THE KUMARAKOM VADAKKUMBHAGOM SERVICE CO-OP BANK LTD,KOTTAYAM vs. THE ITO WARD -2 , KOLLAM

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ITA 339/COCH/2023Status: DisposedITAT Cochin12 February 2024AY 2019-20Bench: Shri Sanjay Arora (Accountant Member), Ms. Kavitha Rajagopal (Judicial Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the adjustment made under Section 143(1)(a) to disallow the deduction under Section 80P was not maintainable. This was based on previous rulings that such adjustments, especially concerning Section 80AC before its amendment, are outside the scope of Section 143(1)(a).

What were the facts?

The assessee, a cooperative bank, claimed a deduction under Section 80P. The deduction was denied because the return was filed beyond the due date, making it ineligible under Section 80AC. This denial was made via an intimation under Section 143(1).

What were the issues?

Whether the disallowance of Section 80P deduction under Section 143(1) for a belatedly filed return is maintainable. Whether the adjustment under Section 143(1)(a) is permissible for disallowing deductions based on Section 80AC prior to its amendment.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC,Section 139(1),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Sanjay Arora & Ms. Kavitha Rajagopal

For Appellant: Shri V. Devananada Narasimham
For Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Hearing: 12.02.2024Pronounced: 12.02.2024

Appellant by: Shri V. Devananada Narasimham, Advocate Respondent by: Smt. J.M. Jamuna Devi, Sr. D.R. Date of Hearing: 12.02.2024 Date of Pronouncement: 12.02.2024 O R D E R Per Bench This is an Appeal by the Assessee directed against the Order dated 28.03.2023 by the Commissioner of Income Tax (Appeals), Income Tax Department, dismissing the assessee’s appeal contesting the denial of deduction under section 80P of the Income-tax Act, 1961 (‘the Act’) on processing of it’s return of income for assessment year (AY) 2019-2020 vide Intimation u/s. 143(1) dated 03.01.2021.

2.

The denial of deduction u/s.80P in the instant case has been on account of application of s.80AC of the Act, which, with effect from 01.04.2018, bars the claim of deduction, inter alia, under any provision falling under Chapter VI-A (Part-C), where not made per a return filed within the time specified u/s.139(1). The return in the instant case has been admittedly filed on 25/06/2020, i.e., beyond the extended period of time allowed for filing the original return, i.e., 31.10.2019. The claim (AY : 2019-20) Kumarakom Vadakkumbhagom Service Co-op. Bank Ltd. u/s.80P, made at Rs.1,15,39,290, was accordingly disallowed vide Intimation u/s.143(1), raising a demand for Rs.54,10,374.

3.

The issue before us is the maintainability of the Revenue’s action in denying the assessee it’s claim for deduction u/s.80P on processing u/s. 143(1)(a). This Tribunal has, vide a detailed order in Kollad Service Co-operative Bank Ltd. & Ors. v. ITO(in dated 25.9.2023), found the adjustment u/s.143(1)(a)(ii), which has been applied in the instant case as well, as not maintainable, as indeed u/s. 143(1)(a)(v) where the same is prior to 01.04.2021, i.e., the date on which the corresponding amendment, with reference to sec.80AC, stands made thereto. As explained therein, the adjustment is outside the scope of s. 143(1)(a)(ii), while that u/s. 143(1)(a)(v) could not be given effect to prior to 01/4/2021, as obtains in the instant case.

4.

No contrary argument stands advanced, or decision relied upon by the Revenue; that cited by it in Kollad SCB Ltd. (supra) found distinguishable. The said order has in fact been followed by this Bench of the Tribunal in other appeals as well, going to the extent of stating it to be a mistake, as in Mavelikara Aided School Employee’s Cooperative Society Ltd. v. ITO (ITA No. 974/Coch/2022, dated 9/10/2023). The decision is supported by orders by other Benches as well.

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