Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2021-22 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Visakhapatnam [hereinafter “CIT(A)”] dated 29.06.2024 vide intimation issued by CPC, Bengaluru u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) dated 30.09.2022.
ITA No.2333/Chny/2023 :- 2 -:
The only effective ground of appeal is against confirming the disallowances u/s 80P of the Act made by AO invoking the provisions of section 80AC of the Act, even though the application for condonation of delay u/s 119(2)(b) of the Act is pending before CBDT.
1. 3. The brief facts of the case are that the assessee’s society filed return of income for AY 2021-22 on 21.03.2022 at Nil , after claiming deduction under Chapter-VI-A of the Act of Rs 58,063/ . The CPC, Bengaluru vide intimation u/s 143(1) has disallowed the claim of the assessee for the reason that the return was filed beyond the due date specified u/s 139(1) of the Act. Being aggrieved, the assessee preferred an appeal before the Ld.CIT(A). The Ld.CIT(A) has dismissed the appeal of assessee observing as under:
“5.0 DECISION: On the issue of Disallowance of chapter VIA deduction claimed Ground of appeal on the issue of claim of deduction under Section filing of return beyond the due date: The provision the section 80AC is reproduced as under "Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after- (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE;
ITA No.2333/Chny/2023 :- 3 -:
(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.
"Hence section 80AC of the Income Tax Act put a bar against claiming deduction in respect of certain income provided under the head (C) of Chapter VIA which includes section 80P of the Act also, if the return of income was not filed before the due date prescribed under Section 139(1) of the Income Tax Act.
Applying the principle laid down in the decision of the Hon'ble Supreme Court in the case of Hon'ble Supreme Court in the case of Commissioner of Customs (Import) vs. Dilip Kumar & Co. & Ors., CA No. 3327/2007, dated 30th July, 2018. to the facts of the present case, it is quite clear that as per the provision of section 80AC, which is very clear and unambiguous in its expression, that for claiming deduction u/s 80P it is a mandatory requirement that the assessee must file its return of income within the due date prescribed u/s 139 (1), notwithstanding the fact whether has actually claimed deduction in the return of income.
Once the return of income is filed within the due date prescribed u/s 139(1), even without claiming deduction under the specified provisions, the assessee can claim it subsequently either in a revised return filed u/s 139(5) or by filing a revised computation during the assessment proceeding. In that situation, the condition of section 80AC would stand complied. The words used in section 80AC of the Act being plain and simple, leave no room for a different interpretation.
In the instant appeal, the return of income was not filed by the appellant before statutory time limit which was 15.03.2022. Hence the disallowance of deduction under section 80P (Chapter VIA) by CPC is found to be correct and the grounds of appeal as filed by the appellant on this issue is 'dismissed'.
5.1. The other grounds of appeal are consequential and/or general in nature and requires no further adjudication.
6.0. Hence, subject to the above discussion, the grounds of appeal raised by the appellant M/s. IDAPPADI PANCHAYAT UNION EMPL & TEACHERS COP THRIFT&CREDIT SOC LIMITED S 1497 against the intimation/order passed u/s 143(1) for the AY 2021-22 is "Dismissed".
ITA No.2333/Chny/2023 :- 4 -:
The Ld. Authorized Representative (A.R) of the assessee has submitted that the assessee has filed a petition for condonation of delay in filing return of income u/s. 119(2)(b) of the Act, which is pending before CBDT. The Ld. AR has submitted that the Ld. CIT(A) has decided the appeal without considering the fact that the assessee’s petition for condonation of delay in filing return is pending before the Board. The Ld. AR therefore requested that the order of Ld. CIT(A) may be set aside and he may be directed to decide the appeal after decision of CBDT.
The Ld. D.R has not objected to the prayer of the ld. Counsel for the assessee.
We have heard the rival submissions, and perused the materials available on record. The Ld. CIT(A) has confirmed the disallowances under chapter VI-A, in the intimation u/s 143(1) on the ground that the assessee has not filed return within the due date prescribed and therefore as per Section 80AC of the Act, deduction under chapter VIA is not allowable. However, the assessee has submitted that the it has filled condonation petition for late filing return of income and same was pending before CBDT, therefore Ld CIT(A) was not justified to dismiss appeal without considering the condonation petition. We find :- 5 -: that assessee is cooperative society and it could not file return of income within the prescribed due date as the audit of the society under Tamil Nadu Co-operative society Act 1983 was completed only on 28.12.2021. For that, the assessee has filled condonation petition, which is pending before CBDT. In view of above, we remand matter back to the file of Ld. CIT(A) for deciding the appeal after the decision of CBDT . We also direct assessee to bring in the notice of Ld CIT(A) the decision of CBDT on the application made u/s 119(2)(B) within 15 days of receipt of such order. Thus, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 29th November, 2024.