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TMI Blog2025 (4) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... has not filed its income return and also not considered that the assessee is cooperative society. 4. That on the facts and in circumstances of the case the Ld. CIT(A) has erred not considering Income Tax Return submitted during the assessment proceeding. 5. That the Ld. CIT(A) has erred while passing the order also did not consider the judgment of Hon'ble Apex Court and Hon'ble High Court and several Hon'ble Tribunal's Judgments. 6. That the Ld. CIT(A) has erred not granted personal hearing/Virtual Hearing before passing the erroneous order. 7. That the Ld. CIT(A) has erred by sustaining the levy interest u/s 234A & 234B of the Income Tax Act, 1961. 8. That the Ld. CIT(A) has erred by sustaining the initiating penalty proceedings u/s 271F & u/s 270A(10)(a) of the income Tax Act, 1961. 9. The appellant craves leave add, alter, amend or vary from above grounds of appeal at or before the time of hearing." 2.1 Later on, following additional grounds were raised by the assessee: 1. That on the facts and circumstances of the case the Ld. Assessing officer erred in law by completing assessment without issuing notice u/s 143(2). 2. The appellant craves leav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant having failed to claim deduction u/s 80P of the Act in his return of income filed within the due date specified u/s 139(1) of the Act, has clearly lost his eligibility to claim the benefit of deduction u/s 80P of the Act. I hold accordingly." 4. The Ld. Counsel submitting that the AO had not issued any notice under section 143(2) of the Act; therefore, the assessment was void ab-initio. He cited various case laws. On merit, the Ld. Counsel, placing reliance on various decisions; Moolathara Services Co-op. Bank Ltd. 2019 SCC Online ITAT 11660 Shri Bhairav Seva Samiti 101 ITR (Tribu.) 708 (Mum), Major Suresh Yadav 153 taxmann.com 159 (ITAT, Del), Doreswamaih Sureshbabu 155 taxmann.com 13 (Kar.), Triyogi Narayan Singh 60 taxmann.com 351 (Cal), Absolute Entertainment Pvt. Ltd. 152 taxmann.com 10 (Del) and SBG Infrastructure LLP 130 taxmann.com 319 (Ahd. ITAT), argued that the assessee was entitled for deduction under section 80P of the Act. 5. The Ld. Sr. DR, drawing our attention to various Para of the impugned appellate order, submitted that since the assessee had not filed any ITR; therefore, the deduction under section 80P of the Act was rightly denied by the AO and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l of the statutory provisions, we find that a reading of section 80A(5) and Section 80AC of the IT Act as they stood prior to 1-4- 2018, when the latter provision was amended by Finance Act 2018, would reveal that the statutory scheme under the IT Act was to admit only such claims for deduction under section 80P of the IT Act as were made by the assessee in a return of income filed by him. That return can be under sections 139(1), 139(4), 142(1) or section 148, and to be valid, had to be filed within the due date contemplated under those provisions. Under section 80A(5), the claim for deduction under section 80P could be made by an assessee in a return filed within the time prescribed for filing such returns under any of the above provisions. The amendment to Section 80AC with effect from 1-4-2018, however, mandated that for an assessee to get a deduction under section 80P of the IT Act, he had to furnish a return of his income for such assessment year on or before the due date specified in section 139(1) of the IT Act. In other words, after 1-4-2018, even if the assessee makes his claim for deduction under section 80P in a return filed within time under sections 139(4), 142(1) or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling a return within the due date prescribed under section 139(1) of the IT Act. In other words, the precondition for claiming the deduction under section 80P of the IT Act has now been made more stringent by reducing the time available to an assessee for making the claim. 14. Before parting with these cases, we must also address the arguments of the learned counsel for the appellant/assessee relying on the provisions of section 139(8)/(9) and section 234A of the IT Act. A reading of the provisions of section 139(8) and (9) of the IT Act clearly reveals that even under those provisions, the restrictions placed with regard to the accrual of interest on amounts assessed on an assessee is with regard to the date of filing of a return within the time prescribed under the IT Act. Under section 234A of the IT Act, however, although the provision suggests that even a return filed beyond the time prescribed under any of the provisions of the IT Act can have the effect of limiting the accrual of interest on the amounts assessed against an assessee, we have to see the said provision as permitting a filing of a belated return for the limited purpose of conferring a specific benefit of limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers section 80P also, the assessee has to file return of income. However, the assessee did not file return of income at all and therefore the assessee is not eligible for deduction u/s. 80P of the Act. The Hon'ble Kerala High Court in the case of Nileshwar Rangekallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT [2023] 152 taxmann.com 347 (Kerala) has held as under: - 10. Respectfully following the above judgment, we hold that the assessee is not eligible for deduction u/s. 80P of the Act." 8. In view of the above, this issue of deduction under section 80P of the Act is no longer res integra. The Hon'ble Kerala High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra) has decided the issue in favour of the Revenue. The case laws cited by the Ld. Counsel were prior to the amendment; 01.04.2018; therefore, these are of no relevance. 9. In light of the aforesaid judicial pronouncements, we reject the grounds revolving on the issue of deduction under section 80P of the Act raised by the assessee. It is ordered accordingly. 10. As far as the issues relating to chargeability of interest under section 234A & 234B of the Act ..... 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