R1014 GUDALUR PRIMARY AGRI COOP CREDIT SOCIETY LIMITED,GUDALUR RAKKAMPATTY POST ,KULITHALAI KARUR 639120 vs. INCOME TAX OFFICER, KARUR

आयकर अपीलीय अधिकरण, ‘बी’ न्यायपीठ, चेन्नई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI श्री एबी टी वर्की, न्याययर्क सदस्य एवं श्री एस. आर. रघुनाथा, लेखा सदस्य के समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1519/Chny/2026 ननिाारण वर्ा / Assessment Year: 2021-22 R-1014 Gudalur Primary Agri Co- The Income Tax Officer, operative Credit Society Ltd. vs. Karur. Gudalur Rakkampatty Post Kulithalai, Karur – 639 120. [PAN: AABAR-3822-P] (प्रत्यथी/Respondent) (अपीलाथी/Appellant)

अपीलाथी की ओर से/Appellant by : Shri. G.Reddi Prakash, C.A प्रत्यथी की ओर से/Respondent by : Ms. Gouthami Manivasagam, Addl.CIT सुनवाई की तारीख/Date of Hearing : 12.05.2026 घोर्णा की तारीख/Date of Pronouncement : 08. 06.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM :

The present appeal is filed by the assessee against the order dated 21.01.2026 passed by the learned Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Gurugram (hereinafter referred to as “ld.CIT(A)”), dismissing the appeal filed by the assessee against the intimation order dated 13.12.2024 passed by the CPC u/s.143(1) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), pertaining to Assessment Year (A.Y.) 2021-22. 2. The sole ground raised by the assessee is that the AO has denied the deduction u/s.80P of the Act for the reason that the assessee has filed its return

:-2-: ITA. No:1519/Chny/2026. of income after the due date prescribed u/s.139(1) of the Act for the A.Y. 2021- 22. 3. Brief facts of the case emanating from the records are that the assessee is a Primary Agricultural Co-operative Credit society, filed its return of income on 01.11.2023 admitting an income of Rs.NIL after claiming deduction of Rs.46,94,365/- u/s.80P of the Act for the A.Y.2021-22. Thereafter, an intimation order dated 13.12.2024 was passed by the Central Processing Centre (hereafter referred to as “CPC”) wherein the sum claimed for deduction u/s.80P of the Act was disallowed on the ground that the return was filed after the due date as specified u/s.139(1) of the Act and a demand of Rs.37,39,260/- was raised against the assessee. 4. Aggrieved by the order of the CPC, the assessee filed an appeal before the ld.CIT(A) vide Form 35 dated 10.06.2025. During the proceedings before the ld.CIT(A), the assessee submitted that it is a Primary Agricultural Co- operative Credit Society and the society does not have qualified accountant to comply with accounting and Taxation Laws & Procedures. The Assistant Director, Dept. of Cooperative Audit, Government of Tamilnadu, audits the financial statements prepared by the society staff and audit report based on the verification of books maintained by the Society. Due to lack of sufficient number of Cooperative auditors in the Cooperative Audit Department during the previous years there was a delay in completion and issuance of reports to the society and also due to Corona Pandemic-19, delay in completion of audit and lack of manpower were unable to file the return of income of the society for the respective year. However, upon receiving intimations from the Income Tax Department, the assessee promptly approached an auditor and filed the Return of Income u/s.139(8A) of the Act. Therefore, the assessee filed an application u/s.119(2)(b) of the Act before the ld.PCIT to condone the delay in filing the return of income and allow the deduction u/s.80P of the Act and the ld.CCIT, Madurai is condoned the delay by passing an order u/s.119(2)(b) of the Act dated 16.03.2026.

:-3-: ITA. No:1519/Chny/2026. 5. The ld.CIT(A), however observed in the order passed u/s.250 of the Act, that the last date for filing return u/s.139(1) of the Act was 15.03.2022. But the assessee has filed the return after the due date i.e., on 01.11.2023. Since the deduction u/s.80P can be claimed only if it is filed within the due date as per Section 80AC of the Act, the ld.CIT(A) confirmed that the disallowance of the AO with respect to the deduction u/s.80P of the Act is correct. Further, the ld.CIT(A) stated that the application for condonation of delay in filing of return of income is a separate proceeding and based on the subsequent decision on such application, necessary action would be taken by the JAO. Thereafter, the ld.CIT(A) rejected the appeal of the assessee by way of an order dated 21.01.2026. 6. Aggrieved by the order of the ld.CIT(A), the assessee has preferred the present appeal before us.

:-4-: ITA. No:1519/Chny/2026. of the Act and declaring ‘Nil’ income. It is observed that the CPC, while processing the return, disallowed the claim of deduction u/s.80P of the Act on the ground that the return of income had not been filed within the time stipulated u/s.139(1) of the Act, thereby attracting the provisions of section 80AC of the Act. Aggrieved by such disallowance, the assessee preferred an appeal before the ld.CIT(A), who dismissed the appeal for the reasons discussed in the impugned appellate order. Challenging the said findings, the assessee is now in further appeal before this Tribunal. 10. During the course of hearing before us, the ld.AR placed on record a copy of the order passed u/s.119(2)(b) of the Act by the ld.CCIT, Madurai, dated 16.03.2026, whereby the delay in filing the return of income for the Assessment Year 2021-22 has been condoned. In view of the subsequent condonation granted by the competent authority u/s.119(2)(b) of the Act, the very basis on which the deduction claimed u/s.80P of the Act came to be denied no longer survives. Accordingly, in the interest of justice, we deem it fit to restore the matter to the file of the Jurisdictional Assessing Officer (JAO) with a direction to examine the assessee’s claim of deduction u/s.80P of the Act as made in the return of income filed on 01.11.2023 and thereafter allow the same, if found eligible, in accordance with law after due verification.

:-5-: ITA. No:1519/Chny/2026. आदेश की प्रतिलिपि अग्रेपिि/Copy to: 1. अपीलाथी/Appellant 2. प्रत्यथी/Respondent 3.आयकर आयुक्त/CIT– Chennai/Coimbatore/Madurai/Salem 4. ववभागीय प्रनतननधि/DR 5. गार्ा फाईल/GF

DEVADAS Digitally signed by DEVADAS GOPALANACHARY GOPALANACHARY Date: 2026.06.10 15:05:57 +05'30'