9911796707
TMI Blog2025 (4) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and pertain to the disallowance of the claim of deduction u/s 80P of the Act amounting to Rs. 35,86,483/- only. 3. The relevant facts are that the assessee is a cooperative society and engaged in the business of providing credit facility to the members. The assessee for the year under consideration i.e. A.Y. 2020-21 did not file return of income as per section 139(1) of the Act. The time limit for filing the belated return as per section 139(4) of the Act was also lapsed. Hence, the assessee filed updated return as per the provision of section 139(8A) of the Act as on 26th September 2022 wherein declared total income at NIL after claiming deduction under section 80P(2)(a(i) of the Act for Rs. 35,86,483/- only. 4. The return filed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requisite tax in compliance to Part-B-ATI of the updated return of income. 11. I have heard the rival contentions of both the parties and perused the materials available on record. In the present appeal, the core issue relates to the disallowance of the assessee's claim for deduction under section 80P of the Act, amounting to Rs. 35,86,483/-, as processed under section 143(1) of the Act. The assessee is a cooperative society engaged in the business of providing credit facilities to its members. For the assessment year 2020-21, the assessee failed to file its return within the due date prescribed under section 139(1) of the Act. Furthermore, the time limit for filing a belated return under section 139(4) had also lapsed. Consequently, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39(8A) of the Act was declared invalid by CPC for non-compliance with procedural requirements, it ceased to exist for legal purposes, and therefore could not form the basis for any further intimation or adjustment under section 143(1) of the Act. I further observe that where no valid return exists, any disallowance of claims must be undertaken through regular assessment proceedings under section 144, not through summary processing under section 143(1) of the Act. Accordingly, the impugned intimation dated 29th December 2023 issued by CPC is held to be bad in law and void ab initio. The disallowance made therein is therefore liable to be set aside. Consequently, the appeal of the assessee is allowed, and the orders of the CPC as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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