https://jaydeepmitra.com/
IT Return Filed Aft...
 
Notifications
Clear all

IT Return Filed After Due Date Deductions Denied U/S 80AC

1 Posts
1 Users
0 Likes
41 Views
(@jaydeepmitra2022)
Posts: 246
Honorable Member
Topic starter
 

IT Return Filed After Due Date Deductions Denied U/S 80AC

 

Mumbai Bench of Income Tax Appellate Tribunal (ITAT) refused the claim towards the deduction as the ITR was not able to furnish post to the last date specified under Section 80AC of the Income Tax Act 1961.

The assessing officer does not permit the claim for the deduction under Section 80P(2)(d) of the Income Tax Act, 1961 since the applicant, Janki Vaishali Co-operative Housing Society Limited does not furnish ITR on the given due date as defined under Section 139(1) of the Income Tax Act.

For the department, Beena Santosh repeated the decision of the Commissioner of Income Tax Appeals (CIT(A)), the taxpayer is not qualified for the deduction u/s 80P of the Income Tax Act under provisions of section 80AC of the Income Tax Act.

 

आयकर अपील􀀊य अ􀀋धकरण
मुंबई पीठ “एस एम सी” , मुंबई
􀀖ी 􀀗वकास अव􀀚थी, 􀀝या􀀞यक सद􀀚य के सम􀀡
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH “SMC”, MUMBAI
BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER
आअस.ं 944/मं/ु 2022 (􀀞न.व 2018-19)
ITA NO.944/MUM/2022(A.Y 2018-19)
Janki Vaishali Co-operative Housing Society Limited,
Plot No.1521, Janki Vaishali,
Juhu Church Road, Janki Kutir,
Juhu, Mumbai 400 049.
PAN: AACAJ-4400-A ...... अपीलाथ􀀧 /Appellant
बनाम Vs.
The Commissioner of Income Tax (Appeals),
National Faceless Appeal Centre,
Delhi. ..... 􀀨􀀞तवाद􀀊/Respondent
अपीलाथ􀀧 􀀪वारा/ Appellant by : Shri Manoj Mahimkar
􀀨􀀞तवाद􀀊 􀀪वारा/Respondent by : Ms. Beena Santosh
सुनवाई क􀀫 􀀞त􀀋थ/ Date of hearing : 03/08/2022
घोषणा क􀀫 􀀞त􀀋थ/ Date of pronouncement : 31/10/2022
आदेश/ ORDER
This appeal by the assessee is directed against the order of
Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi
[ in short ‘the CIT(A)’] dated 10/03/2022 for the Assessment Year 2018-19.
2. The assessee in appeal has assailed the findings of the CIT(A) in
disallowing assessee’s claim of deduction u/s 80P(2)(d) of the Income Tax Act,
1961 [ in short ‘the Act’] on the pretext that the assessee had not filed return
of income within due date as specified u/s. 139(1) of the Act .
2
ITA NO.944/MUM/2022(A.Y 2018-19)
3. Shri Manoj Mahimkar appearing on behalf of the assessee submitted
that assessee is a Co-operative housing Society. During the period relevant to
the assessment year under appeal, the assessee has earned interest income of
Rs.2,96,681/- from deposits with Co-operative Banks. The assessee claimed
deduction of the aforesaid amount under the provisions of section 80P (2) (d)
of the Act . The return of the assessee was processed u/s. 143(1) of the Act
disallowing assessee’s claim of deduction u/s. 80P(2)(d) of the Act. Aggrieved
by the order/ intimation dated 31/05/2019 u/s 143(1) of the Act, the assessee
filed appeal before the CIT(A). The CIT(A) dismissed the appeal of assessee on
the ground that the due date for filing of return of income for Assessment
Year 2018-19 was 31/10/2018, whereas, the assessee filed return of income
on 24/12/2018. Since, the appeal has been filed beyond due date the benefit
of section 80P of the Act cannot be allowed to the assessee.
The ld. Authorized Representative for the assessee submitted that a
perusal of section 80AC as it was applicable to the Assessment Year 2018-19
would show that the said section had no application in respect of deduction
claimed u/s 80P of the Act. The provisions of section 80AC of the Act were
only applicable in respect of deduction claimed u/s 80IA, section 80IAB, section
80IB, 80IC, 80ID and 80IE of the Act. The provisions of section 80AC were
amended by the Finance Act, 2018 w.e.f. 01/04/2018 to include all deductions
claimed under Chapter- VIA under heading “C – Deductions in respect of
certain incomes”. The ld. Authorized Representative for the assessee pointed
that the reasons given by CIT(A) for disallowing assessee’s claim of deduction
u/s 80P would not hold good in the light of the provisions of section 80AC of
the Act as applicable to the Assessment Year under appeal.
3
ITA NO.944/MUM/2022(A.Y 2018-19)
4. Per contra, Ms. Beena Santosh representing the Department
vehemently defended the impugned order and prayed for dismissing appeal
of the assessee. The ld. Departmental Representative submits that the
assessee had field return of income beyond due date, hence, the assessee is
not eligible for deduction u/s 80P in the light of provisions of section 80AC of
the Act.
5. Both sides heard, orders of authorities below examined. Undisputedly,
assessee filed return of income on 24/12/2018 i.e. beyond the due date for
filing return of income u/s. 139(1) of the Act for the Assessment Year 2018-
19. The solitary reason for denying benefit of deduction u/s 80P of the Act is
that the return filed by the assessee for the impugned assessment year is
beyond the due date.
6. The ld. Authorized Representative for the assessee has brought to the
notice of Bench that the provisions of section 80AC of the Act as applicable to
Assessment Year under appeal contained no restriction of due date for filing
return of income for claiming deduction u/s 80P of the Act. The provisions of
section 80P of the Act prior to amendment are reproduced herein below:
“Deduction not to be allowed unless return furnished.
80AC. Where in computing the total income of an assessee of any previous year relevant to
the assessment year commencing on the 1st day of April, 2006 or any subsequent
assessment year, any deduction is admissible under section 80-IA or section 80-
IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE, no such deduction shall
be allowed to him unless he furnishes a return of his income for such assessment year on or
before the due date specified under sub-section (1) of section 139.”
The aforesaid provisions were substituted by the Finance Act,2018 w.e.f.
01/04/2018 by the following provisions:
4
ITA NO.944/MUM/2022(A.Y 2018-19)
“ Deduction not to be allowed unless return furnished.
80AC. Where in computing the total income of an assessee of any previous year relevant to
the assessment year commencing on or after—
(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is
admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-
IC or section 80-ID or section 80-IE;
(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter
under the heading "C.—Deductions in respect of certain incomes",
no such deduction shall be allowed to him unless he furnishes a return of his income for such
assessment year on or before the due date specified under sub-section (1) of section 139.”
A bare perusal of the un-amended provision would show that there was no
restriction for claiming deduction u/s 80P of the Act even if the return was filed
beyond due date as specified u/s. 139(1) of the Act. The restriction was applicable
only to the specified sections mentioned in section 80AC of the Act. The scope of
section was enlarged by the Finance Act 2018 to include all deductions admissible
under Chapter-VIA under the heading “C-Deduction in respect of certain incomes”
The substituted section w.e.f. 01/04/2018 would be a

 
Posted : 18/12/2022 6:11 pm
Share:
back to top