M/S. DHARNI TALUKA CO-OP AGRICULTURAL PURCHASE & SALE SOCIETY,DHARNI vs. INCOME TAX OFFICER, WARD-3, AMRAVATI

2 ITA.Nos.25 & 26/NAG./2023 2. The assessee’s former appeal ITA.No.25/NAG./2023 for assessment year 2016-17 raises it’s sole substantive grievance challenging correctness of both the learned lower authorities action denying sec.80P deduction of Rs.13,10,311/- in the course of assessment dated 18.12.2018 as upheld in the NFAC’s detailed discussion. Learned DR strongly supported the same during the course of hearing thereby stating that the assessee had not made the corresponding claim of sec.80P deduction in it’s sec.139(1) return dated 31.03.2018 filed beyond the due date. It is noticed in this factual backdrop that on the one hand sec.80AC requiring an assessee to file sec.139(1) return before claiming the corresponding specified deduction(s) has been made applicable w.e.f. 01.04.2018 whereas the impugned assessment year is 2016-2017, on the other hand, there is no indication as to whether the assessee had sought the foregoing deduction in “a” return as per sec.80AC(5) of the Act. This clinching issue has nowhere been addressed either by the Assessing Officer or in the lower appellate discussion under challenge. Faced with this situation, it is deemed appropriate to restore the assessee’s sole substantive grievance back to the Assessing Officer for his appropriate adjudication as per law, preferably within three effective opportunities of hearing, subject to the rider that it shall be the taxpayer’s risk and 3 ITA.Nos.25 & 26/NAG./2023 responsibility only to file and prove all the relevant facts in consequential proceedings. Ordered accordingly.

This assessee’s former appeal ITA.No.25/NAG./ 2023 is allowed for statistical purposes in the above terms.

Coming to the assessee’s latter appeal ITA.No.26/NAG./2023; Mr. Marathe could hardly dispute that the learned lower authorities had declined it’s sec.80P deduction claim by way of “processing” u/sec.143(1)(a)(v) of the Act for not having filed return within the “due date” prescribed u/sec.139(1) of the Act.

It further emerges that the instant issue is no more res integra for the precise reason that the Finance Act, 2021 had inserted the necessary amendment to this effect w.e.f. 01.04.2021 carrying prospective operation only whereas we are in assessment year 2018-2019. And that this tribunal’s recent coordinate bench order in ITA.No.62/NAG./2022 ITO vs. Nagpur Zilla Parishad Primary Shikshah Sahakari Sanstha Maryadit, Nagpur has rejected the Revenue’s very contentions as under :

This assessee’s latter appeal ITA.No.26/NAG./2023 is allowed in above terms.

To sum-up, the assessee’s instant former appeal ITA.No.25/NAG./2023 is allowed for statistical purposes whereas the assessee’s latter appeal ITA.No.26/NAG./2023 is allowed in above terms. A copy of this common order be placed in the respective case files.