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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao
O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 28.06.2024 for Assessment Year (AY) 2019-20.
Brief facts of the case are that the assessee is a co-operative society and filed return of income for AY 2019-20 on 14.03.2020disclosing an income of Rs. 11,49,948/- and claimed deduction u/s. 80P(2)(i)(a) of the Income Tax Act, 1961 (the Act) at Rs. 1,57,445/- . The said return of income was processed u/s. 143(1) of the Act vide intimation dated 14.03.2020 disallowing the claim for deduction u/s. 80P of Rs. 1,57,445/- on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act.
Kozhikode Taluk Kalluchethu Vyavasaya Tozhilali Shhakarana Sangam 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order placing reliance of the provisions of section 80AC(ii) of the Act and also on the decision of the Hon'ble Madras High Court in the case of Veerappampalayam Primary Agricultural Co-operative Credit Society Ltd. vs. DCIT (07.04.2021) confirmed the action of the AO.
Being aggrieved, the assessee is in appeal before the Tribunal. It is submitted before me that the CPC ought not have disallowed the claim for deduction u/s. 80P of the Act.
The learned Sr. DR, on the other hand, submits that no interference is called for in the orders of the lower authorities.
I have heard the rival contentions of both the parties and perused the material available on record. The short issue that arises for my consideration is whether or not the action of the CPC in disallowing the claim for deduction u/s. 80P is justified. The CPC while processing the return of income could only make such adjustments as specified under clauses (i) to (v) of section 143(1). It is only by Finance Act, 2021 w.e.f. 01.04.2021 the parliament empowered the CPC to make adjustment u/s. 80P under sub-clauses (1) to (v) of section 143(1) of the Act. Since the year under consideration before me is only AY 2019-20 the CPC has no power to make such adjustment when the legislative intent is clear. It is beyond the scope of the power of CPC making adjustment u/s. 80P while processing the return of income u/s. 143(1) of the Act. Therefore, I direct CPC/AO to amend the intimation u/s. 143(1) by deleting the adjustment made by disallowing the claim of deduction u/s. 80P of the Act.