THE CHENNAI CORPORATION OFFICIALS CO-OPERATIVE SOCIETY LIMITED,CHENNAI vs. ADIT,CPC, BENGALURU

The assessment was completed by the National Faceless Appeal Centre (NFAC), Delhi for relevant assessment year 2018-19 u/s. 143(3) r.w.s 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 17.02.2021.

At the outset, learned counsel for the assessee stated that the CIT(A) has simply dismissed appeal of the assessee without considering issues on merits and giving reason that return of income filed by the assessee is belated return. The learned counsel for the assessee stated that the assessee has filed petition u/s.119(2)(b) of the Act, before the Commissioner of Income Tax-8, Chennai for condonation of delay in filing of appeal. The learned counsel for the assessee particularly took us through relevant ground no.4, which reads as under:- “Ld.CIT(A) erred in denying the deduction claimed u/s.80P in spite of the fact of condonation petition was brought to his notice with a specific request to wait till the disposal by CIT(A).”

The learned counsel for the assessee stated that though petition for condonation of delay in filing of appeal is to be filed u/s.119(2)(b) of the Act is to be addressed to Central Board of Direct Taxes (CBDT) and not to CIT, but, in any case, the CIT can refer the matter or petition to CBDT, qua, this Bench can give direction. To this proposition, the Ld. Senior DR also supported that petition can be sent to CBDT by the Commissioner of Income Tax.

After hearing both the sides and going through facts of the case, we noted that the assesseeis a co-operative society claiming deduction u/s.80P(2)(a)(i), 80P(2)(d) & 80P(2)(c) of the Act. The Assessing Officer disallowed claim of deduction and added to returned income an amount of Rs.5,17,66,960/- for the reason that return filed by the assessee is belated return and for this, he observed in para 6 of his order as under:-

The CIT(A) also confirmed action of the Assessing Officer by stating that there is statutory and mandatory requirement of filing of return of income before due date as prescribed u/s.139(1) of the Act for the purpose of claiming any deduction u/s.80P of the Act. Since, the assessee had not fulfilled criteria laid down u/s.80AC of the Act, the Assessing Officer has rightly disallowed claim of deduction and the CIT(A) accordingly, dismissed appeal of the assessee. Aggrieved, now the assessee is in appeal before the Tribunal.

The assessee now before us filed a copy of condonation of delay petition filed before Commissioner of Income Tax-8, Chennai dated 01.01.2021. The facts are that for the relevant assessment year 2018-19, the assessee filed return of income on 30.03.2019, whereas due date for filing of return u/s.139(1) was 31.10.2018. Admittedly, return of income was not filed by the assessee within due date as prescribed under the provisions of section 139(1) of the Act. The assessee moved petition before the Commissioner of Income Tax-8, Chennai for condonation of delay u/s.119(2)(b) of the Act, for condoning delay in filing of return of income. Now, as argued by the Ld.Sr. DR that condonation petition has to be filed before the CBDT and not before CIT. We think, let this condonation of delay petition be treated as condonation petition filed and the CIT-8, Chennai is directed to refer this petition to CBDT, who will consider the same as per law. The matter is being restored back to the file of the Assessing Officer, who will also pursue with CBDT and the assessee will also pursue for early disposal of condonation petition before the CBDT.

In term of above, the matter is restored back to the file of the Assessing Officer. In case, the CBDT condones delay, the Assessing Officer shall reconsider the issues on merits, after allowing reasonable opportunity of being heard to the assessee.

In the result, appeal of the assessee is allowed for statistical purposes.