K1444 METTUPALAYAM CO-OP. BUILDING SOCIETY LIMITED,COIMBATORE vs. DCIT CPC, BEGNALURU

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi, dated 26.12.2022 relevant to the assessment year 2018-19.

Brief facts of the case are that the assessee filed the return of income for the assessment year 2018-19 on 23.03.2019 declaring total income at ₹.6,64,021/- after claiming deduction under section 80P of 2 the Income Tax Act, 1961 [“Act” in short]. While processing the return of income under section 143(1) of the Act dated 04.07.2019, the CPC disallowed the claim of deduction under section 80P of the Act on the ground that the society did not file the return of income before the due date under section 139(1) of the Act. Against the intimation under section 143(1) of the Act, the assessee filed a petition under section 154 of the Act requesting the Assessing Officer to wait for the outcome of the condonation petition filed before the CBDT under section 119(2)(b) of the Act. Since the outcome of the condonation petition filed before the CBDT was not brought on record, the Assessing Officer, CPC rejected the rectification petition filed by the assessee.

The assessee carried the matter in appeal before the ld. CIT(A) and submitted that the assessee has filed condonation petition under section 119(2)(b) of the Act before the CBDT requesting for condonation of delay in filing the return of income and the same is pending. Therefore, the assessee has requested the ld. CIT(A) to keep the appeal pending till the disposal of condonation petition by the CBDT. After considering the submissions of the assessee, and since the assessee could not file the approval of the CBDT towards condonation of delay in filing the appeal, the ld. CIT(A) decided the 3 appeal on merits by dismissing the appeal of the assessee as the assessee did not file the return of income within the due date of filing under section 139(1) of the Act.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the ld. CIT(A) has erroneously dismissed the appeal despite the assessee has filed an application for condonation of delay before the CBDT on 09.10.2019.

On the other hand, the ld. DR strongly supported the orders of authorities below.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The case of the assessee is that despite having time to process the return of income under section 143(1) of the Act, the CPC, Bengaluru hurriedly processed the same on 04.07.2019 by denying the claim of deduction under section 80P of the Act without waiting for the outcome of the condonation petition filed before the CBDT. By filing copy of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, the ld. Counsel for the assessee prayed for 4 suitable directions.

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