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TMI Blog2023 (6) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... processing the said return, disallowed the entire claim of deduction of Rs. 4,61,664/- claimed under Section 80P of the Act in the intimation under Section 143(1) of the Act on 16.04.2020 on the ground that the assessee's claim is not admissible as the return of income was filed belatedly. 4. Being aggrieved by the intimation under Section 143(1) of the Act dated 16.04.2020, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessee filed return of income belatedly but it was not under Section 143(3) the intimation is, but the intimation was under Section 143(1)(a) of the Act wherein the adjustment in respect of Clause (b) of the said Section came w.e.f. 01.04.2021 and, therefore, deduction claimed under Section 80P or the Act should have been granted and not merely be rejected on the ground of late filing of the return. The Ld. AR further submitted that the Assessing Officer had no power under Section 143(1)(a)/(b) of the Act for A.Y. 2019-20 as the Section was introduced/effective from 01.04.2021. The Ld. AR relied upon the decision of Hon'ble Madras High Court in the case of AA520 Veerappampalayam Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of deduction under Section 80P from the grounds of appeal and also from the finding of the CIT(A). 08. From 1st April, 2018, Section 80AC(ii) provides that the deduction under Chapter- C of Chapter- VI-A is not eligible for deduction if the return of income is not filed within the due date prescribed under Section 139(1). In the present case, admittedly the return was filed late. 09. Section 143(1)(a) allows Department to make an adjustment in relation to certain items in the return of income filed. Sub-clause (v) allows the Officer to disallow the claim under Chapter- VI-A, if the return is filed beyond the prescribed time under Section 139(1). 10. Section 143(1)(a)(v) for A.Y. 2019-2020 reads as under: "Disallowance of deduction claimed under Section 10AA, 80IA, 80IAB, 80ID, 80IC, 80ID or section 80IE if the return is furnished beyond the due date specified under sub-section (1) of section 139." This sub-clause was amended from A.Y. 2021-2022 by Finance Act, 2021 which reads as under: "The disallowance of deduction claimed under Section 10AA or under any of the provisions of chapter- VI-A under the heading "C- deductions in respect of certain income" if the return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 143(1)(a)(ii) w.e.f. 01.04.2021. The Assessing Officer does not have power. The Ld. DR filed written submission which is reproduced as under :- "2. In connection with the above, it is to submit that the undersigned was directed to attend SMC bench, ITAT, Ahmedabad on 08.05.2023 as Sr. DR. During the hearing the Hon'ble SMC bench directed the undersigned to prepare a note in case of The Parabada Co. Op. Milk Producers Society Ltd. (ITA No. 128/Ahd/2023) on disallowance of deduction u/s. 80P r.w.s. 80AC. The note on the subject is as follows: I. In the instant case, the assessee filed its return of income after the due date and claimed deduction u/s 80P which was disallowed by CPC, Bengluru while passing the intimation u/s 143(1). II. Assessee filed appeal before NFAC, Delhi against the order of CPC, Bengaluru claiming deductions u/s 80P(2). The assessee contented as below: a) The ACIT CPC has not granted deduction of Rs. 4,61,664 under Section 80P on the ground that there is a delay in filing the return. In this connection, it may please be noted that there is no provision in Section 80P to the effect that the deduction would not be allowed if the return is filled late. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the statutory time limit, or a belated one. This is mechanical exercise and one that can be carried out by the CPC, very much within the scope of section 143(1)(a)(ii) of the Act. c) Here I may refer to the decision of the Hon'ble High Court of Madras in the case of AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. Vs. DCIT [2022] 138 taxmann.com 571 (Madras) AY 2018-19 wherein the Hon'ble Court specially held that no claim under any provisions of Part C of Chapter VIA would be admissible in case of a belated return. In the present case, the return filed for the AY 2019-20 is belated return, therefore, as per ratio laid down by the Hon'ble Madras High Court, the CPC is justified in denying the assessee's claim of deduction u/s. 80OP of the Act. 4. Before CIT(A), no other argument was put forth by Assessee. The adjustment made by CPC, Bengaluru has been rightly upheld by CIT(A). The same requested to be confirmed." 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that though the decision of Hon'ble Madras High Court in case of Veerappampalayam Primary Agricultural Coopera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute on this position. The date of filing of a return of income would be apparent on the face of return and upon a perusal thereof, it would be clear as to whether the return is a valid return, having been filed within the statutory time limit, or a belated one. This is mechanical exercise and one that can be carried out by the CPC, very much within the scope of section 143(1)(a)(ii) of the Act. 9. The conduct of the petitioners is also relevant. Not only have the returns been filed belatedly but the petitioners have also chosen not to co-operate in the conduct of assessment. They are admittedly in receipt of the defect notices from the CPC, but have not bothered to respond to the same. The writ petitions have themselves been filed belatedly and after the elapse of more than six to eight months from the dates of impugned orders, in all cases. It is only when the Revenue has initiated proceedings for recovery by attachment of bank accounts have the petitioners approached this Court. This factor also strengthens my resolve that these are not matters warranting interference in terms of Article under section 226 of the Constitution of India, quite apart from the decision that I have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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