Case Law Details
Datta Prasad Sahakari Patsanstha Ltd Vs ITO (ITAT Mumbai)
Introduction: The appeal by Datta Prasad Sahakari Patsanstha against the order dated 21-05-2019, issued by the Commissioner of Income Tax (Appeals), Mumbai, for the assessment year 2011-12, centers around the denial of the assessee’s claim for deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961. Additionally, a secondary issue revolves around the assessee’s status.
Detailed Analysis:
1. Primary Dispute – Deduction under Section 80P(2)(a)(i): Datta Prasad Sahakari Patsanstha, initially filing as a firm, faced rejection of its application for a deduction under section 80P(2)(a)(i) in the return of income. The subsequent rectification application was denied by the assessing officer, leading to an appeal. The Commissioner (Appeals), citing section 80A(5) of the Act, held that the deduction couldn’t be allowed as it was not claimed in the original return.
2. Analysis of Section 80A(5): Section 80A(5) stipulates that failure to claim a deduction in the return of income results in disallowance. The Tribunal examined the provision’s language and its clear mandate. The crucial question arose: whether the conditions of section 80A(5) are mandatory for claiming deduction under section 80P(2)(a)(i). The Tribunal referred to a relevant judgment of the Hon’ble jurisdictional High Court and emphasized that compliance with section 80A(5) is a prerequisite for claiming the deduction.
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