Jila ALP Sankhyak Bachat Sahakari Sakh Samiti Maryadit Vs DCIT (ITAT Raipur)
Deductions otherwise disallowable under the Act but could not be disallowed in 143(1) – Eg 80P deduction AY 18-19 to AY 20-21
Assessee -Credit Co-operative Society, claiming deduction u/s.80P filed its ROI A.Y.2018-19 beyond the due date u/s 139(1). CPC in its Intimation issued u/s. 143(1) declined the assessee’s claim for the reason that the return of income was not filed within the “due date” as specified u/s.139(1) of the Act.
On appeal, CIT(A) upheld the addition holding timely filing of ITR is mandatory statutory requirement as far as compliance to sec 80AC is concerned and that the said provisions requiring the assessee to furnish the ROI before due date specified u/s 139(1) is mandatory & not directory .
On further appeal, the ITAT noted that though at the first blush, the view taken by the A.O disallowing the assessee’s claim of deduction u/s.80P for the reason that it had belatedly filed its return of income, appeared to be correct, the amendment in the machinery proviso i.e. Sec143(1)(a)(v) of the Act rendering the same as workable to disallow any deduction claimed by the assessee under Chapter VIA in a case return of income is furnished by him beyond the “due date” specified in 139(1) was made available only vide the Finance Act, 2021, w.e.f. 01.04.2021 i.e. from A.Y.2021-22 onwards.
The amendment to Sec 80AC, vide the Finance Act, 2018, w.e.f. 01.04.2018, no deduction would be admissible under certain sections of Chapter VIA of the Act, unless the assessee furnishes his return of income for the assessment year on or before the “due date” specified u/s 139(1), no such amendment was made available in sec 143(1)(a) till 01.04.2021. Therefore, no adjustment to the returned income of the assessee to the said effect could have been carried out during the A.Y.2018- 19.
Sec 143(1)(a)(v) was brought in conformity and rendered compatible to facilitate disallowance of claim for deduction u/s.80P r.w.Section 80AC(ii) only vide the Finance Act, 2021 w.e.f. 01.04.2021 and thus the disallowance of the assessee’s claim for deduction u/s.80P for a period prior theretoi.e. A.Y.2018- 19 could not have been carried out in the garb of an adjustment u/s.143(1)(a) of the Act.
As the pre-amended Section 143(1)(a)(v) jeopardized the allowability of an assessee’s claim for deduction only qua those claimed under Section 10A, 80-IA, 80-IAB, 80-IB, 80-IC, 80- ID or 80-IE of the Act, and Section 143(1)(a)(v) was only post amendment that was made available on the statute vide the Finance Act, 2021 w.e.f. 01.04.2021 been made compatible, and in fact workable, to facilitate a disallowance contemplated u/s. 80P w.e.f. A.Y.2021-22, therefore, it is beyond comprehension that as to how any such adjustment could have been made by the CPC vide 143(1) intimation for A.Y.2018-19.
Tribunal held that CPC had clearly traversed or, in fact exceeded its jurisdiction for disallowingu/s.143(1)(a)(v) of the Act the assessee’s claim for deduction u/s.80P de hors any power vested with it at the relevant point of time, thus, the same cannot be sustained and is liable to be vacated.
It is to be noted that though the Revenue had amended sec 80AC w e f 1.4.2018 ( AY 2018-19), no corresponding amendment was made in 143(1)(a)(v). Comparative analysis of the provisions are as under:
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