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2023 (6) TMI 115 - AT - Income TaxRectification of mistake u/s 154 - denial of claim for deduction u/s 80P by CPC u/s 143(1)(a) - CIT(A) dismissed the appeal of the assessee on the ground that denial of deduction u/s 80P(2)(d) does not amount to a mistake apparent from the record - HELD THAT:- CIT(Appeals) has dismissed the appeal of the assessee on the ground that the point of difference between computation of book profit made by CPC by denying the claim of deduction under Section 80P as such involved debatable issues and thus was outside the purview of Section 154 of the Act, but on the other hand he has upheld the denial of claim of deduction under Section 80P by way of adjustments u/s 143(1) which, in our view, covers within its scope correction of arithmetical mistakes and adjustment of incorrect claim u/s 143(1) through Centralized Processing of Returns. Also we observe that while the communication of proposed adjustment u/s 143(1) has given one basis for proposed adjustment, however, in the order / intimation issued by u/s 143(1) deduction of claim u/s 80P was denied to the assessee i.e. claim of deduction u/s 80P was denied to the assessee for the first time without any prior communication of proposed adjustment in respect of denial of claim u/s 80P - We observe that the assessee was denied any opportunity to file its objections to the adjustments made in the order / intimation issued by CPC with respect to denial of claim of deduction u/s 80P. Thirdly, we observe that in the instant facts it has not been disputed by the Department that the interest / dividend income was received by the assessee from other Co-operative Societies. On perusal of the return of income filed by the assessee also shows that the said deduction u/s 80P has been claimed by the assessee on the balance income after set off of current year and brought forward losses . Accordingly, there seems to be no justifiable basis for denying assessee’s claim for deduction under Section 80P of the Act, in the instant set of facts. Decided in favour of assessee.
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