In the Income Tax Appellate Tribunal Delhi Bench ‘G’, the appeal of Sahakari Ganna Vikas Samiti against the order of the Commissioner of Income Tax (Appeals) – NFAC, Delhi for the assessment year 2019-20 was heard. The core issue was the denial of deduction claimed under Section 80P of the Income Tax Act, 1961 due to late filing of the return.
The Samiti argued that their return, albeit filed a day late due to technical issues, should not preclude the deductions under Section 80P. The appeal highlighted procedural adjustments under Section 143(1) of the Act, where deductions for Chapter VI-A (Section 80P falls under this chapter) were disallowed due to late filing, citing the modifications in the Finance Act of 2021, which however were not applicable for the assessment year in question, 2019-20.
The tribunal examined similar precedents where it was determined that for assessment years prior to 2021-22, such adjustments were not permissible. As a result, the tribunal set aside the order of the CIT(A) and directed the CPC, Bengaluru, to rectify the apparent error and restore the deduction claimed under Section 80P of the Act.
This judgment underlines the tribunal’s stance on adherence to procedural timelines while also acknowledging technical faults that may hinder timely compliance. The case is significant for entities seeking to understand the implications of late filing vis-à-vis deductions under various sections of the Income Tax Act.
Sahakari Ganna Vikas Samiti vs ITO-2(5) Chandausi, Uttar Pradesh (2019-20)
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