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TMI Blog2025 (5) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... essed dt. 16/04/2020 passed u/s 143(1) of the Act by the Central Processing Centre, Bengaluru ['Ld. CPC' hereinafter] anent to assessment year 2019-20 ['AY' hereinafter]. 2. The case was called up twice for hearing, none appeared at the behest of the appellant. Having regard to the written submission and limited issue involved on the request of the Ld. DR the matter is taken for ex-parte adjudication in the absence of appellant u/s 24 of ITAT-Rules, 1963. Recording the same advanced accordingly. 3. Tersely stated facts of the case are that; 3.1 The assessee is a co-operative society and for the year under consideration filed its return of income u/s 139(4) of the Act on 23/09/2029 declaring total income at NIL after claiming deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoked the provisions of section 80AC(ii) of the Act, and denied the 80P deduction for assessee's default in filing the return within the prescribed time limit in terms of section 139(1) of the Act. 6. As we note, the rival parties has no dispute over the application of provisions of section 80AC(ii) of the Act which for the purpose of allowance of claim u/c VI-A of the Act mandates the filing of return with a such claim therein within the time limit prescribed u/s 139(1) of the Act. That is to say, without disputing the application of section 80AC(ii) of the Act, the appellant by the present appeal only challenges the jurisdiction of Ld. CPC in denying the claim for deduction to it through 'primary adjustment' u/s 143(1) of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ism but invariably passes through first mechanism, therefore the Ld. CPC rightly denied the claim while processing the return. 7. The subject matter of dispute regarding the power of LD. CPC to make disallowance was came before the co-ordinate bench in [ITA No 063/PAN/2025] 'Allamaprabhu VUSS Niyamit Kalloli Allamaprabhu VUSS Niyamit Kalloli Vs ITO', wherein while allowing the appeal filed by the assessee held that, the Ld. CPC at the relevant time of processing return lacked the jurisdiction to carry out disallowance of 80P deduction. It is therefore apt to reproduce the relevant adjudication herein as; 7. The only question for our adjudication is that; 'as to whether the Ld. CPC had a jurisdiction to disallow or deny the claim for dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to Sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or Section 80-IE, the substituted provision of s/c (v) extended its umbrella to Section 10AA or under any of the provisions of Chapter VI-A under the head 'C-Deductions in respect of certain incomes'. No doubt Section 80AC(ii) as amended by the Finance Act, 2018 mandated that even for claiming deduction claimed u/c VI-A of the Act, the return of income was to be filed before the expiry of due date prescribed u/s 139(1) of the Act, however, the enabling jurisdiction clause (v) of s/c (a) of section 143(1) of the Act came into play only w.e.f. 01/04/2021. 10. As on the date of processing the return summarily u/s 143(1)(a)(v) of the Act there was no enabling power vested with the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pra) 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 'C-Deductions in respect of certain incomes'. Accordingly, the enabling provisions to address the amendment in Section 80-AC(ii) 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 u/s 139(1) of the Act. However, for the Ld. CPC to insist upon the compliance by way of making a disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by vacating the impugned disallowance. 13. Without multiplying the judicial precedents on the subject matter, maintaining the parity with the decision of learned co-ordinate benches (supra), we concur with the claim of the appellant society that the Ld. CPC clearly traversed and in fact exceeded its jurisdiction in disallowing the appellant's claim for deduction u/s 80P of the Act. Therefore, same is liable to be vacated. In consequence, we set-aside impugned order of Ld. CIT(A) and direct the Ld. CPC to reverse the disallowance and accept the claim of deduction u/c VI-A of the Act as claimed in the return of income filed by the appellant assessee.' 14. In the absence of anything contrary brought to our notice by the respondent revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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