Dared Seva Sahkari Mandali Ltd Vs Assessment Unit (ITAT Ahmedabad)
ITAT Ahmedabad held that claim of deduction u/s 80P is admissible only when the claim of deduction u/s 80P is made in the return of income filed on or before the due date prescribed u/s 139(1). Thus, deduction u/s. 80P inadmissible when return is filed after due date prescribed u/s. 139(1).
Facts- The Assessing Officer assessed income u/s. 147 r.w.s. 144B of the Act assessing total income of assessee at ‘ Nil’ , but vide computation sheet issued by the Assessing Officer which was part of the assessment order , the deduction u/s. 80P of the Act of Rs. 3,92,061/- was denied to the assessee. and notice of demand u/s 156 of Rs. 2,58,357/- was raised by the AO , vide reassessment order dated 29.03.2023 passed by the AO u/s 147 read with Section 144B of the 1961 Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that as per substituted amended Section 80AC w.r.t. deduction falling under Chapter-VIA under the heading “C-Deductions in respect of certain incomes”, it is mandatory that return of income is to be filed on or before the due date prescribed u/s 139(1). Deduction u/s 80P falls within Chapter VIA-C, and is covered by 80AC(ii). The assessee did not filed return of income on or before the due date as prescribed u/s 139(1), and it is only in the return of income filed in pursuance to notice u/s 148 which is filed beyond the due date prescribed u/s 139(1), the assessee filed said claim of deduction u/s 80P , which clearly is not admissible keeping in view substituted provisions of Section 80AC effective from assessment year 2018-19. The language of amended section 80AC is plain , clear and unambiguous, and literal reading of Section 80AC make it very clear that claim of deduction u/s 80P is admissible only when the claim of deduction u/s 80P is made in the return of income filed on or before the due date prescribed u/s 139(1).
