Pahalampur Samabay Krishi Unnayan Ltd. Vs ITO (ITAT Kolkata)
Deduction u/s 80P cannot be denied in 143(1) processing for Belated Return – Adjustment permissible only from AY 2021-22- ITAT Kolkata
Kolkata Tribunal held that deduction u/s 80P cannot be denied while processing return u/s 143(1) on the ground of belated filing for AY 2019-20, since such adjustment was permitted only from AY 2021-22 onwards by amendment.
Assessee, a co-operative society, had filed return claiming deduction u/s 80P of ₹1,63,83,734. CPC, Bengaluru while processing return u/s 143(1) denied the deduction holding that the return was filed beyond due date u/s 139(1). CIT(A) upheld CPC’s action & confirmed the denial.
On appeal, Assessee argued that the power to disallow Chapter VI-A deductions including 80P through adjustments in 143(1) intimation was inserted only by Finance Act, 2021 w.e.f. AY 2021-22. For AY 2019-20, such disallowance was beyond scope of 143(1). Reliance was placed on ITAT Rajkot in Lunidhar Seva Sahkari Mandali Ltd., ITAT Pune in Finolex Industries Employees’ Co-op Credit Society Ltd., ITAT Lucknow in Sahkari Ganna Vikas Samiti Ltd. & Kerala High Court in Chirakkal Service Co-op Bank Ltd.
Tribunal observed that section 143(1)(a)(v) empowering CPC to disallow deduction for belated return applied only from AY 2021-22. For AY 2019-20, processing u/s 143(1) could not travel beyond limited scope & section 80AC also had no application at that stage. As the return was filed within extended time permitted u/s 139(4), deduction u/s 80P could not be denied. Accordingly, Tribunal annulled the intimation u/s 143(1), set aside the order of CIT(A) & directed AO to allow deduction u/s 80P of ₹1,63,83,734 to the Assessee.
