Deduction u/s 80P of IT Act cannot Denied Due to Late Filing of ROI : ITAT quashes Order [Read Order]

The Kolkata bench of Income Tax Appellate Tribunal( ITAT) held that the deduction under section 80P of Income Tax Act,1961 cannot be denied due to late filing of return of income (ROI).

Kishorepur Paschimanchal SKUS Limited, the appellant assessee appealed against the order passed by the commissioner of Income Tax( Appeals) for not granting the deduction under section 80P of Income Tax Act,1961.

Siddharth Agarwal, the counsel for the assessee contended that based on various decisions the denial of deduction under section 80P of Income Tax Act was against the provision of law. It was also submitted that the claim of deduction under section 80P of the Income Tax Act cannot be denied to the assessee only on the basis that the assessee did not file return of income its return of income within due date under section 139(1) of the Income Tax Act.

P.P. Barman, the counsel for the revenue strongly opposed the contentions made by the assessee and supported the decisions passed by the lower authorities.

The two member bench comprising of Sanjay Garg ( Judicial ) and Dr. Manish Borad (Accountant) held that order of the commissioner that the amendment in Section 143(1) made by Finance Act, 2021 which is not applicable for the present case. It was also held that the no hesitation in holding that the assessee cannot be denied the deduction under section 80P of the Income Tax Act on the ground that the return of income was not filed within the due date prescribed under section 139(1) of the Income Tax Act under proceedings made under section 143(1) of the Income Tax Act while allowing the appeal filed by the assessee.

To Read the full text of the Order CLICK HERE

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