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TMI Blog2023 (11) TMI 1244X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s. 80P of the Act cannot be denied to the assessee only on the basis that assessee did not file return of income within due date u/s. 139(1) of the Act. The contention of the Department is that while allowing the appeal of the assessee, the ITAT has not discussed the binding decision of Madras High Court in the case of Veerapampalayam Primary Agricultural Co-operative Credit Society Ltd. vs. DCIT (2022) 138 taxman.com 571, which has held that no claim under any provision of para C of Chapter VIA would be admissible in case of belated return. It was submitted that the scope of intimation u/s. 143(1)(a) of the Act extends to making of adjustments based upon error apparent from the return of income and patent from the record. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d claimed deduction of 5,52,154/- under section 80P of the Act. The issue for consideration before us is that whether once the return of income is filed beyond the prescribed date under section 139(1) of the Act, can the deduction under section 80P of the Act be denied to the assessee, by way of adjustment under section 143(1) of the Act. On going through the statutory provisions, we observe that 80AC of the Act provides that no such deduction under section 80P of the Act shall be allowed to an assessee unless he furnishes a return of his income on or before the due date specified under section 139(1) w.e.f. assessment year 2018-19 onwards. However, section 143(1)(a)(v) of the Act provides that disallowance of deduction claimed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income within the due date stipulated under section 139(1) of the Act w.e.f. assessment year 2018-19 onwards. However, we also note that amendment has been introduced in section 143(1)(a)(v) of the Act to provide that the claim of deduction under section 80P of the Act can be denied to the assessee, in case the assessee does not file its return of income within the time prescribed under section 139(1) of the Act with effect from 01- 04-2021 and does not apply to the impugned assessment year i.e. assessment year 2019-20 relevant to financial year 2018-19. Accordingly, in our considered view, denial of claim under section 80P of the Act would not come within the purview of prima facie adjustment under section 143(1)(a)(v) of the Act, for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(1)(a)(v) of the Act. 7.3 We note that in the case of Chirakkal Service Co-Operative Bank Ltd. Kannur v. CIT 2016] 68 taxmann.com 298 (Kerala), the Kerala High Court held that a return filed by assessee beyond period stipulated under section 139(1) or 139(4) or under section 142(1) or section 148 can also be accepted and acted upon for entertaining claim raised under section 80P provided further proceedings in relation to such assessments are pending in statutory hierarchy of adjudication in terms of provisions of Act. In the case of ASR Engg. & Projects Ltd. [2019] 111 taxmann.com 49 (Hyderabad - Trib.), the ITAT held that to be eligible to make claim under section 80-IA or any other section of Chapter VI A, assessee should have filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailed legal as well as factual finding has to why the denial of claim of deduction u/s. 80P cannot be made by way of prima facie adjustment u/s. 143(1)(a)(v) of the Act for the impugned assessment order i.e. A.Y. 2019-20. We observe that ITAT has given a detailed factual and legal finding/discussion while deciding this issue. Further, the decision cited by Department is not on the issue of denial of claim by way of adjustment made u/s. 143(1)(a)(v) of the Act and has been rendered on its own set of facts while the assessee's facts are on a different footing. Accordingly, on going through the order passed by the ITAT, we find no apparent mistake in the order passed by the ITAT in ITA No. 23/Rjt/2022 so as to call for any interference. 5. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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