ITAT deletes Adjustment on Section 80P Deduction as Taxpayer Filed ITR within Due Date u/s 139(1)

The Income Tax Appellate Tribunal (ITAT) recently deleted an adjustment regarding a Section 80P deduction, emphasizing that the taxpayer had filed their Income Tax Return (ITR) within the due date under Section 139(1) of the Income Tax Act. The case involved the taxpayer, a cooperative society, which claimed a deduction under Section 80P(2)(a)(i). The Assessing Officer had disallowed this claim, arguing the return was filed late. However, ITAT observed that the return was filed within the extended due date as per COVID-19 relief measures. Consequently, ITAT directed the Assessing Officer to allow the Section 80P deduction, emphasizing the importance of adherence to stipulated timelines and the consideration of extraordinary circumstances like the pandemic.