PRIMARY AGRICULTURAL COPERATIVE CREDIT SOCIETY,NIZAMABAD vs. ITO., WARD-1, NIZAMABAD

Succinctly stated, the assessee which is a Primary Agricultural Cooperative Credit Society (PACCS), and is engaged in providing finance to Members who are farmers and facilitating sale of seeds and tools, had filed its return of income for AY 2022-23 on 31/12/2022, declaring an income of Rs. NIL after claiming deduction under section 80P of the Act of Rs.53,82,057/-. However, the AO/CPC, Bengaluru vide its intimation issued under section 143(1) of the Act, dated 03/04/2023 declined the assessee society’s claim for deduction under section 80P of the Act for the reason that the assessee society had filed its return of income for the subject year on 30/12/2022, i.e., beyond the extended due date of 07/11/2022.

The assessee society, aggrieved with the order of the Addl/Jt. CIT(A), has carried the matter in appeal before us.

Shri M V Anil Kumar, Advocate, Learned Authorized Representative (for short, “Ld. AR”) for the assessee society, at the threshold of hearing of the appeal submitted that the assessee society had filed an application for condonation of delay under section 119(2)(b) of the Act, with the Ld. Chief Commissioner of Income Tax, Hyderabad seeking condonation of the delay in filing of the return of income of income under section 139(1) of the Act, as a result whereof its claim for deduction under section 80P of the Act had been declined by the AO/CPC. Elaborating further on his contention, the Ld. AR submitted that the Ld. Chief Commissioner of Income Tax, Hyderabad vide his order dated 29/07/2026 has accepted the application filed by the assessee society and condoned the delay in filing the return of income to claim deduction under section 80P of the Act for the subject year. The Ld. AR to buttress his contention has taken us through the order passed by the Ld. Chief Commissioner of Income Tax, Hyderabad, dated 29/07/2026. The Ld. AR submitted that now when the Ld. Chief Commissioner of Income Tax has condoned the delay in filing of the return of income for the year under consideration to claim deduction under section 80P of the Act,

Per contra, Shri Mohan Babu, Learned Senior Departmental Representative (for short, “Ld. Sr-DR”) did not object to the aforesaid request of the assessee’s counsel.

We have given thoughtful consideration and in the backdrop of the order passed by the Ld. Chief Commissioner of Income Tax, Hyderabad, dated 29/07/2026, DIN & Order No. ITBA/COM/F/17/2026-27/1091569706(1) passed under section 119(2)(b) of the Act, as per which the delay involved in filing the return of income by the assessee society has been condoned to claim the deduction under section 80P of the Act, direct the AO to consider the said order and grant deduction under section 80P of the Act to the assessee society after carrying out necessary verification as per the extant law.

We thus, set aside the matter to the file of the AO to give effect to our aforesaid direction of the Ld. Chief Commissioner of Income Tax, Hyderabad and re-decide the assessee society’s claim for deduction under section 80P of the Act.

In the result, appeal filed by the assessee society is allowed for statistical purposes in terms of our aforesaid observations.