VILLUPURAM DISTRICT REVENUE EMPLOOYEES COOP THRIFT AND CREDIT SOCIETY LTD,VILLUPURAM vs. CIT(A), MUMBAI

Villupuram District Revenue ITO, Department Employees Coop Vs. CHE-W-(181)(11) Thrift and Credit Society, No.6 1st Floor Collectorat, Villupuram,Tamil Nadu-605602 [PAN-AACAV5177G) (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Assessee by : Shri Reddy Prakash, C.A. प्रत्यर्थी की ओर से /Revenue by : Shri P.Sajit Kumar, JCIT सुनवाई की तारीख/Date of Hearing : 21.05.2024 घोषणा की तारीख /Date of Pronouncement : 31.05.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal arises from order vide DIN / Order No. ITBA/APL/S/250/2023-24/1057865379(1) dated 10.11.2023 of the CIT(Appeal)/NFAC whereby the appeal of the assesse was dismissed. 2.0 Brief facts of the case are that the assesse is a Co-operative credit Society registered under the Tamil Nadu Co-operative Societies Act, 1983. This Society is mainly formed with object of providing financial Assistance to its Members that to borrow funds from co-operative central Bank and the same is to be utilized for the purpose of issuing loans to its members for the welfare of the members in the society. The Society activities are conducted as per Bye-law, registered with the Co-operative Department. All the activities are monitored by the Joint Registrar of Tamil Nadu Co-operative Department. Statutory Audit was conducted every year by Assistant Director of Tamil Nadu Co-operative Audit Department. Books of Accounts maintained as per the rules prescribed by the Tamil Nadu Co-operative Department and return of Income filed as per Books of accounts and Statutory Audit Report. The Appellant has filed the return of income for the A.Y. 2019-20 as on 16.10.2020 under section 139(4) of the Act as belated return. The reason behind filing of belated return u/s 139(4) of the Act, the appellant submitted that due to election process in the society. The appellant claimed deduction for the entire amount of income of Rs.17,15,750/- under section 80P of the Act. With respective to that, the appellant has received the notice under section 143(1)(a) of the Act against which the appellant did not respond. In the proposed Adjustment it was stated that tax payable with an interest of Rs.7,54,300/- needs to pay after adjusting the refund made during the year which was computed from the total Income of Rs.17,15,750/- as derived under section 143(1) (a) of the Act. Thereafter the order u's 143(1) (a) of the Act was passed on 16.10.2020 assessing total income at Rs.17,15,750/- by disallowing the claim of deduction u/s 80P of Rs.17,15,750/-. The assesse filed before the Lr.CIT(A) who dismissed the appeal of the assesse. 3.0 The only issue under consideration is the action of the Ld.CIT(A) in confirming action of CPC, Bangalore by which a deduction of Rs. 17,15,750/- was denied under 143(1)(a)(v). In the instant case return of income for AY-2019-20 was filed on 16.10.2020 as belated return u/s 139(4). The Ld.CIT(A) has concurred with the findings of CPC that u/s.80AC, deduction u/s.80P shall be allowed only to a assesee if the return is filed in time u/s 139(1). It is the case of the assesse that the law has been wrongly interpreted by the revenue has the impugned provision enabling CPC to make adjustments kick started only w.e.f 01.04.2021. 4.0 In support of its contentions, the appellate has relied upon the decision of the Hon’ble Bangalore ITI in the case of Villupuram Credit Society, inter-alia holding as under:- lt could thus be seen that the enabling provisions allowing specified adjustment for Sec. 80P u/s 143(1)(a) has been brought on statute only with effect from 01.04.2021 and before that no such adjustment of deduction u/s 80P could have been done by the CPC u/s 143(1) (a) even if the return of income was filed beyond due date as specified u/s 139(1). No doubt, the provisions of Sec.0AC mandate denial of deduction u/s 80P even for AY2018-19, However, in our considered opinion, without there being corresponding enabling provisions u/s 143(1) (a), no such adjustment could have been made by CPC for AY 2018-19, The same is amply clear from the memorandum explaining the provisions in the Finance Bill, 2021 as extracted above. Considering the same, we direct revenue to grant deduction u/s 80P as claimed by the assessee in the return of income."