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2023 (7) TMI 859 - ITAT RAJKOTExemption u/s 80P - Adjustment u/s 143(1)(a)(ii) - return of income was not filed within the due date prescribed u/s 139(1) - HELD THAT:- Amendment has been introduced in section 143(1)(a)(v) of the Act to provide that the claim of deduction under section 80P of the Act can be denied to the assessee, in case the assessee does not file its return of income within the time prescribed under section 139(1) of the Act with effect from 01-04-2021 and does not apply to the impugned assessment year i.e. assessment year 2019-20 relevant to financial year 2018-19. Accordingly, in our considered view, denial of claim under section 80P of the Act would not come within the purview of prima facie adjustment under section 143(1)(a)(v) of the Act, for the simple reason that the section was not in force during the period under consideration i.e. assessment year 2019-20. Whether the case of the assessee would fall within the purview of prima facie adjustment under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return)? -The Explanation to the said section 143(1)(a)(ii) specifically provides for cases/instances when the claim made by the assessee could be said to be “incorrect”. Therefore, in our considered view, the case of the assessee would also not fall within the purview of prima facie adjustment under section 143(1)(a)(ii) (an incorrect claim, if such incorrect claim is apparent from any information in the return). Denial of deduction u/s 80-P of the Act cannot come within the purview of a prima-facie adjustment u/s 143(1) of the Act, especially in light of absence of an enabling provision during the impugned assessment year, which came to be introduced only during the succeeding assessment year. Claim of deduction u/s 80P of the Act cannot be denied to the assessee only on the basis that the assessee did not file return of income its return of income within due date u/s 139(1) of the Act, by way of prima facie adjustment u/s 143(1) of the Act - Decided in favour of assessee.
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