
The Tribunal held that the CPC did not have the power to make disallowance under section 80AC prior to the amendment effective from April 1, 2021. Since the intimation was passed before this amendment, the disallowance is uncalled for.
Key Issues
Whether the CPC had the authority to disallow deduction under Section 80P by invoking Section 80AC for delayed filing of the return prior to the amendment effective from 01.04.2021?
Sections Cited
143(1)(a), 250, 80P, 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR
Before: DR. MANISH BORAD
This appeal at the instance of the assessee is directed against the order of ADDL/JCIT (Appeals)-3, Delhi [“CIT(A)”], dated 13/12/2023 passed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of intimation dated 03.01.2021 passed u/s. 143(1)(a) of the Act for the Assessment Year 2019-20. (A.Y.)
When the case called for, none appeared on behalf of the assessee. I, therefore, proceed to adjudicate the appeal exparte qua assessee with the assistance of Ld. Departmental
2 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) Representative (DR) and the statement of facts placed on record. I observe that the sole grievance of the assessee is against the prima-facie adjustments made by the CPC in the intimation issued u/s. 143(1)(a) of the Act denying deduction u/s. 80P of the Act on account of delay in filing the return of income by invoking section 80AC of the Act.
It is stated that case of the assessee is covered by plethora of decisions consistently holding that such power to make the alleged disallowance has been conferred to the CPC w.e.f. 01.04.2021 and therefore, the impugned disallowance deserves to be deleted.
On the other hand, Ld. DR supported the order of the Ld.CIT(A).
I have heard Ld. DR and perused the records placed before me. The only grievance of the assessee is against the disallowance of deduction u/s. 80P of the Act by the CPC vide processing return u/s. 143(1)(a)(v) dated 03.01.2021 passed for the A.Y. 2019-20 denying deduction by invoking section 80AC of the Act as the return has been filed belatedly on 30.09.2020. I find that this issue has been dealt with by the coordinate benches consistently in plethora of decisions. I take note of the decision of the coordinate bench of Pune Tribunal in the case of Shree Shiv Sahyadri Nagari Sahakari Pathsanstha Maryadit vs. ITO in ITA No. 1788/PUN/2024,
3 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) dated 07.11.2024 and that of this Tribunal in the case of Food Corporation of India Employees Co-op. Credit Society Ltd. vs. ADIT in dated 22/03/2024 holding that prior to amendment brought in Finance Act, 2021, amending sub-clause (v) of section 143(1)(a), CPC was not vested with the powers to make disallowance u/s. 80AC of the Act denying deduction u/s. 80P of the Act on account of delay in furnishing the income tax return. Since passing of the intimation by the CPC in the instant case, is prior to the amendment effective from 01.04.2021, I respectfully following the judicial precedents, hold that impugned disallowance u/s. 80P of the Act by the CPC is uncalled for. Accordingly, the finding of the Ld.CIT(A) is reversed and the impugned disallowance/adjustments made by the CPC is deleted. Effective grounds of appeal raised by the assessee on merits of the case are allowed as per terms indicated herein above.
In the result, appeal of the Assessee is allowed.
Order pronounced in the open Court on 03.02.2026 Sd/- Sd/- [MANISH BORAD] ACCOUNTANT MEMBER Dated : 03rd February, 2026 vr/-
4 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) Copy to
The appellant 2. The respondent 3. The Pr.CIT, Nagpur concerned. 4. D.R. ITAT, SMC Bench, Nagpur. 5. Guard File.
By Order //True Copy //
Senior Private Secretary ITAT, Nagpur