M/S ANCHALUMOODU SERVICE CO-OP BANK LIMITED,KOLLAM vs. ITO WARD -1 & TPS, KOLLAM

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ITA 944/COCH/2022Status: HeardITAT Cochin10 October 2023AY 2019-20Bench: Shri Sanjay Arora (Accountant Member), Shri Manomohan Das (Judicial Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the adjustment made under Section 143(1)(a) for denying the Section 80P deduction was not maintainable. This was based on previous rulings that such adjustments were outside the scope of Section 143(1)(a)(ii) or not applicable prior to April 1, 2021, for Section 143(1)(a)(v).

What were the facts?

The assessee, a cooperative bank, claimed a deduction under Section 80P. The return was filed beyond the due date, leading to the disallowance of the deduction under Section 80AC. The assessee contested this disallowance made via an intimation under Section 143(1).

What were the issues?

Whether the disallowance of Section 80P deduction under Section 143(1) due to late filing of return, in light of Section 80AC, is maintainable.

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 & Shri Manomohan Das

For Appellant: Shri Santosh P. Abraham, Advocate
For Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Hearing: 10.10.2023Pronounced: 10.10.2023

O R D E R Per Sanjay Arora This is an Appeal by the Assessee directed against the Order dated 21.09.2022 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 23.02.2021.

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 03.3.2020, i.e., beyond the extended period of time allowed for filing the original return, i.e., 31.10.2019. The claim ITANo. 944/Coch/ 2022 & SA No. 71/Coch/2023 Anchalumoodu Service Co-operative Bank Ltd. vs. ITO u/s.80P, made at Rs.26,66,744, was accordingly disallowed vide Intimation u/s.143(1), raising a demand for Rs.11,21,143.

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, i.e., with reference to sec.80AC, stands made in s.143(1)(a)(v). 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.

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