SURYAKIRAN CO-OPERATIVE HOUSING SERVICE SOCIETY LTD.,AHMEDABAD vs. THE ITO, WARD-3(3)(5), AHMEDABAD

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ITA 2448/AHD/2025Status: DisposedITAT Ahmedabad22 July 2026AY 2024-255 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal accepted the assessee's plea that the option under Section 115BAD was filed by mistake. The Assessing Officer was directed to recompute the taxable income under the old regime as if the option had not been exercised, provided it was not opted for in previous years.

What were the facts?

The assessee, a co-operative society, claimed a deduction under Section 80P. While processing the return, the deduction was disallowed as the assessee had opted for the new tax regime under Section 115BAD. The assessee contended that the option under Section 115BAD was exercised inadvertently.

What were the issues?

Whether a co-operative society that inadvertently opts for the Section 115BAD regime can be allowed to revert to the old regime and claim Section 80P deduction.

Which sections of the Income-tax Act were involved?

Section 80P,Section 115BAD,Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

For Appellant: Shri Pritesh L Shah, AR
For Respondent: Shri Deependra Kumar, Sr. DR
Hearing: 16.07.2026Pronounced: 22.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT ITA No. 2448/AHD/2025 (Assessment Year: 2024-25) Suryakiran Co-operative The Income Tax Officer, Vs. Housing Service Society Ltd., Ward 3(3)5, 16, Suryakiran Bungalows, Ahmedabad. SP Ring Road, Near Dastan Farm, Nikol, Ahmedabad-382350. [PAN :AARAS0774 K] (Appellant) .. (Respondent) Appellant represented by : Shri Pritesh L Shah, AR Respondent represented by: Shri Deependra Kumar, Sr. DR Date of Hearing 16.07.2026 Date of Pronouncement 22.07.2026

O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-

This appeal has been filed by the Assessee against the order dated 29.10.2025 passed by the Addl./JCIT(A)-11, Delhi (hereinafter referred to as ‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’ in short) for Assessment Year 2024-25.

2.

The Assessee has raised the following grounds of Appeal:-

1.

The Learned Commissioner of Income Tax (Appeals) erred in law and on facts in confirming the section 80P deduction disallowance of Rs.5,59,600/- such deduction is requested to be allowed.

ITA No. 2448/AHD/2025, AY-2024-25 Suryakiran Co-op. Housing Service Ltd. - 2– 3. The facts of the case are that the assessee, a co-operative society, filed its return of income for the Assessment Year 2024-25 on 03.07.2024 declaring Nil income after claiming deduction of Rs.5,59,660/- under section 80P of the Income-tax Act, 1961. While processing the return under section 143(1) of the Act, the Central Processing Centre (CPC), Bengaluru, disallowed the deduction claimed under section 80P and assessed the total income at Rs.5,59,660/- Aggrieved by the intimation issued under section 143(1) of the Act, the assessee preferred an appeal before the learned CIT(A). During the appellate proceedings, it was noticed that the assessee had exercised the option under section 115BAD by filing Form No. 10-IF. The Ld.CIT(A) observed that once the option under section 115BAD is exercised, the assessee becomes ineligible to claim deduction under section 80P and such option cannot be withdrawn. The contention of the assessee that Form No. 10-IF had been filed inadvertently was also rejected. Accordingly, the Ld.CIT(A) confirmed the action of the CPC in disallowing the deduction under section 80P.

4.

Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. The provisions reads as under:

Tax on income of certain resident co-operative societies. Finance Act, 2020, w.e.f. 1-4-2021 : 115BAD. (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall, at the option of such person, be computed at the rate of twenty-two per cent, if the conditions contained in sub-section (2) are satisfied:

ITA No. 2448/AHD/2025, AY-2024-25 Suryakiran Co-op. Housing Service Ltd. - 3– Provided that where the person fails to satisfy the conditions contained in sub-section (2) in computing its income in any previous year, the option shall become invalid in respect of the assessment year relevant to that previous year and subsequent assessment years and other provisions of the Act shall apply, as if the option had not been exercised for the assessment year relevant to that previous year and subsequent assessment years. (2) For the purposes of sub-section (1), the total income of the co-operative society shall be computed,— (i) without any deduction under the provisions of section 10AA or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or under any of the provisions of Chapter VI-A other than the provisions of section 80JJAA; (ii) without set off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); and (iii) by claiming the depreciation, if any, under section 32, other than clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed. (3) The loss and depreciation referred to in clause (ii) of sub-section (2) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year: Provided that where there is a depreciation allowance in respect of a block of asset which has not been given full effect to prior to the assessment year beginning on the 1st day of April, 2021, corresponding adjustment shall be made to the written down value of such block of assets as on the 1st day of April, 2020 in such manner as may be prescribed, if the option under sub- section (5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2021. (4) In case of a person, having a Unit in the International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, which has exercised option under sub-section (5), the conditions contained in sub- section (2) shall be modified to the extent that the deduction under the said section shall be available to such Unit subject to fulfilment of the conditions contained in that section.

ITA No. 2448/AHD/2025, AY-2024-25 Suryakiran Co-op. Housing Service Ltd. - 4– Explanation.—For the purposes of this sub-section, the term "Unit" shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005). (5) Nothing contained in this section shall apply unless option is exercised by the person in such manner as may be prescribed on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2021 and such option once exercised shall apply to subsequent assessment years: Provided that once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year.

5.

I have gone through the material available on record. It is an undisputed fact that the assessee exercised the option under section 115BAD by filing Form No. 10-IF. The plea of the assessee that Form No. 10-IF was filed by mistake can be accepted. The Assessing Officer shall determine the tax as if Form No. 10-IF has not been filed and recompute the taxable income under the old regime provided the assessee has not opted for the new regime in any previous year.

6.

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

The order pronounced in the open Court on 22.07.2026 Sd/- Sd/- Sd/- (DR. B.R.R. KUMAR) VICE-PRESIDENT (True Copy) Ahmedabad; Dated 22.07.2026

ITA No. 2448/AHD/2025, AY-2024-25 Suryakiran Co-op. Housing Service Ltd. - 5– आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��थ�/ The Respondent. 3. संबंिधतआयकरआयु�/ Concerned CIT 4. आयकरआयु�(अपील) /The CIT(A)- 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड�फाईल /Guard file. आदेशानुसार/ BY ORDER, True Copy

सहायकपंजीकार (Dy./Asstt. Registrar) आयकरअपीलीयअिधकरण, अहमदाबाद / ITAT, Ahmedabad

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