VIVIDH KARMACHARI SAHAKARI PATA SANSTHA MARYADIT ,WARDHA vs. DEPUTY COMMISSIONER OF INCOME TAX, CPC, BANGALURU

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ITA 157/NAG/2023Status: DisposedITAT Nagpur24 April 2024AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member), DR. DIPAK P. RIPOTE (Accountant Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amendment inserting Section 143(1)(a)(v) for disallowing Chapter VI-A deductions for late filing has prospective effect from April 1, 2021. Therefore, it cannot be applied to the assessment year 2018-19.

What were the facts?

The assessee claimed deduction under Section 80P for AY 2018-19. The claim was rejected during processing under Section 143(1)(a)(v) for not filing the return within the due date prescribed under Section 139(1).

What were the issues?

Whether the disallowance of Section 80P deduction under Section 143(1)(a)(v) for late filing of return is applicable for AY 2018-19, given the prospective nature of the amendment.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: SHRI SATBEER SINGH GODARA & DR. DIPAK P. RIPOTE

Hearing: 28.03.2024Pronounced: 24.04.2024

1 ITA.No.157/NAG./2023 IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER I.T.A.No.157/NAG./2023 Assessment Year 2018-2019 Vividh Karmachari Sahakari Patasanstha Maryadit Ashti, Main Road, The DCIT, CPC, vs. Ashti, Shivaji Market, Bengaluru – 560 500 WARDHA – 442 202. State of Karnataka. Maharashtra. PAN AABTV5622L (Appellant) (Respondent) For Assessee : Shri Prakash Nanwani For Revenue : Shri Abhay Y Marathe, Sr. DR Date of Hearing : 28.03.2024 Date of Pronouncement : 24.04.2024 ORDER PER SATBEER SINGH GODARA, J.M. :

This assessee’s appeal for assessment year 2018-19, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s as many Din and Order Nos.ITBA/NFAC/S/250/2023-24/1051839776(1) dated 01.04.2023, involving proceedings u/s.143(1) of the Income Tax Act, 1961 (in short "the Act"); respectively.

Heard both the parties. Case file perused.

2.

It emerges during the course of hearing that the assessee’s sole substantive grievance raised herein challenges correctness of both the learned lower authorities action rejecting it’s sec.80P deduction claim by way of “processing” u/sec.143(1)(a)(v) of 2 ITA.No.157/NAG./2023 the Act for not having filed return within the “due date” prescribed u/sec.139(1) of the Act.

3.

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 :

“3. Learned CIT-DR vehemently reiterated the Revenue’s above extracted pleadings that the CIT(A) has erred in law and on facts in holding the assessee eligible for it’s sec.80P deduction despite the fact that it had not filed it’s return within the “due date” prescribed u/sec.139(1) of the Act. Mr. Kanojiya referred to sec.80AC (ii) that the same is in the nature of a mandatory provision which disentitles the assessee from claiming sec.80P deduction and therefore, the CPC’s processing dated 29.05.2020 herein had rightly rejected the assessee’s claim u/sec.143(1)(a)(v) of the Act.

4. We find no merit in the Revenue’s instant sole substantive grievance canvassed herein as sec.143(1)(a)(v); for the purpose of disallowing the impugned claim under Chapter- VIA of the Act; has been inserted by the Finance Act 2021 w.e.f. 01.04.2021 carries prospective effect only whereas the 3 ITA.No.157/NAG./2023 assessment year before us is assessment year 2019-2020 and that CPC’s processing had rejected the assessee’s claim on 29.05.2020. That being the case, we conclude that the impugned disallowance by way of sec.143(1)(a)(v) processing is not sustainable in law. We accordingly decline the Revenue’s vehement arguments seeking to revive the sec.80P disallowance herein to the tune of Rs.3,01,74,039/- in very terms. Ordered accordingly.

5. This Revenue’s appeal is dismissed in above terms.”

4.

I thus adopt judicial consistency to reverse the learned lower authorities action disallowing assessee’s impugned deduction claim(s) by way of sec.143(1)(a)(v) “processing” in very terms. The assessee succeeds in it’s instant first and foremost legal ground thereby rendering all other pleadings as academic in nature.

5.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open Court on 24.04.2024.

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