Rushabh Apartment Co-op. Housing Society Limited Vs ITO (ITAT Mumbai)
The appeal was filed against the order of the Commissioner of Income-tax (Appeals) dated 28 December 2023 for Assessment Year 2012-13. The assessee challenged the refusal of the CIT(A) to condone the delay in filing the appeal and the dismissal of the appeal in limine. The assessee also contested the denial of deduction under Section 80P(2)(d) in respect of interest received from a co-operative bank and argued that the adjustment made under Section 143(1) was beyond the scope of permissible adjustments.
The assessee, a co-operative housing society registered under the Maharashtra Co-operative Societies Act, had filed its return declaring income of Rs. 79,910 after claiming deduction of Rs. 3,30,305 under Section 80P(2)(d). The Central Processing Centre (CPC), Bengaluru, while processing the return under Section 143(1), disallowed the deduction without giving any reason or opportunity to the assessee. The assessee filed a rectification application on 6 June 2013, which was rejected. A second rectification application was filed on 23 August 2013 and remained pending.
Subsequently, the assessee filed an appeal before the CIT(A) on 27 March 2023. The CIT(A) refused to condone the delay of nearly ten years and dismissed the appeal. The Tribunal observed that the disallowance of deduction under Section 80P was beyond the scope of prima facie adjustments permissible under Section 143(1). It further held that the pending rectification application constituted a reasonable cause for the delay, as the assessee was waiting for its disposal. The Tribunal noted that a screenshot dated 20 June 2024 showed that the rectification application remained pending since 23 August 2013.
