Income Tax Appellate Tribunal - Chandigarh
The Lanjani Co-Operative Agri Service ... vs Dcit,Cpc/Ito-Ward-, Dharamshala on 30 August, 2022
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "एकल सद यीय', च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH
BENCH 'SMC' CHANDIGARH
ीमती दवा संह, या#यक सद य
BEFORE: SMT. DIVA SINGH, JM
आयकर अपील सं./ ITA No. 332/CHD/2021
नधा रण वष / A.Y : 2018-19
The Lanjani Co-operative बनाम The DCIT,
Agri Service Society Ltd., VS CPC,
VPO Lanjani, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AACAT6299H
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No. 333/CHD/2021
नधा रण वष / A.Y : 2018-19
The Chhata Cooperative बनाम The DCIT,
Agri Service Society Ltd., CPC,
VS
Fatehpur, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AAFAT329H
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No. 334/CHD/2021
नधा रण वष / A.Y : 2018-19
The Barwara Co-operative बनाम The DCIT,
Agri Service Society Ltd., CPC,
VS
VPO Gherori, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AADAT2806K
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No. 335/CHD/2021
नधा रण वष / A.Y : 2019-20
The Barwara Co-operative बनाम The DCIT,
Agri Service Society Ltd., CPC,
VS
VPO Gherori, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AADAT2806K
अपीलाथ /Appellant यथ /Respondent
ITA/332 to 338/CHD/2021
Page 2 of 16
आयकर अपील सं./ ITA No. 336/CHD/2021
नधा रण वष / A.Y : 2018-19
The Beh Co-operative बनाम The DCIT,
Agri Service Society Ltd., VS CPC,
VPO Beh, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AADAT2785P
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No. 337/CHD/2021
नधा रण वष / A.Y : 2019-20
The Beh Co-operative बनाम The ACIT,
Agri Service Society Ltd., VS CPC,
VPO Beh, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AADAT2785P
अपीलाथ /Appellant यथ /Respondent
आयकर अपील सं./ ITA No. 338/CHD/2021
नधा रण वष / A.Y : 2018-19
The Garoh Co-operative बनाम The DCIT,
Agri Service Society Ltd., CPC,
VS
VPO Garoh, Kangra (HP). Bangaluru.
थायी लेखा सं./PAN No: AACAT6299H
अपीलाथ /Appellant यथ /Respondent
नधा रती क! ओर से/Assessee by : Shri Vishal Mohan,Advocate
राज व क! ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr.DR
सन
ु वाई क! तार&ख/Date of Hearing : 08.06.2022
उदघोषणा क! तार&ख/Date of Pronouncement : 30.08.2022
आदे श/ORDER
Th e s e s e v e n a p p e a l s h a v e b e e n f i l e d b y t h e d i f f e r e n t assessees pertaining to 2018-19/2019-20 assessment year wherein the correctness of the separate orders dated ITA/332 to 338/CHD/2021 Page 3 of 16 28.09.2021, 09.09.2021, 25.09.2021, 25.09.2021, 15.09.2021, 14.09.2021 and 15.09.2021 passed by C I T( A) (NFAC i.e. National Faceless Appeal Centre) Delhi as First Appellate Authority is challenged on identical grounds and facts. Accordingly, it was a common request of the parties before the Bench that the arguments advanced in I TA 3 32 /CHD /20 21 w oul d app ly to the re maining six appeals as the facts, circumstances and position of law remain the same.
2. Th e grounds raised in I TA 332/CHD/2021 are reproduced hereunder for the sake of completeness:
1. That in the facts and circumstances of the case the Ld Commissioner of Income Tax (Appeals) is not justified in upholding the disallowance of deduction claimed under section 80P of the Income Tax Act, 1961 and that too under section 143(1) of the Income Tax Act, 1961.
2. That the order of the Ld Assessing Officer is bad in law and Facts.
3. Th e rele vant facts of the case are that the asse ssee who i s a p r i m a r y a g r i c u l t u r a l c o o p e r a t i v e s o c i e t y f i l e d i t s I TR f o r AY . 20 18-1 9 on 13 .1 0.2018 declari ng 'nil' in come by c lai ming deduction u/s 80P of Rs.1,11,421/-.
3.1 Th e said return was processed u/s 143(1) by CPC, Bangalore. Intimation u/s 143(1) dated 31.05.2019 was se rve d on assessee on 17.06.2019 assessing total i nc ome of the assessee at Rs.1,11,420/-.
ITA/332 to 338/CHD/2021 Page 4 of 16 3.2 In the present case the due date of filing of the return w as 3 1.08.201 8. The assessee has filed its return after the due date on 13.10.2018. Similar is the position in the remaining appeals as all the assessees filed their respective returns after the due date.
4. Th e assessee aggrieved with the disallowance of its deduction claimed u/s 80P by the intimation u/s 143(1) of the Act by CPC, Bangalore carried the issue before the First Appellate Authority assailing the disallowance. The assessee's appeal did not succeed. The ad di tion made by way of a disallowance was sustained.
5. Aggrieved the assessee is in appeal.
6. Th e ld . AR invi ting attention to the impugned order submitted that the disallowance has been made merely because the return was filed beyond the due date. It was submitted that prior to this year, there was no such re quire me nt. Only on account of A me nd me nt car ried out in Se ction 80AC by Finance Act 2018, the requirement according to the Revenue was there. He agreed that as a result of this amendment from 2018-19 assessment year, the deductions falling in the heading "C" of chapter VIA of the In come Tax A ct,1 9 61 can be said to be b rou ght i n the ambit of this section. However, at the relevant point of time, no ITA/332 to 338/CHD/2021 Page 5 of 16 such powers were vested with the CPC Bangalore. The enabling provision to do so u/s 143(1) was available on the Statute only by the Finance Act, 2021. Referring to the provisions as they stood in 2018-19 and 2019-20 assessment year, it was argued that as per law, the claim u/s 143(1)(a) could be disallowed by the AO herein CPC Bangalore only on the grounds of arithmetical error or that the assessee had made an incorrect claim etc. but not on the grounds that the return was filed beyond the due date. It was submitted that the assessee Society is eligible for deduction u/s 80P and all informations related to this deduction was correctly provided. Inviting attention to Section 143(1)(a)sub clause
(v) as it then stood at the relevant point of time, it was argued there was no mention of Section 80P therein. 6.1 It was re-iterated that only by the Finance Act, 2021 wherein sub-clause (v) of Section 143(1)(a) was amended that the CPC, Bangalore could be said to be vested with the jurisdiction to make a disallowance on the grounds of return filed beyond the due date exercising the powers u/s 143(1)(a).
6 .2 . Re l ia n ce for the p r op osi ti on of l a w a s a va i l a b le in ne a r si mi la r fa c ts a nd legal p osi ti on tho ugh in th e c onte xt of d if f e re n t p r ov is ions w a s p la c e d u p on th e de ci si on of t he H on 'ble ITA/332 to 338/CHD/2021 Page 6 of 16 Ka r n a ta k a H ig h C o ur t i n the ca s e of F a t e h r aj S i ng h v i & O r s . V s UOI & ors (2016) 289 CTR 0602 (Kar). A pa rt fr om t h a t or d e r s of th e d i ffe re n t Be nc he s of the I TA T were a l so r e l ie d up on p le a d in g t ha t the e n a b li n g p r ovisi on s h a vi n g b ee n i n tr od uce d b y the F i na n ce A ct, 2 0 2 1 e f fe ctiv e f r om 01 . 04 . 2 02 1 by w a y of a me n d me n t of sub -c la u se ( v) of S e c ti on 1 43 ( 1 ). Acc or d in gl y, p r ior to the as se s sme n t ye a r 2 02 0 -2 0 21 d is a ll ow a n ce of d e d uc ti on cl a i me d u /s 8 0 P on t he gr ou nd s of l a te fi l in g of r e tu r n b y a n or de r u /s 14 3 ( 1) wa s n ot i n a cco rd a n ce w i th l a w . 6 .3 Re l ia n ce wa s a lso p la c e d up on va r io us d e c is io ns t o a rg ue th a t a bs e n ce of e n a b li n g p r ov is ions th e or de r i s san s po we r s. D e ci s ion of the I TA T, C h a nd i g a r h i n M / s S o n a l a c P a i n t s & C o a t i n g L t d. V s D C I T i n I TA 1 15 8 / C H D/2 0 1 7 d a te d 0 1 . 05 . 2 01 8 ; H I MU D A N i ga m Vi ha r , S h iml a V AC I T i n I TA N os. 4 80 , 48 1 & 9 7 2/C HD /2 0 12 d a t e d 1 0 .0 5 . 20 1 9 ; d e ci si on d a te d 05 .1 0 .2 0 1 5 of H on' bl e De l hi H igh C our t in t he ca s e of CI T-VI V s M /s U ni te ch Ltd . a nd d e c is ion d a te d 0 8 . 11 . 201 9 of I TA T, Luc k now B e nc h in D y. C I T, C e n tr a l C ir c le - 1, Ka np ur V s M /s Ra ma Me d i ca r e Ltd . i n I TA N o. 1 83 / L KW /2 0 19 w e r e sp e c if i ca l ly re fe r re d to.
7. Sr .D R Ms .Ra n j e et Ka u r r e l ie d on the or de r .
8. Th e l d . A R w a s r e q ui re d to a d d ress th e Be n ch on w he the r th e re w a s a ny de c is i on a ga i ns t the a s se s se e o n th e is sue . In r e s po nse the re to, l d . A R i n a l l fa i r ne ss i n vi te d a tte nt ion to t he ITA/332 to 338/CHD/2021 Page 7 of 16 d e c is ion of the H o n ' b l e M a d r a s H i g h C o u rt in WP N o. 7 0 3 8 of 2 0 20 d a te d 0 7 .0 4 .2 0 2 1 in t he c a se of V e e r a p p a m p al a y am P r i m a r y A g r i c u l t u r a l C o o p e r a t i v e Cr e d i t S o c i e t y L t d. V s D C IT .
9. C op y o f th e sa id d e c is ion w a s di r e c te d to be fi le d a n d ma d e a va i l a bl e to th e S r .D R.
10. Ti me w a s g iv e n to the p a r tie s to b e p re p a re d to a d d re ss th e sa i d de c is io n on th e ne xt d a te.
11. On the ne x t da t e , l d . A R re fe r rin g to th e sa i d de ci si on su b mit te d th a t it w a s di s tin gu isha b l e a s the dec i si on i s ve r y f a ct sp e c if ic . Th e po si ti on of l aw a s a r gu e d b y th e a s se sse e s b e f ore the F ir s t Ap p e l l a te Au th orit y e xtr a c te d i n th e or de r a n d b e f ore t he I TA T h a s n ot be e n a r gue d , he nce the n on- a va i la b i li ty of th e e na b l in g pr ov is io n i n th e Sta tu te a t the re le va n t p oi nt of ti me ha s n ot b een c on si de re d b y th e C our t.
1 1 .1 D i sti ng ui sh in g the s a id d e ci si on , i t w a s f ur th e r s ub mi tte d th a t f i rs tl y, i t w a s a n e x-p a r te or d e r w he re t he a ss e ssee w a s n ot p r e se nt no r he a rd . I t w a s furt he r a r gue d that th e de c is ion r e n de re d w a s in the con te xt of the pr a ye r i n t he W r i t Pe ti tion on f a cts a s a v a i l a b l e . At te n tio n w a s a l so i n vi te d to th e f a ct th a t t he pe ti ti one r s the re i n we re r e pe a te d l y fou nd to b e no n- co op e r a ti ve w i th th e Re ve n ue r i gh t f r om the a s se s sme n t p r oce e d in gs sta ge . F or the sa i d p ur p os e s, p a r a 9 of th e s a id or d e r w a s re fe r re d to. I t w a s hi s su bmi s si on th a t th e re i n the ITA/332 to 338/CHD/2021 Page 8 of 16 C ou r t went on to ca t e gor i ca l ly ob s e r ve th a t th e a sse ssee p e ti ti one r s d id not c oop e r a te a n d i t w a s not ic e d t ha t th e w ri t p e ti ti on s we re f i le d be l a te d l y i .e . a f te r mo re th a n 6 t o 8 mo nth s and on ly when th e Re ve n ue had i ni ti a te d pr oc ee d i n gs for r e c ove ri n g by a tta c hi n g th e b a nk a cc oun ts e tc . th a t the p e ti ti one r s we re f oun d t o h a ve ap p r oa ch e d the Cour t i nv ok in g th e w ri t ju r is d ic ti on.
1 1 .2 I n th e fa c ts of t he p r e se n t c a se , i t wa s hi s su b mi s si on th a t th e non e of the a sse ssee s h a ve be e n fou nd to b e no n- co op e r a ti ve . Th e y h a ve co ope r a te d in the p roc ee d i ng s a ll a l ong . I t is on ly a c a se w he re in th e re tu r n w a s fil e d la te . Th e a ss e s see h a s a ll a lon g bee n l i ve a n d a le r t in a pp r oa c hi ng th e F ir s t A pp e l l a te Au thor i ty w e l l w i th in ti me a nd a g a in th e a pp e a l b e f ore the I TA T a l so h a s be e n f i le d w e l l w i thi n ti me . Th e r e i s n o d e l a y.
1 1 .3 A p a rt from re fe rr i n g to pa r a 9 it was a r gue d th a t f oll ow i ng s pe ci fi c fa c ts a s a va i l a b l e be f ore th e H on 'b le C o ur t for co ns id e r a ti on wer e re fe rre d to so a s to a r g ue t ha t t he y a re n ot a p p li ca b l e to the p r e se n t a sse sse es . Th e se re a d a s un d e r :
(iii) disallowance of loss claimed if the returns were filed beyond the due date, (iv) disallowance of expenditure indicated in the audit report but not taken into account in computing total income (v) disallowance o f d e d u c t i o n claimed u n d e r specified provisions of the Act i f the return was filed beyond due date or
(vi) additional income appearing in Form 26AS or 16A or l6, which has not been taken into account in computing total income. According to them, there is no error ITA/332 to 338/CHD/2021 Page 9 of 16 as aforesaid that emanates from the returns of income tiled by the petitioners and as such, the invocation of Section 143 (1)(a) of the Act is itself flawed.
1 1 .4 Emp h a si s w a s a l so l a id on the fol l ow in g a r gume nt f or co ns id e r a ti on be for e t he C o ur t w hi ch is n ot the a r gume nt a d va n ce d i n the p r e se n t ca se :
"5 Learned counsel for the petitioners would than argue that the Explanation under Section 143(1)(a) of the Act explains an incorrect claim' for the purpose of Clause (ii) of Section 143 (l) (a) of the Act, as meaning a claim based on an entry in a return of income. According to them, the date of return does not constitute an 'entry' and hence no adjustment is called for on this score.
1 1 .5 I t was s ub mi tte d th a t in t he l i ght of th is f actu a l b a ck gr ou nd a n d a r gu me n t, t he H on 'b le C our t i n a n e x-p a r te or d e r con si de re d the i ss ue i n the fol l ow in g ma nn e r :
7. The scope of an 'intimation' under Section 143 (1) (a) of the Act, extends to the making of adjustments based upon errors apparent from the return of Income and patent from the record. Thus to say that the scope of 'Incorrect claim' should be circumscribed and restricted by the Explanation which employs the term 'entry' would, in my view, not be correct and the provision must be given full and unfettered play. "
(emphasis supplied) 1 1 .6 I n vi ti n g a tte ntion to p a r a 9 o f the a for e sa i d de ci si on a ga i n , i t w a s su b mit te d , th a t c om me n tin g u po n th e co nd uc t of th e pe ti tio ne rs wh e re i n the y ha d not b oth e re d t o r e s p ond to t he d e fe ct no tice s fro m th e C P C a n d non coop e r a t ion on th e pa r t of th e pe ti tio ne rs w h e re i n the wr i t ju r is di ct ion o f t he C ou r t w a s a l so i n vok e d on a c cou nt o f t he fa c t th a t th e Re ve nue h a d i ni ti a te d p r oce ed i ngs for r e c ove r y by a t ta ch me n t of bank a cc oun t a n d th e re w a s a l a pse o f 6 to 8 mont hs in f il i ng of t he w r it p e ti ti on s we r e a l l the fa c tors ta k e n i nto consi d e r a ti on to ITA/332 to 338/CHD/2021 Page 10 of 16 a d d r e ss the p ra ye r i n the W r it p roce e d in gs . I t i s in tha t f a ctu a l b a ck gr ou nd tha t th e C ou rt w a s p le a se d to ho ld a s un d e r :
"9. The conduct of the petitioners is also relevant. Not only have the returns been filed belatedly but the petitioners have also chosen not to co-operate in the conduct of assessment. They are admittedly in receipt of the defect notices from the CPC, but have not bothered to respond to the same. The writ petitions have themselves been filed belatedly and after the elapse of more than six to eight months from the dates of impugned orders, in all cases, it is only when the Revenue has initiated proceedings for recovery by attachment of bank accounts have the petitioners approached this Court."
1 1 .7 Acc or d in gl y, i t w a s hi s s ub mi ssi o n t ha t th e sai d de ci si on p r oce e d s on f a cts pe cu li a r to it s ow n. Re l ia n ce w as pl a ce d up on d e c is ion of th e H on' ble S upr e me C ou rt in the c a se o f C IT V s B . C. S r in i v a s a S h e t t y 1 2 8 I T R 2 9 4 ( S . C ) fo r a ll ow i ng re lie f to th e a sse ssee .
12. Th e ld . S r .D R re l ie d up on the ord e r s. Spe c if i c atte n ti on w a s i nvi te d to p ar a 8 . 1 of th e sa i d d e c is i on.
1 2 .1 A pa r t f r om r e l yin g u po n p a r a 8. 1 sh e fu r the r p l a ce d r e l i a nce u pon th e de ci si on of t he Ape x C our t i n C i vi l Ap p e a l N o. 3 32 . 7 of 2 0 1 7 d a te d 3 0 . 07 . 20 18 i n th e ca se of C o m m i ss i o n e r o f C u s t o ms ( I mp or t ) , M u m b a i v s M / s D i l ip K u m a r a n d C o mp a n y & S o n s f or the fol l ow i ng p r op osi ti on :
"(2) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue."
13. Th e l d. A R su b mi tte d th a t t he de c is i on is n ot ap pl i ca b l e .
14. I ha ve he a r d the s ub mi ss ion s a nd p e r u se d t he ma te r i a l on r e cor d . S i nce he a vy re li a n ce h a s be e n p l a ce d b y t he ld .
ITA/332 to 338/CHD/2021 Page 11 of 16 S r. D R on the imp ugn e d or d e r , sp e ci fi c p a r a 8.1 . Fo r re a d y r e fe re n ce of the sa me is e x tr a cte d h e re u nde r : "8.1 Finding on Ground of appeal Nos. 1 to 3
a) The CPC Bangalore has made the addition/adjustment of Rs.1,11,421/- u/s 143(1) of the Act as deduction u/s 80P claimed of Rs.1,11,421/- was disallowed on the ground that return was not filed within the due date. The undersigned has gone through the 143(1) intimation and written submissions filed by the Appellant. These Grounds of Appeal are discussed and decided in subsequent paras of this order.
b) It is not in dispute that from AY. 2018-19, the Appellant for claiming deduction u/s 80P has to file return of income within the due date of filing of ITR as provided in Section 80AC of the IT Act, 1961. Section 80AC was amended by Finance Act, 2018. From AY. 2018-19, all the deductions falling under the heading 'C of Chapter VIA of IT Act, 1961 were brought into the ambit of this section. Section 80P also falls under the heading 'C of Chapter VIA of the Act is included in Section 80AC of the Act.
c) The amended Section 80AC provides as under:-
"[Deduction not to be allowed unless return furnished. 80AC. Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after--
(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80- IC or or;
(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.--Deductions in respect of certain incomes", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.]"
d) Thus, from 01.04.2018, the clause(i) of the above section has become inoperative and clause (ii) was introduced which provides that all the deductions falling under the heading 'C of Chapter VIA of the Act will be allowed only when ITR is furnished before the due date specified u/s 139(1) of the Act. This amendment became effective from AY. 2018-19.
e) In the present case the due date of filing ITR for AY. 2018-19 was 31.08.2018. However, the Appellant filed its return on 13.10.2018 i.e. after the due date for filing of ITR. Appellant had claimed deduction u/s 80P of Rs. 1,11,421/-. As discussed above Section 80P falls under the heading 'C of Chapter VIA of the Act. Therefore, from AY. 2018-19 and onwards, any assessee claiming deduction u/s 80P has to file its return within due date specified u/s 139(1) of the Act to avail such deduction as required u/s 80AC of the Act. In the present case, the Appellant did not file its return within the due date prescribed u/s 139(1) of the Act for AY. 2018-19, therefore, the AO ITA/332 to 338/CHD/2021 Page 12 of 16 rightly disallowed deduction u/s 80P of Rs. 1,11,421/- in intimation u/s 143(1). Thus, the action of AO in disallowing deduction u/s 80P is upheld. Grounds of Appeal Nos. 1 to 3 are dismissed."
1 4 .1 On c on si de r a tio n of th e a b ove wh e n re a d a l ongwi th t he a r gu me n ts a dv a nc e d be f ore the CI T( A ) on b e h a lf of th e a sse ssee w hi c h ha v e be e n r e -i te ra te d be fore th e I TA T, I f in d th a t on f a cts th e ca se of the a ss e ssee i s a l lo wa bl e . Th e AO /C P C B a nga l ore a t t he re le va n t time th oug h c ons id e ri n g the a mend e d Se cti on 8 0 AC wa s e xe r ci sin g t he p owe r s a s ve s te d by th e Se cti on 1 4 3( 1 ) of th e Ac t a s it th e n s tood . At th e re le v a nt p oi nt of ti me , t he p r ovi si on s of Se cti on 1 4 3 (1 ) o f the A ct w e re a s un de r :
143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:--
(a) the total income or loss shall be computed after making the following adjustments, namely: --
(i)any arithmetical error in the return; [***]
(ii) an incorrect claim, if such incorrect claim is apparent from any information in the return;
(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-
section (1) of section 139;
(iv)disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return;
(v)disallowance of deduction claimed under Sections 10AA, 80-1 A, 80-1 AB, 80- IB, 80- IC, 80-1D or section 80-1E if the return is furnished beyond the due date specified under sub-section (1) of section 139; or
(vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return:
Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode:
ITA/332 to 338/CHD/2021 Page 13 of 16 (emphasis supplied) 1 4 .2 I t i s a ma t te r of fa c t th a t su b -cl a us e ( v) of Se cti on 1 4 3( 1 ) (a ) was ame nd e d by the Fi n a nc e A ct , 20 2 1 w h e re in i ns te a d o f r e fe re nce to S ec tion s 1 0 AA, 8 0 - IA, 8 0 - IA B, 8 0 - IB, 8 0 - IC, 80 - ID o r Sec tio n 8 0 - IE , th e p ro vi si on i nste a d ma k e s a me n ti on of S ec tio n 10 A A or un d er an y of the prov i sio n s of Ch a p te r V I-A un d er th e h ead 'C -D e du c tion s in res p ec t of ce rta in in co me s" . A ccor d i ng ly, th e e na bl ing p ro vi si ons to a dd r e s s the a me n d me n t i n S e cti on 8 0 -AC b y Fi na n ce A ct, 2 01 8 ca me i nt o p la y on ly i n 2 0 20 -21 a s se ssme nt ye a r . Th us, n o d oub t Se cti on 8 0 AC a s a me nd e d b y t he F in a nce Act , 20 1 8 ma n d a te d t ha t e ve n f or cl a i mi ng d e d uc tio n cl a ime d u /s 8 0 P , th e re tur n of i n come w a s to b e f i le d b e f ore th e d ue da t e a s s pe ci fied un d e r su b-
se cti on ( 1 ) of Se cti on 1 3 9 . H oweve r , fo r the AO to i ns is t up on th e comp l ia n ce by wa y of ma k i ng a di sa l l ow a nc e , th e po we r w a s ve ste d i n t he sa i d A uth or it y on ly v id e F i na n ce A ct, 2 02 1 . H e n ce , i n the ab se nce of th e e na b l i ng pr ov is io ns , th e C PC B a n ga l or e l a cke d th e ju r is d ic tio n to ma k e th i s d is all ow a n ce i n th e or de r u /s 1 43 ( 1 ). Ac cor d i n gl y, on f a ct s, I fi n d t ha t t he a p p e a l of t he a s se s se e h a s to be all ow e d .
1 4 .3 B e f ore p a r ti ng, i t ma y a l so b e r e le va n t to re fer to t he d e c is ion of th e Ap e x C our t d a ted 3 0 .0 7 .2 0 1 8 i n th e ca s e of C o m m i s s i o n e r o f C u s t o ms ( I mp o r t ) V s M / s D i l i p K um a r & C o . & ITA/332 to 338/CHD/2021 Page 14 of 16 O r s. C i vi l Ap p e a l N o .3 3 27 of 2 00 7 r e l ie d u p on b y th e ld . S r. D R. On a r e a d i ng th e re f r om, it is s ee n t ha t th e i ss ue for co ns id e r a ti on be fo re the Hon 'b le C ou r t wa s w he t he r t he de ni al of b e ne fi t o f C u sto ms N oti f ic a ti on N o . 2 0 /1 99 9 w a s j u sti fi e d to th e p a r ty w ho p le a de d th a t the be ne fi t of con ce s sion a l r a te s for i mpo rt of a ni ma l f ee d s ho ul d a l s o b e a va i l a ble to i mpo rt wh i ch a d mi tte d l y co nta i n e d che mi ca l in gr e d ie n ts for a n imal f e e d . The co nc e ss ion a l r a te of d uty u nde r the e xte n t N otifi cat ion w a s b e i ng c ons ide re d. Th e or d e r o f d e n ia l by t he C ustoms O f fi ce r w a s r e ve r se d b y C om mi ss io ne r o f C u sto ms. Th i s or d e r w a s co nf ir me d b y C ust oms Exc is e & Se r vi ce Ta x Tr i b un a l ( C ES TA T) w hi c h l e d to the f il i ng of th e a pp e a l be f ore the Ho n'b l e H i gh C ou r t a n d the n the A pe x C our t. I t is i n th a t b a ck gr ou nd tha t th e H on 'b le C ou r t h e l d tha t e xe mpt ion n oti fi ca t i on s hou ld b e i nte r pre te d str i ct ly a n d t he b urd e n of p r ovi n g tha t t he c ase co me s w i th in th e p a r a me te r s of th e e xe mp tio n c la u se or e xe mp ti on n oti f ic a ti on w ou l d b e on the a sse s see . I n su ch ci r cu msta n ce s, i n c a se t he re is a mbi gu it y, th e N ot if i ca ti on mus t b e in te r p rete d i n f a vou r of the Re ve nue . I n th e fa c ts of th e p re se n t c a se , the re i s no a mb i gu i ty. I t i s a ca s e of a bs e nce of e na b l in g p r ovi si on . H e nc e , the r a ti o l a i d d ow n t he re in ha s n o a p p l ic a bi l it y to t he f a cts of t he p r e se nt c a se .
ITA/332 to 338/CHD/2021 Page 15 of 16 14.4 I t is a l so ne ce s sa r y to re fe r to t he de ci si on of the H on 'ble Ma d r a s H i gh C o ur t i n th e ca se of V e e r a p pa m p al a y a m P r i m a r y A g r i c u l t u r al C o op e r a t i v e Credit Society L t d. Vs D C IT ( ci te d su p r a ). A pe r usa l of the sa me s ho ws th a t the i s sue f or co ns id e r a ti on be fo re the Ho n'bl e H ig h C ou r t in th e W r it Jur i sd i cti on i n v ok e d b y the a sse ssee w a s ve r y f a ct sp e c if i c. Th e a s se s see the re i n w a s c a nv ass in g t ha t u/s 1 43 ( 1 )( a ) f or co ns id e r i ng de n ia l o n the gr ou nd s of "i nc or re ct cl ai ms" t he sc op e w a s l imi te d t o "e n tr y" in th e re tur n of i nc ome . The C ou rt th e re i n di d n ot p e r mi t su ch a r e str i ct iv e i nte r pre ta ti on co mme nt in g va r i ous ly o n th e cond uc t o f th e a ssess ee . He nce , th e de ci si on is di st in gu is ha b l e . F ur th e r , be f ore th e H on' ble H ig h C o ur t, the a me n d me nt ca r r ie d out i n Se cti on 14 3 ( 1 )( a ) by th e F i na n ce Act 2 02 1 w a s n e i th e r a r gue d no r re fe rre d to f or co ns id e r a ti on of the H on 'b le C o urt.
1 4 .5 I t i s f ur the r see n th a t the de ci sion of the A pe x C ou rt i n th e ca se of C IT V s B .C . S r i n i v as a S h e t t y 1 2 8 IT R 2 9 4 fu l ly su p po rt s t he view ta k e n . The Cou r t th e re in a t p a ge 29 9 h as h e l d a s un de r :
" ..............The character of the computation provisions in each case bears a relationship to the nature of the charge. Thus, the chagrining section and the computation provisions together constitute an integrated code . When there is a case to which the computation provisions cannot apply at all, it is evident that such a case was not intended to fall within the charging section. Otherwise one would be driven to conclude that while a certain income seems to fall within the charging section there is no scheme of computation for quantify it.................
ITA/332 to 338/CHD/2021 Page 16 of 16 (emphasis supplied) 1 4 .6 I n the f a cts of th e p re se n t c a se , a d mi tte dl y the pr ovi si on e n a b li n g the AO t o p a ss a n or d e r re ly in g up on su b-cl a us e ( 5 ) of S e ct ion 14 3 ( 1) (a ) was n ot on th e St a tute f or 2 01 8 -1 9 a ss e s sme n t ye ar . Acc or d in gl y , for t he d e tai le d re aso ns h e re i na b ove , se tti ng a si de the imp ugn e d or d e r , th e a p pe a l of th e a sse ssee i s all ow e d .
15. Si nc e i n the re ma i ni n g a p p e a l s, the fa cts, ci rc ums ta nc e s a n d pos i tio n of l a w con ti nu e s t o r e ma i n t he sa me, acc or d in gl y, mut a ti s- mut a nd i s t he d e c is ion a rr i ve d a t in I TA 3 3 2 /C H D /2 0 2 1 w oul d a p p l y. A cc or di n gl y, a l l a pp e a ls of th e ass e ssee s a r e a l lo we d .
16. I n the re su lt , the a pp e a ls of t he as se s see s a re a ll ow e d .
O r d e r p r o n o un c e d i n t he O pe n C o u r t o n 3 0 t h Au g u s t , 2 0 2 2 .
Sd/-
( दवा संह ) (DIVA SINGH) या#यक सद य/Judicial Member "पन ू म"
आदे श क! त,ल-प अ.े-षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant - 2. यथ / The Respondent 3.आयकर आयु/त/ CIT 4.आयकर आयु/त (अपील)/ The CIT(A) 5.-वभागीय त न2ध, आयकर अपील&य आ2धकरण, च4डीगढ़/ DR, ITAT, CHANDIGARH 6.गाड फाईल/ Guard File
2.
आदे शानुसार/ By order, सहायक पंजीकार/ Assistant Registrar