The Rajkot bench of Income Tax Appellate Tribunal (ITAT) held that the Income Tax deduction under section 80P cannot be denied for non-filing of ITR within the due date.
The assessee is a co-operative society duly registered under the Gujarat Co-operative Societies Act. The assessee is engaged in the business of providing credit facilities (financing) to its members only. The assessee has earned interest income from its members and from its investments with other co-operative society.
The assessee filed its return of income belatedly, under section 139(4) of the Income Tax Act 1961, claiming deduction under section 80P of Rs.7, 83,615/-. The return of income filed by the assessee was processed by the centralized processing center, Bengaluru vide Intimation under section 143(1), thereby denying the benefit of claim of deduction under section 80P for the reason that the return of income was not filed within the due date prescribed under section 139(1) of the Income Tax Act 1961.
Aggrieved Assessee, filed an appeal before CPC Centre claiming that there was no provision in section 143(1) (a) to make adjustment to the returned income by disallowing under section 80P. Further there was an amendment in section 143(1) (a)(v) in the Finance Act, 2021 such disallowances are possible under the 143(1) proceedings only from the assessment year 2022-23.
The counsel for the assessee contended that the amendment in Section 143(1) made by Finance Act, 2021 which is not applicable for the present assessment year 2019-2020.
The Coram comprising the account member Waseem Ahmed and the judicial member T.R. Senthil Kumar observed that the assessee cannot be denied the deduction under section 80P of the Income Tax Act 1961, on the ground that the assessee did not file the return of income 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 for the assessment year 2019-20.
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