M/S CHAMPAKARA SCB LTD,KOTTAYAM vs. ITO WARD , KOTTAYAM

The case was called twice. None appeared on behest of the assessee. Therefore, we proceeded to hear the appeal exparte qua the assessee.

Coming to the assessee’s sole substantive grievance challenging both the lower authorities action disallowing its section 80P deduction claimed of Rs. 879,57,663/- in the course of assessment proceedings dated 23.06.2021 as upheld in the first appellate proceedings, the Revenue vehemently argues that this taxpayer has not filed it return within the due Champaraka SCB Ltd. date prescribed u/s. 139(1) and therefore, section 80A(5) of the Act bars such a relief. He could hardly rebut the clinching fact that the assessee has filed a “belated” return claiming the impugned deduction. Be that as it may, the hon'ble jurisdictional high court’s landmark decision in Chirackal Service Co-op. Bank Ltd. v. CIT [2016] 384 ITR 490 (Ker) has already settled the issue in favour of the assessee and against the department that even a belated return claiming section 80P deduction negates applicability of section 80A(5) of the Act. We thus reject the Revenue’s instant technical objection seeking application of section 80A(5) in very terms leave it for the Assessing Officer to verify all the relevant facts for the purpose of section 80P deduction herein. Ordered accordingly.

The Revenue next submits that section 80AC of the Act also applies to this case that a return in such a case has to be filed u/s. 139(1) of the Act. We make it clear that the legislature has inserted the relevant statutory condition of filing of return before the due date u/s. 139(1) of the Act on or after 01.04.2018 whereas we are in AY 2018-19 only. There is, further, no material on record indicting retrospective applicability of the foregoing statutory provision. This Revenue’s contention is rejected therefore.