Vidyut Transmission Karmachari Vetan Bhogi Credit Cooperative Society Vs CPC (ITAT Lucknow)
Belated Return Alone Can’t Kill 80P Claim at CPC Stage: – 143(1) Adjustment for 80P Prior to FA 2021 Unsustainable—Matter Remanded by ITAT
The Lucknow ‘A’ Bench of the ITAT, in Vidyut Transmission Karmachari Vetan Bhogi Credit Cooperative Society vs CPC, Bengaluru & ITO (ITA No. 464/LKW/2025, AY 2019-20), set aside the order of the CIT(A) and remanded the issue of deduction u/s 80P to the AO for fresh adjudication.
The Assessee, a co-operative credit society of electricity department employees, had filed a belated return u/s 139(4) claiming deduction u/s 80P(2)(a)(i). While processing the return u/s 143(1), the CPC disallowed the deduction by treating it as an “incorrect claim”, relying on section 80AC and the fact that the return was not filed within the due date u/s 139(1). The rectification petition was rejected and the CIT(A) confirmed the disallowance.
Before the Tribunal, the Assessee contended that for AY 2019-20, CPC had no jurisdiction to disallow 80P merely because of late filing, as section 143(1)(a)(v) permitting disallowance of Chapter VI-A deductions for belated returns was introduced only by Finance Act, 2021 w.e.f. AY 2021-22. Reliance was placed on several ITAT decisions, including Sahkari Ganna Vikas Samiti Ltd.
The Revenue argued that the Assessee being a credit co-operative society stood on a different footing from sugarcane co-operatives and factual verification was required. Accepting this contention, the ITAT held that automatic allowance or disallowance was not possible at this stage, and the matter required factual examination of activities and eligibility u/s 80P.
Accordingly, the ITAT set aside the CIT(A)’s order and remanded the matter to the AO to decide the 80P claim in accordance with law, after granting due opportunity and considering relevant precedents. The appeal was partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT LUCKNOW
