SHRI SAIN SAMAJ CO-OPERATIVE THRIFT AND CREDIT SOCIETY LIMITED,DELHI vs. INCOME TAX OFFICER, DELHI

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ITA 1597/DEL/2025Status: DisposedITAT Delhi19 August 2025AY 2019-20Bench: MS. MADHUMITA ROY, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that claiming deduction under the wrong column is a technical default and not a reason to deny the legitimate claim. The matter was remitted to the Assessing Officer for verification and allowing the claim.

What were the facts?

The assessee cooperative society filed its return claiming deduction u/s 80P. The AO/CPC denied the deduction as it was claimed in the wrong column of the schedule. The CIT(A) upheld the denial.

What were the issues?

Whether a technical default in claiming deduction u/s 80P in the wrong column of the return can lead to denial of the legitimate claim.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(1),Section 154,Section 80P(2)(a)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI ‘G’ BENCH,

Before: MS. MADHUMITA ROY, & SHRI NAVEEN CHANDRA

For Appellant: Shri Mohit Chaudhary, CA
For Respondent: Shri Manish Gupta, Sr. DR
Hearing: 14.08.2025Pronounced: 19.08.2025

This appeal by the assessee is preferred against the order of ld.

CIT(A), New Delhi dated 18.01.2025 for A.Y 2019-20.

Page 1 of 5 CIT(A) erred in disallowing the claim of deduction u/s 80P to the assessee.

3.

Briefly stated, the facts of the case are that the assessee, Shri Sain Samaj Cooperative Thrift & Credit Society Limited filed its Return of Income on 31.10.2019. The assessee received intimation u/s 143(1) of the Income Tax Act, 1961 on 29.03.2021 where the claim of the assessee of deduction of Rs. 69,12,760/- u/s 80P(2)(a)(i) from banking business or for income from providing credit facilities to its members, was denied. The assessee filed Rectification Request under section 154 of the Act, 1961 to give effect of deduction u/s 80P(2)(a)(i) of the Act amounting to Rs. 69,12,760/-, which was rejected on the ground that there is no mistake apparent on record vide order dated 11.05.2021.

4.

On appeal before the CIT(A), the CIT(A) declined to interfere with the intimation passed by AO(CPC) u/s 143(1) of the I.T. Act and held that the appellant is not eligible for claim of deduction u/s 80P(2)(a)(i) of the I.T. Act in the absence of any such claim made by the appellant in the return of income filed. Aggrieved the assessee is before us.

Page 2 of 5 u/s 80P was made in the return of income under wrong column col.5d of schedule BP. In view of the same, neither the AO/CPC nor the CIT(A) considered the deduction.

6.

We have heard the rival submissions and have perused the materials on record. We find that the CIT(A) has given a finding that vide schedule BP, giving computation of income from business or profession, the assessee has shown profit before tax as per P&L A/c of Rs.69,12,760/- and in col. 5b under schedule BP appellant has shown share of income from AOP/BOI of Rs.69,12,760/- and the same has been claimed exempt in col.5d of schedule BP. We find that since the assessee claimed the deduction under wrong column in the return of income filed, its claim of deduction u/s 80P(2)(a)(i) of the I.T. Act has been denied.

7.

We further find that in Tax Audit for the relevant F.Y., at Point No. 33 on Page No. 20 of TAR, the tax auditor has stated that the eligible deduction was to be provided u/s 80P(2)(a) (i) of the Act. Tax Audit Report has been furnished on record. All the above relevant facts and data with respect to the deduction under section 80P were already there before the assessing authorities. Therefore, if the legitimate relief

Page 3 of 5 Return for the year under consideration, it can at most be termed as a technical default and cannot be the reason for denying the legitimate claim of the assessee. In that view of the matter, we remit the matter to the file of the Assessing Officer for taking necessary action on this count and allow the claim of assessee after verification. is allowed for statistical purposes.

The order is pronounced in the open court on 19.08.2025.

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