Case Law Details
West Bengal State Multipurpose Consumers Cooperative Federation Limited Vs ACIT (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) Kolkata has passed a favorable ruling for the taxpayer, West Bengal State Multipurpose Consumers Cooperative Federation Limited. The ITAT allowed the deduction claimed under section 80P for the Assessment Year (AY) 2019-2020. The decision was based on two grounds: timely filing of the return and jurisdictional issues related to the Central Processing Centre (CPC).
The taxpayer’s cooperative society filed its income tax return within the extended due date prescribed by the Central Board of Direct Taxes (CBDT). Despite the timely filing, the CPC disallowed the deduction claimed under section 80P. The ITAT determined that the CPC’s action was unwarranted as the return was filed within the prescribed time limit under section 139(1) of the Income Tax Act. The deduction was restored to the taxpayer.
Additionally, the ITAT observed that the CPC’s power to make prima facie adjustments for disallowing deductions under section 80P came into effect only from April 2021. For the AY 2019-2020, the CPC did not possess the authority to make such adjustments. This finding further supported the ITAT’s decision to allow the deduction.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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