Dhar Deva Sahakari Mandali Ltd Vs DCIT (ITAT Rajkot)
Income Tax Appellate Tribunal (ITAT) Rajkot has intervened in the appeal of Dhar Deva Sahakari Mandali Ltd Vs DCIT, challenging the disallowance of Section 80P deduction for a co-operative society due to the late filing of its income tax return. The Tribunal’s order, pronounced on October 31, 2022, restores the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for re-evaluation on its merits, asserting limitations on the powers of the Centralized Processing Centre (CPC) under Section 143(1) of the Income Tax Act, 1961, for the assessment year in question.
The assessee, Dhar Deva Sahakari Mandali Ltd, a co-operative society, filed its income tax return for Assessment Year (AY) 2019-20 on November 30, 2020. In this return, the society declared a nil income and claimed a deduction of Rs. 5,13,568/- under Section 80P of the Act. However, the CPC, Bengaluru, subsequently issued an intimation under Section 143(1)(a) dated December 28, 2020, disallowing the claimed 80P deduction. The basis for this disallowance was that the return of income had not been filed within the due date stipulated under Section 139(1) of the Act. The extended due date for the relevant year was August 31, 2019.
