VADASERY CO OP CREDIT SOCIETY LTD NO Y 4,VADASERY vs. INCOME TAX OFFICER, NAGERCOIL

आयकर अपीलीय अिधकरण, ’सी’ �ायपीठ, चे�ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI �ी इंटूरी रामाराव, लेखा सद� एवं �ी एस.एस. िव"ने$ रिव, �ाियक सद� के सम% । BEFORE SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER AND BEFORE SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 3067/Chny/2026 िनधा'रण वष'/Assessment Year: 2021-22 Vadasery Co-operative Credit Society Vs. Income Tax Officer, Ltd., 379, Kottar- Parvathipuram Road, 80A, Pioneer, Pilaiyar Covil Street, Ramavarmapuram, Vadasery S.O., Vadasery, Nagercoil, Kanyakumari – 629 001. Kanyakumari, Tamil Nadu – 629 001. [PAN: AACAV-5335-N] (अपीलाथ*/Appellant) (+,थ*/Respondent) अपीलाथ* की ओर से / Appellant by : Mr. Bharath, Advocate +,थ* की ओर से/Respondent by : Ms. Premi, Sr. AR सुनवाई की तारीख/ Date of hearing : 23.07.2026 घोषणा की तारीख /Date of Pronouncement 28.07.2026 : आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

This appeal filed by the assessee is directed against the order dated 09.06.2025 passed by the ld. Commissioner of Income Tax (Appeals), Addl/JCIT(A)-3, Bengaluru, for the assessment year 2021-22.

2 ITA No. 3067/Chny/2026

delay. On perusal of the same and upon hearing both the parties, we find

the reasons stated by the assessee are bonafide which really prevented

the assessee in filing the appeal in time. Thus, delay of 265 days

condoned.

society engaged in providing credit facilities to its members. According to

the AO, the assessee filed its return of income u/s. 139(8A) of the Act on

15.07.2023 claiming deduction of Rs.27,77,014/- u/s. 80P of the Act.

Accordingly, the AO issued an intimation u/s. 143(1) dated 19.12.2024

disallowing the 80P deduction claimed. Being aggrieved by the order of

the AO, the assessee preferred an appeal before the ld. CIT(A), contending

that the assessee is controlled by the authorities appointed under the Act

by the Government of Tamil Nadu and the Registrar shall cause the

accounts to be audited by a person authorized by him by general or special

order. The said provision under Section 80 of the Tamil Nadu Cooperative

Societies Act provides the manner of audit, the examination of various

books of accounts of the societies, etc., and the submission of a report for

appropriate action to rectify the defects. Further, it was contended that all

the adjustment entries are made by the cooperative auditors only, and they

will arrive at the actual profit or loss of the society. It was further contended,

3 ITA No. 3067/Chny/2026

and we find, that it is a government body and the cooperative societies are

entitled to get deduction under Section 80P of the Act on the entire income of the society and, on a bona fide belief, it was presumed that it was not

mandatory for the society to file the income-tax return. The ld. CIT(A), after

considering the submissions of the assessee, confirmed the order of the

AO by recording his reasons from para Nos. 5.1 to 5.1.13 of the impugned order. Being aggrieved by the order of the ld. CIT(A), the assessee is before

us.

confirm the order of the AO in denying the deduction under Section 80P of the Act, relied on the decision of the Hon’ble Madras High Court in AA520

Veerappampalayam Primary Agricultural Cooperative Credit Society

Ltd. v. DCIT [2022] 138 taxmann.com 571 (Mad.), wherein it was held

that no deduction is admissible if no return of income was filed within the prescribed due date under Section 139(1) of the Act. On a perusal of the

reasons recorded by the ld. CIT(A), we note that it was held that no return

of income has been filed by the assessee under Section 139 of the Act and

4 ITA No. 3067/Chny/2026

the assessee is not entitled to get deduction under Section 80P of the Act. There is no dispute with reference to the non-filing of the return of income under Section 139(1) of the Act, and the assessee filed the updated return of income dated 15.07.2023. Having these facts on hand, we find no infirmity in the order of the ld. CIT(A) in confirming the order of the AO in denying the deduction under Section 80P of the Act for not filing the return of income within the specified due date under Section 139(1) of the Act. Thus, the order of the ld. CIT(A) is justified, and the grounds raised by the assessee are dismissed.

Sd/- Sd/- (INTURI RAMA RAO) (S.S. VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Chennai, Dated: 28.07.2026 JPV आदेश की +ितिलिप अ3ेिषत/Copy to: 1. अपीलाथ*/Appellant, 2.+,थ*/ Respondent, 3. आयकर आयु4/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय +ितिनिध/DR & 5. गाड' फाईल/GF.

PRASANNA Digitally signed by PRASANNA VANI JETTY VANI JETTY Date: 2026.07.30 10:38:29 +05'30'