TMI Blog2023 (3) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... turn was filed belatedly. It was only by the amendment to section 143(1) (a)(v) brought in by Finance Act, 2021, that the CPC can be said have been vested, exercising powers u/s 143(1)(a), to make disallowance on the ground of belated return. Prior to that, as per the un-amended provisions, the AO could disallow a claim u/s 143(1) (a) only on the grounds of arithmetical error or that the Assessee had made an incorrect claim, etc. Reference, in this regard, may be had to Fatehraj Singhvi Ors. v. UOI and Ors [ 2016 (9) TMI 964 - KARNATAKA HIGH COURT ]. It goes without saying that in the absence of enabling powers, no disallowance can be made. As such, enabling provisions being absent, the CPC did not have the jurisdiction to make the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in spite of there being no disallowance of the same, wrongly giving priority to the provisions of section 80AC of the Income Tax Act introduced with effect from 01-04-2018. (iii] The provisions of section 80AC are violative of the constitution because the same have denied the benefits of law of land and that too at a disproportionately high cost compared to other categories of assessees when a very reasonable cost is fixed which is with the object of advisory in nature. (iv) The slight delay in completing the audit by the Govt. of Department and the assessee which is of human nature, without any deliberate, malafide, because of reasonable and sufficient cause, these need to be reasonably, sympathetically and favourably considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that even if the return was filed late, the deduction u/s 80P of the Act should be allowed, as long as the return is filed within the time allowed u/s 139(4) of the Act. 4. By virtue of the impugned order, the ld. CIT(A) dismissed the appeal. It was observed that the provisions of section 80AC are applicable from assessment year 2018-19 onwards; that as per these amended provisions, no deduction under Chapter VIA, Part C can be allowed, unless the return is filed within the time allowed u/s 139(1) of the Act; that the amendment covers deduction u/s 80P as well; that since the provision uses the expression shall , there is no scope to consider reasonable cause, etc.; that in this case, the Audit Report had been obtained after the date pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake disallowance on the ground of belated return. Prior to that, as per the un-amended provisions, the AO could disallow a claim u/s 143(1) (a) only on the grounds of arithmetical error or that the Assessee had made an incorrect claim, etc. Reference, in this regard, may be had to Fatehraj Singhvi Ors. v. UOI and Ors ; 289 ITR 602 (Kar.). It goes without saying that in the absence of enabling powers, no disallowance can be made. As such, enabling provisions being absent, the CPC did not have the jurisdiction to make the disallowance in question, in the order u/s 143 (1) of the Act. For this, we find support from The Lanjani Co-operative Agri Service Society Ltd., VPO Lanjani, Kangra (HP) v. The DCIT (CPC) Bangaluru (supra). 8. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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