The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has recently disallowed deduction under Section 80P due to late submission of return.
The assesse-Parabada Co-op. Milk Producers Society Limited was a Co-operative Milk Producers Society and filed return of income for Assessment Year 2019-20 on 05.11.2019 as against extended due date i.e. 31.10.2019, claiming deduction under Section 80P of the Income Tax Act, 1961 amounting to Rs.4,61,664/-.
The CPC, Bangalore while processing the said return, disallowed the entire claim of deduction of Rs.4,61,664/- claimed under Section 80P of the Income Tax Act in the intimation under Section 143(1) of the Income Tax Act on 16.04.2020 on the ground that the assessee’s claim is not admissible as the return of income was filed belatedly.
Being aggrieved by the intimation under Section 143(1) of the Income Tax Act dated 16.04.2020, the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal of the assessee
Counsel for the assessee submitted that the assessee filed return of income belatedly but the intimation was not under Section 143(3) of the Income Tax Act, but under Section 143(1)(a) of the Income Tax Act wherein the adjustment in respect of Clause (b) of the said Section came with the effect from 01.04.2021. It was therefore sibmitted that, deduction claimed under Section 80P or the Income Tax Act should have been granted and not merely be rejected on the ground of late filing of the return.
Counsel for the revenue submitted that Section 80AC(ii) of the Income Tax Act making it clear that any deduction that is claimed under Part C of Chapter VIA would be admissible only if the return of income is filed within the prescribed due date.
The Single Bench of Judicial Member Suchitra Kamble observed that the assessee should have filed the return within the extended period of due date but the assessee failed to do so. The Assessing Officer thereby issued intimation under Section 143(1) of the Income Tax Act and has categorically disallowed the deduction under Section 80P of the Income Tax Act on the ground of belated returns.
It was noted that, “The assessee filed return belatedly and Section 80AC(ii) of the Act is inapplicable in present case. The CIT (A) was right in denying the claim of assessee that of deduction under Section 80P of the Income Tax Act.”
In result, the appeal filed by the assessee was dismissed
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