Trambakpur Sahkari Mandli Vs DCIT/ACIT (ITAT Rajkot)
Income Tax Appellate Tribunal (ITAT) Rajkot has intervened in the case of Trambakpur Sahkari Mandli Vs DCIT/ACIT, addressing the contentious issue of denying Section 80P deduction to a co-operative society solely on the grounds of belated filing of its income tax return. The Tribunal’s decision, pronounced on October 31, 2022, has restored the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication on merits, emphasizing the limitations of prima facie adjustments under Section 143(1) of the Income Tax Act, 1961.
The assessee, Trambakpur Sahkari Mandli, a co-operative society, filed its income tax return for Assessment Year (A.Y.) 2019-20 on November 30, 2020, declaring a nil income and claiming a deduction of Rs. 4,11,630/- under Section 80P of the Act. Subsequently, the Centralized Processing Centre (CPC), Bengaluru, issued an intimation under Section 143(1)(a) of the Act, adjusting the returned income and denying the claimed 80P deduction. The CPC’s reasoning was that the return of income was not filed within the due date prescribed under Section 139(1) of the Act.
The assessee appealed this adjustment to the National Faceless Appeal Centre (NFAC), Delhi. The CIT(A) upheld the CPC’s action, citing the amended provisions of Section 80AC, effective from A.Y. 2018-19 onwards. According to the CIT(A), this amendment made it mandatory for an assessee to file its return of income on or before the due date to avail any deductions under Chapter VIA, including Section 80P. Given that the assessee’s return for A.Y. 2019-20 was filed on November 30, 2020, well beyond the normal due date of August 31, 2019, and even the extended date of September 30, 2019, the CIT(A) found no infirmity in the CPC’s disallowance. The appeal was consequently dismissed.
