TMI Blog2023 (6) TMI 1311X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, in this regard, may be had to Fatehraj Singhvi 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 disallowance in question, in the order u/s 143(1) of the Act. For this, we find support from the decision of The Lanjani Cooperative Agri Service Society Ltd., VPO Lanjani, Kangra (HP) [ 2022 (9) TMI 345 - ITAT CHANDIGARH] as held admittedly the provision enabling the AO to pass an order relying upon sub-clause (5) of Section 143(1)(a) was not on the Statute for 2018-19 assessment year. Accordingly, for the detailed reasons hereinabove, setting aside the impugned order, the appeal of the assessee is allowed. - Shri A.D. Jain, Vice President And Shri Vikram Singh Yadav, Accountant Member For the Assessee : Shri Vishal Mohan, Sr. Advocate with Shri Praveen Sharma, Advocate. For the Revenue : Shri Dharamvir, JCIT-Sr. DR. ORDER PER VIKRAM SINGH YADAV, A.M. This is assessee s appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the decision of the ITAT, Chandigarh Benches, rendered on 30.08.2022 in The Lanjani Co-operative Agri Service Society Ltd., VPO Lanjani, Kangra (HP) vs. The DCIT (CPC) Bangaluru (ITA No. 332-338/Chd/2021), for assessment year 2018-19 and other cases. 7. On the other hand, the ld. DR has placed strong reliance on the impugned order and the decision of the Hon ble Madras High Court in the case of Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. Vs DCIT. 8. In his rejoinder, the ld AR submitted that the Coordinate Bench in case of The Lanjani Co-operative Agri Service Society Ltd (supra) has duly considered the decision of the Hon ble Madras High Court as referred to by the ld Sr DR. 9. We have heard the rival contentions and have perused the material on record. It is not in question that section 80AC of the I.T. Act, as amended by Finance Act, 2018, stipulated that for claiming deduction u/s 80P of the Act, the return of income was required to be filed before the due date, as prescribed by section 139(1) and in the present case, the return was filed belatedly. However, it was only by the amendment to section 143(1) (a)(v) brought in by Finance Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80- IC or or; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading C. Deductions in respect of certain incomes , no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.] d) Thus, from 01.04.2018, the clause(i) of the above section has become inoperative and clause (ii) was introduced which provides that all the deductions falling under the heading 'C of Chapter VIA of the Act will be allowed only when ITR is furnished before the due date specified u/s 139(1) of the Act. This amendment became effective from AY. 2018-19. e) In the present case the due date of filing ITR for AY. 2018-19 was 31.08.2018. However, the Appellant filed its return on 13.10.2018 i.e. after the due date for filing of ITR. Appellant had claimed deduction u/s 80P of Rs. 1,11,421/-. As discussed above Section 80P falls under the heading 'C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied) 14.2 It is a matter of fact that sub-clause (v) of Section 143(1)(a) was amended by the Finance Act, 2021 wherein instead of reference to Sections 10AA, 80-IA, 80- IAB, 80-IB, 80-IC, 80-ID or Section 80-IE, the provision instead makes a mention of Section 10AA or under any of the provisions of Chapter VI-A under the head CDeductions in respect of certain incomes . Accordingly, the enabling provisions to address the amendment in Section 80-AC by Finance Act, 2018 came into play only in 2020-21 assessment year. Thus, no doubt Section 80AC as amended by the Finance Act, 2018 mandated that even for claiming deduction claimed u/s 80P, the return of income was to be filed before the due date as specified under sub-section (1) of Section 139. However, for the AO to insist upon the compliance by way of making a disallowance, the power was vested in the said Authority only vide Finance Act, 2021. Hence, in the absence of the enabling provisions, the CPC Bangalore lacked the jurisdiction to make this disallowance in the order u/s 143(1). Accordingly, on facts, I find that the appeal of the assessee has to be allowed. 14.3 Before parting, it may also be relevant to ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the decision of the Apex Court in the case of CIT Vs B.C. Srinivasa Shetty 128 ITR 294 fully supports the view taken. The Court therein at page 299 has held as under : ..The character of the computation provisions in each case bears a relationship to the nature of the charge. Thus, the charging section and the computation provisions together constitute an integrated code. When there is a case to which the computation provisions cannot apply at all, it is evident that such a case was not intended to fall within the charging section. Otherwise one would be driven to conclude that while a certain income seems to fall within the charging section there is no scheme of computation for quantify it .. (emphasis supplied) 14.6 In the facts of the present case, admittedly the provision enabling the AO to pass an order relying upon sub-clause (5) of Section 143(1)(a) was not on the Statute for 2018-19 assessment year. Accordingly, for the detailed reasons hereinabove, setting aside the impugned order, the appeal of the assessee is allowed. 10. For the above discussion, finding merit in the grievance raised by the Assessee, the same is accepted. The order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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