Denial of deduction u/s 80P sustained as return filed belatedly

Parabada Co-op Vs ITO (ITAT Ahmedabad)

ITAT Ahmedabad held that deduction under section 80P of the Income Tax Act disallowed as assessee filed return belatedly.

Facts- The assessee is a Co-operative Milk Producers Society and filed return of income for A.Y. 2019-20 on 05.11.2019 as against extended due date i.e. 31.10.2019, claiming deduction under Section 80P of the Income Tax Act, 1961 amounting to Rs.4,61,664/-. The CPC, Bangalore while processing the said return, disallowed the entire claim of deduction of Rs.4,61,664/- claimed under Section 80P of the Act in the intimation under Section 143(1) of the Act on 16.04.2020 on the ground that the assessee’s claim is not admissible as the return of income was filed belatedly.

Being aggrieved by the intimation under Section 143(1) of the Act dated 16.04.2020, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

Conclusion- It is pertinent to note that the assessee has admitted that returns were filed belatedly. The assessee should have filed the return within the extended period of due date but the assessee failed to do so. The Assessing Officer thereby issued intimation under Section 143(1) of the Act and has categorically disallowed the deduction under Section 80P of the Act on the ground of belated returns.

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