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2023 (9) TMI 1220 - AT - Income TaxDenial of deduction u/s 80P - Claim inadmissible in view of section 80AC on the processing of returns u/s 143(1)(a) of the Act - invocation of s. 143(1)(a)(ii) of the Act for effecting a disallowance u/s. 80P r/ws. 80AC for processing a return prior to 01.4.2021 - scope of amendment to section 143(1)(a)(v) including within its scope disallowance of deduction claimed under any provision of Chapter VI-A, sub-heading (C), if the return is filed beyond the date specified u/s. 139(1), being the clear mandate of s. 80AC, is only by Finance Act, 2021 w.e.f. 01.4.2021 - HELD THAT:- The processing of the returns of income in the instant cases has been in July/August, 2020. Section 143(1)(a)(v), which could not have been made applicable prior to 28/3/2021, i.e., the date the Finance Act, 2021 became law, is made applicable w.e.f. 01/4/2021. The provision in the amended form was thus not on the statute at the time of processing of the relevant returns. There is thus no question of the same having been invoked for effecting the disallowance, as being claimed before us. Why, the processing of the return being machine-made, which could not possibly have been updated for the revised procedure prior to 28/3/2021, there is no question of disallowance u/s 80AC of the Act being carried out by the AO u/s. 143(1)(a)(v) of the Act prior to 01/4/2021. The only manner, therefore, whereby the impugned disallowance could be made on processing of a return u/s. 143(1)(a) of the Act is under sub-clause (ii) thereof, which is to be read along with Explanation below section 143(1) of the Act. The date of filing the return, it was submitted by Shri Suresh, is not an information required to be furnished under this Act to substantiate any entry. It cannot therefore be regarded as an invalid claim on the basis of inconsistency u/s. 143(1)(a)(ii) of the Act r/w Explanation thereto. The date of filing the return, he would add, appears only in the acknowledgement to the return, which cannot be regarded as part of the return. We agree. The return form has been scrutinized. The date of filing the return is not required to be entered to substantiate any entry in respect of any claim of deduction and, in fact, cannot possibly be. A return would stand to be regarded as complete in all respects, ready for being filed, on it being verified, and which would therefore only be prior to it’s filing. For the purpose of giving effect to s. 143(1)(a)(v), however, it is permissible to travel outside the return. This further clarifies of sub-clauses (ii) and (v) of section 143(1)(a) as operating in different fields, i.e., without any overlap. The orders by the Tribunal relied upon by the Revenue are w.r.t. the strict interpretation of s. 80AC, which aspect is not disputed, and do not concern the applicability of s. 143(1)(a). The same would therefore not assist it in the matter. The invocation of s. 143(1)(a)(ii) of the Act for effecting a disallowance u/s. 80P r/ws. 80AC for processing a return prior to 01.4.2021 is, thus, not valid in law. We decide accordingly, and the appeals succeed.
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