Sangeet Plaza IFTEX Office Premises Coop Soc Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that adjustment of disallowance of deduction u/s 80P(2)(d) is not permissible adjustment under section 143(1) of the Act. Accordingly, order of CIT(A) set aside and deduction u/s. 80P(2)(d) allowed.
Facts- The assessee is a Co-operative society. CPC while processing the return u/s 143(1) of the Act disallowed the claim of the assessee in respect of interest earned from deposits with Co-operative bank claimed in terms of section 80P(2)(d).Subsequent rectification application of the assessee for of rectification u/s 154 of the Income Tax Act was also rejected by CPC. In the subsequent appeal before the CIT(A), the first appellate authority rejected the contention of the assessee on the ground that there was no apparent mistake in the order.
Conclusion- In the case of Sterling Court in ITA No.72-75/Mum/2024 dated 11.06.2024 ‘SMC’, Mumbai bench it is held that that adjustment of disallowance of deduction u/s 80P(2)(d) is not permissible adjustment under section 143(1) of the Act.
Thus, respectfully following the view taken by the Hon’ble Coordinate Benches of Mumbai Tribunal, we hold that the CPC was not justified in disallowing the claim of decision u/s 154/143(1) of the order. We set aside the order of the ld.CIT(A) and allow the deduction claimed by the assessee u/s 80P(d)(2) of the Act.
