Case Law Details
Bisharpara Kodalia Cooperative Credit Society Ltd Vs ITO (ITAT Kolkata)
Introduction: The dispute between Bisharpara Kodalia Cooperative Credit Society Ltd and the Income Tax Department revolves around the jurisdiction of the Central Processing Centre (CPC) to make prima facie adjustments towards deductions under Section 80P of the Income Tax Act. The appeal was filed against the order of the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 21.09.2023.
Detailed Analysis: The appellant, a registered cooperative society, had its income tax return processed by the CPC under Section 143(1) of the Income Tax Act. The CPC disallowed the deduction under Section 80P since the return was filed beyond the due date. The appellant contested this disallowance, arguing that the CPC’s action was beyond its jurisdiction prior to April 2021.
The Tribunal noted that before April 2021, the CPC lacked the authority to make prima facie adjustments regarding deductions under Section 80P. Such powers were conferred on the CPC only from April 2021 onwards. Therefore, the disallowance made by the CPC was deemed beyond its jurisdiction.
While Section 80AC of the Act bars claiming deductions for certain income if the return is not filed before the due date, this provision applies to scrutiny proceedings under Section 143(3). In the present case, the issue pertained to a prima facie adjustment under Section 143(1), and the CPC’s actions were deemed unauthorized.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
