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TMI Blog2025 (3) TMI 862X X X X Extracts X X X X X X X X Extracts X X X X ..... to be quashed. 2. On the facts and in the circumstances of the case as well as in law, both the lower authorities have erred in not allowing deduction u/s 80P of the Act to the extent of Rs. 8,43,700/- and hence, the order passed under complete misconception, misconstruction and misinterpretation of the relevant provisions of law and facts of the case, is liable to be quashed. 3. On the facts and in the circumstances of the case as well as in law, both the lower authorities have failed to appreciate that the appellant being the registered co-operative society engaged in the activity of providing credit facilities exclusively to its members-farmers, duly eligible for deduction u/s 80P(2)(a)(i) and 80P(2)(d) of the Act and hence, the ex parte order passed by the AO denying the deduction u/s 80P(2)(a)(i) and 80P(2)(d) of the Act is, being without jurisdiction, unwarranted of facts, arbitrary, perverse, bad in law, illegal and invalid, liable to be struck down. 4. Your appellant further reserves its right to add, alter, amend or modify any of the aforesaid grounds before or at the time of hearing of an appeal." 2. Rival submission of both the parties have been heard and record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e after going through the contents of orders of lower authorities, submits that no return of income was filed by assessee so the Assessing Officer was well within his jurisdiction to disallow the claim under Section 80P of the Act. 4. At the conclusion of hearing, this Bench enquired from the ld. AR of the assessee whether in subsequent assessment year, the assessee is filing return of income under new PAN allotted to Cooperative society or not. The ld. AR of the assessee submits that the assessee is regularly filing return of income in new PAN and ready to place on record, copy of return of subsequent assessment year. On direction of the Bench, the ld. AR of the assessee placed on record copy of return of income from A.Y. 2019-20 to 2024-25 wherein in all return of income, the assessee has shown new PAN number in the name of cooperative society i.e. AAGAT8442C. 5. I have considered the submissions of both the parties and have gone through the orders of the lower authorities carefully. On careful perusal of facts and comparing with the facts of case with Wanka Vividh Karyakari Seva Sahkari Mandali Ltd. Vs ITO, I find that the grounds of appeal raised in the present appeal is squa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion before jurisdictional Commissioner for condonation of delay in filing returned of income. 6. I find that in the present appeal, the dispute is very narrow as to whether the assessee is eligible for deduction under section 80P without filing returned of income. First I deal with the objection of ld Sr DR that in assessing officer has no power to entertain the claim, if not made in the return of income. I find that there is no dispute regarding such restrictions of power of assessing officer, however, being Appellate Authority, such claim of assessee which is emanated from the record of lower authorities can be entertained and admitted by the appeal authorities. I find that such claim was raised by the assessee before assessing officer, therefore, facts related to the issue is emanating from the record of lower authorities, thus, the claim of assessee is admitted. 7. I find that Co-ordinate Benches of Bangalore Tribunal in the case of Prathamika Krishi Pattina, Sahakara Sangha Ltd. (supra) held that provision of Section 80AC which deals with the denial of deduction in respect of certain provision of Chapter VIA, if a returned of income is not filed by assessee, it was held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. Those provisions, as rightly contended by the learned Counsel for the assessee, do not apply to the claim for deduction under section 80P of the Act. Therefore, the Revenue authorities were not justified in not entertaining the claim of the assessee for deduction under section 80P of the Act as made by the assessee. Since neither the AO nor the CIT(A) have examined the other conditions for allowing deduction under section 80P of the Act, I deem it fit and proper to remand the issue of the assessee's eligibility to claim deduction under section 80P of the Act, in the sense with regard to the quantum of deduction and also with regard to the other conditions for allowing deduction under section 80P of the Act, for examining afresh by the AO. I therefore allow the appeal of the assessee for statistical purposes." 8. I further find that Co-ordinate Benches of Nagpur Bench in the case of Krushi Vibhag Karmachari Vrund Sahakari Pat Sanstha Maryadit vs. ITO [2023] 147 taxmann.com 449 (Nagpur-Trib.) also held that making of claim in return of income under section 80A(5) is directory and the authorities below were not justified in rejecting the claim of assessee under section 80P. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pressed into service by the AO for denying the benefit of deduction u/s 80P of the Act, which runs as under: 'Where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.-Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder.' 8. This section provides that where an assessee fails to make a claim in his return of income for any deduction, amongst others, the sections enshrined in Part C to Chapter VI-A (including section 80P and six sections as given in section 80AC), then the deduction shall not be allowed. A perusal of the mandate of section 80A(5) divulges that the claiming of deduction under various sections of part C of Chapter VI-A in the return of income is essential. The reference in this provision is only to return of income, without any further qualification. The return may be u/s 139(1) or 139(4) or any other relevant section. 9. On a conjoint reading of sections 80A(5) and 80AC, it gets manifest that claiming of deduction under various sections of Part C of Chapter VI-A in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see claimed additional depreciation in Form 3AA but the Form was not furnished along with the return of income. Such Form was submitted during the course of assessment proceedings. The AO denied the claim on the ground that the Form 3AA was required to be statutorily filed along with the return of income. The view of the AO was reversed by the Tribunal as well as the Hon'ble High Court by holding that even if the Form was filed during the course of assessment proceedings, it amounted to sufficient compliance. The Hon'ble Supreme Court, taking note of the judgment in CIT v. Shivanand Electronics [1994] 75 Taxman 93/209 ITR 63/119 CTR 94 (Bom.), approved the view of the Hon'ble High Court having the effect that the requirement of filing Form 3AA was a necessary ingredient for claiming additional depreciation, but the timing of filing the Form was a directory requirement, which was fulfilled on filing it even during the course of assessment proceedings. The Hon'ble Bombay High Court in Shivanand Electronics (supra) dealt with the requirement of filing audit report for the purpose of claiming deduction u/s 80J, which required that the report should be filed "along with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot form a part of total income", cannot be equated with mechanism provided for deductions in Chapter VI-A, which deals with "deductions to be made in computing total income". Therefore, none of the decisions which are relied upon on behalf of the assessee on interpretation of Chapter VI-A shall be applicable while considering the claim under section 10B (8) of the IT Act.' 13. Ongoing through the judgments in G. M. Knitting Industries (P.) Ltd. (supra) in juxtaposition to Wipro Ltd. (supra), the principle which emerges is that the fulfilment of requirement of making a claim for exemption under the relevant sections of Chapter III in the return of income is mandatory, but when it comes to the claim of a deduction, inter alia, under the relevant sections of Chapter VI-A, such requirement becomes directory. In the latter case, the making of a claim even after the filing of return but before completing the assessment, meets the directory requirement of making a claim in the return of income. The instant case involves deduction u/s 80P and thence, would be governed by the principle laid down in G.M. Knitting Industries (P.) Ltd. (supra), as per which the making of a claim of deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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