Case Law Details
Medi Seva Sahakari Mandali Ltd Vs ADIT (ITAT Rajkot)
Held by the Rajkot Bench of the Income Tax Appellate Tribunal in the case of [2023] 146 taxmann.com 3 (Rajkot – Trib.) Medi Seva Sahakari Mandali Ltd. V ADIT (CPC) that deduction u/s 80P could not be denied only on the basis that assessee did not filed the Return of Income within due date prescribed u/s 139(1) of the Income Tax Act, 1961.
The Assesse is a Co-operative society & filed its Return of Income after the due date mentioned in Section 139(1) & also claimed deduction u/s 80P of the IT Act, 1961. However, the deduction u/s 80P was denied while processing of the Return of Income u/s 143(1)(a) of the Act on the ground that the Return was not filed within the due date.
Against the intimation u/s 143(1)(a) the Assessee preferred an appeal before the Commissioner of Income tax (Appeals). The CIT(A) while passing the order u/s 250 referred to the provisions of Section 80AC & held that No Deductions under the Part – C of Chapter VI-A ‘’Deduction in respect of certain incomes’’ which includes Section 80P also if the assessee fails to submit the Return of Income within the due date. The CIT(A) further states that the Jurisdiction of Section 143(1) also includes disallowance of deduction u/s 80P as it falls under the ‘’Incorrect claim in the return of income & such claim is apparent from any information in the return’’.
The ITAT observed that Section 80AC amended vide Finance Act, 2018 i.e., w.e.f. Assessment Year 2018-19. As per the amended provisions the deduction under Part C of the Chapter VI ‘’Deduction in respect of Certain Incomes’’ shall not be allowed to an assessee unless he furnished the return of the Income within the due date prescribed u/s 139(1) of the Act. However, Section 143(1)(a)(v) of the Act that disallowed the deduction claimed under any of the provision of Chapter VI – Part C which includes Section 80P is effective from Assessment Year 2021-22. Hence, the amendment would not apply to the impugned Assessment Year.
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Will it be applicable for AY 2020-21 also?