Case Law Details
Ambaradi Seva Sahkari Mandali Ltd. Vs DCIT (CPC) (ITAT Rajkot)
ITAT Rajkot held that denying the exemption under Section 80P of the Income Tax Act merely on the ground of belated filing of return by the assessee is not justifiable.
Facts- The assessee is a co-operative society. Post filing of return of income, the assessee was in receipt of communication u/s. 143(1)(a) of the Act from CPC dated 08.12.2020 for proposed adjustment u/s. 143(1)(a) of the Act in returned income for not granting deduction of Rs.18,20,276/- claimed in the return of income u/s. 80P of the Act stating that of the assessee made incorrect claim under Section 143(1)(a)(ii) of the Act by way of deduction u/s. 80P to the returned income is not filed within due date.
The assessee filed response in reply to communication u/s. 143(1)(c) of the Act by stating that the return of income was filed u/s. 139(4) of the Act and provisions of Section 143(1)(a)(b) of the Act do not provide for denial of deduction u/s. 80P of the Act. Even when the return of income is not filed within the time limit as per Section 139(1) of the Act and, therefore, denial of deduction under Section 80P vide intimation u/s. 143(1) of the Act was not valid in law. The assessee also submitted that the said adjustment could not be called prima facie adjustment. Thereafter, intimation u/s. 143(1) of the Act dated 22.12.2020 was received by the assessee thereby no deduction u/s. 80P of the Act was made determining total income at Rs.18,20,276/-.
CIT(A) dismissed the appeal. Being aggrieved, present appeal is filed.
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