THE JUNIOR ENGINEERS (TELECOM) COOPERATIVES CREDIT SOCIETY LTD.,KOLKATA vs. I.T.O., WARD - 11(1), KOLKATA, KOLKATA

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ITA 662/KOL/2022Status: DisposedITAT Kolkata06 February 2023AY 2018-20194 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had a genuine cause for the delay, which was beyond its control, and therefore, should not be penalized. The Assessing Officer was directed to grant the deduction under Section 80P.

What were the facts?

The assessee, a cooperative society, filed its return of income belatedly due to a delay by the Government Auditor in completing the audit. The lower authorities denied the deduction under Section 80P on the grounds of late filing.

What were the issues?

Whether the denial of deduction under Section 80P for late filing of return, when the delay was due to circumstances beyond the assessee's control, is justified.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC,Section 139

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: Shri Sanjay Garg & Dr. Manish Borad

order : February 06, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 20.09.2022 of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee in this appeal has taken the following grounds of appeal: “1. For that Hon’ble CIT(A) erred in law as well as on facts in confirming the disallowance of the benefit of deduction u/s 80P for alleged late filing of return for no fault on the part of the assessee, which is not sustainable in the eye of law and needs to be deleted. Assessment year: 2018-19 The Junior Engineers (Telecom) Cooperatives Credit Society Ltd

2. The assessee craves leave for addition, deletion, alteration or modification any of the grounds before or at the time of hearing.”

3. The sole issue involved, in this issue, is relating to the denial of deduction u/s 80P of the Act to the assessee cooperative-society on the ground of delay in filing return of income.

4. At the outset, the ld. counsel for the assessee has submitted that the return was filed within the extended prescribed period as per provision of section 139(4) of the Act. However, the lower authorities have denied the deduction u/s 80P of the Act on the ground that as per section 80AC of the Act, the condition stipulated is that an assessee should have furnished his return of income on or before the due date as specified under sub-section (1) to section 139. The ld. counsel, in this respect, has submitted that the above condition of filing of the return on or before the specified date under sub-section (1) to section 139 has been introduced for the first time i.e. from 1st April 2018 relevant to assessment year under consideration. It has been further submitted that the assessee cooperative-society under the laws is required to get its accounts audited from a Government auditor. That the Government Auditor, despite of repeated reminders, made inordinate delay in completing the audit under the Cooperative Societies Act, which finally concluded on 17.12.2018 and was handed over to cooperative-society in a few days thereafter. The assessee cooperative-society immediately filed the return of income on 31.12.2018. That the delay, if any, occurred in non-filing of the return within the stipulated period as provided u/s 139(1) of the Act was due to circumstances which was beyond the control of the assessee cooperative-society. That the delay, if any, have occurred on the part of Government Auditor in completing the audit who was not under control of the assessee-society.

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