ITAT Rajkot restricts Central Processing Centre from denying Section 80P via belated return adjustments

The Income Tax Appellate Tribunal Rajkot bench determined that the Central Processing Centre lacked the authority to disallow deductions claimed under Section 80P through automated adjustments on a belated return for assessment year 2019-20. Automated processing systems are designed for arithmetic corrections and prima facie adjustments rather than debatable disallowances of substantive tax deductions.

Statutory limits restrict automated CPC processing from altering complex tax claims without proper scrutiny. Tax consultants must verify intimation notices issued under Section 143(1) and challenge unauthorized automated disallowances before appropriate appellate forums.

Bottom line: Protect client tax deductions by contesting improper processing adjustments within statutory timelines.