RIAGANJ CO OPERATIVE AGRIL & RURAL DEVELOPMENT BANK LTD,RAIGANJ vs. DCIT CIRCLE 1(2), JALPAIGURI

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ITA 3011/KOL/2025Status: DisposedITAT Kolkata23 June 2026AY 2011-20125 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that a deduction statutorily allowable cannot be denied merely because it could not be claimed in the original return due to the initial loss. The assessee is eligible for the deduction once its income turned positive.

What were the facts?

The assessee filed a return declaring a loss, which resulted in a positive income after assessment. The assessee was denied deduction under Section 80P because it was not claimed in the original return, despite becoming eligible after assessment.

What were the issues?

Whether deduction under Section 80P can be denied if not claimed in the original return when the income was a loss, but became positive after assessment.

Which sections of the Income-tax Act were involved?

Section 80P,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH,

Hearing: 23/06/2026Pronounced: 23/06/2026

आदेश / O R D E R Per George Mathan, JM: This is an appeal filed by the assessee against the order of the ADDL/JCIT(A)-9, MUMBAI [hereinafter referred to as the ‘CIT(A)’] in appeal no. ADDL/JCIT(A)-9, MUMBAI/10001/2010-11 dated 15.10.2025 for the assessment year 2011-12. 2. Shri Satyaki Mandal, AR represented on behalf of the assessee and Shri Nicholus Murmu, Addl. CIT, Sr. DR represented on behalf of the revenue.

ITA 3011/Kol/2025 3. An adjournment application has been filed which reads as follows:

ITA 3011/Kol/2025 3.1 As the adjournment application is found to be unsubstantiated, the same is rejected.

4.

The ld. Sr. DR submitted that the assessee admittedly has filed its return declaring a loss. As a consequence, the assessment order came to be completed wherein the income of the assessee has turned positive. On appeal, the ld. CIT(A) has given the assessee certain relief. It was the submission that in the order giving effect to the order of the ld. CIT(A) admittedly the assessee had not been granted deduction u/s 80P. It was the submission that the assessee had filed a rectification application u/s 154 claiming the benefit of deduction u/s 80P. It was the submission that the assessee has been denied the benefit of deduction u/s 80P on the ground that the assessee has not claimed the deduction when filing its return of income. The ld. Sr. DR vehemently supported the orders of the Assessing Officer and ld. CIT(A).

5.

I have considered this submission. A perusal of the facts of the present case clearly shows that the assessee filed its return of income originally by declaring a loss. Obviously, the assessee cannot claim the deduction u/s 80P where it is filing loss return. As a consequence

ITA 3011/Kol/2025 to the assessment, the income of the assessee turned positive. Once the income of the assessee turned positive, the assessee becomes eligible for claiming the deduction u/s 80P. The deduction statutorily allowable to the assessee, cannot be denied to the assessee just because on account of statutory provision the assessee could not claim the deduction when filing its return. It is noticed that the assessee is eligible for deduction u/s 80P and the Assessing Officer has not considered the same. This being so, the issues in this appeal are restored to the file of the Assessing Officer to verify and allow the assessee the eligible deduction 80P.

5.

In the result, the appeal of the assessee is partly allowed for statistical purposes.

Order pronounced in the open court on 23/06/2026.

Sd/- (GEORGE MATHAN) न्यधनयक सदस्य / JUDICIAL MEMBER Kolkata, Dated: 23/06/2026 RS

ITA 3011/Kol/2025 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. संबंधित आयकर आयुक्त / Concerned CIT 4. आयकर आयुक्त(अपील) / The CIT(A)- 5. ववभागीय प्रतततनधि, आयकर अपीलीय अधिकरण,/ DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file.

BY ORDER,

Asstt. Registrar, ITAT, Kolkata

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