S 640 THINNAPATTY PRIMARY AGRI CO-OP CREDIT SOCIETY LIMITED,THINNAPATTY, SALEM vs. ITO WARD 1(6), SALEM

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ITA 1115/CHNY/2026Status: DisposedITAT Chennai21 April 2026AY 2019-204 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the decision on the condonation petition for the delayed return has a direct bearing on the claim of deduction under Section 80P. Therefore, the case was restored to the AO to await the decision on the condonation application.

What were the facts?

The assessee, a primary agricultural credit society, failed to file its return of income for AY 2019-20. Subsequently, the Assessing Officer (AO) denied the claim of deduction under Section 80P. The assessee filed a condonation petition for the delayed return, which was pending.

What were the issues?

Whether the claim of deduction under Section 80P should be considered when the return of income was filed belatedly and a condonation petition is pending.

Which sections of the Income-tax Act were involved?

Section 80P,Section 139,Section 119(2)(b),Section 147,Section 144B,Section 148A,Section 148,Section 143(2),Section 142(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE KAND MS PADMAVATHY S

Hearing: 20.04.2026Pronounced: 21.04.2026

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 02.01.2026 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20.

:- 2 -: ITA No.1115/Chny/2026

2.

Brief facts of the case are as follows: The assessee is a primary agricultural credit society. Initially, the assessee society has not filed its return of income for assessment year 2019-20. During the year under consideration, the assessee society had deposited cash of Rs.11,22,722/- in the bank account maintained with The Salem District Central Cooperative Bank Ltd. Since the assessee had not filed its return of income, order clause (d) of section 148A of the Act was passed on 31.03.2023. Accordingly, the case was reopened for scrutiny assessment by issuing notice u/s.148 of the Act on 31.03.2023. However, the assessee did not file its return of income. Thereafter notices u/s.143(2) and 142(1) of the Act were issued. In response to the same, assessee filed its audit report, P&L account and balance sheet. Subsequently, during the course of assessment proceedings vide letter dated 14.11.2023, the assessee filed its return of income. Since the assessee has not filed its return of income u/s.139 of the Act, the AO denied the claim of deduction u/s.80P of the Act.

3.

Aggrieved by the assessment completed u/s.147 r.w.s. 144B of the Act, the assessee filed appeal before the First Appellate Authority (‘FAA’). After considering the submissions of the assessee, the FAA confirmed the order of the AO.

:- 3 -: ITA No.1115/Chny/2026 4. Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that the assessee has filed a condonation petition dated 31.10.2025 before the PCIT, Coimbatore u/s.119(2)(b) of the Act praying for condonation of delay in filing return of income u/s.139(1) of the Act, which is presently pending for consideration. The Ld. AR also placed on record a copy of the said condonation petition along with the postal acknowledgment evidencing its filing. It was further submitted that since the condonation petition u/s. 119(2)(b) of the Act before the competent authority has a direct bearing, the matter may be restored to the files of the AO to await the decision of the Competent Authority on the condonation application filed in terms of section 119(2)(b) of the Act.

5.

The Ld.DR supported the order of the FAA.

6.

We have heard rival submissions and perused the material on record. The assessee had approached the Competent Authority u/s.119(2)(b) of the Act for condonation of delay in filing return of income u/s.139(1) of the Act. The assessee’s application for condonation of delay u/s.119(2)(b) of the Act has a direct bearing as regards the claim of deduction u/s.80P of the Act. In event the competent authority condones the delay in filing the return of income

:- 4 -: ITA No.1115/Chny/2026 filed by the assessee necessarily the claim of deduction u/s.80P of the Act has to be considered on merits by the concerned AO. Since the assessee’s application of condonation of delay in filing the return of income is pending consideration before the Competent Authority, we deem it appropriate to restore the case to the files of the AO. The AO is directed to pass afresh order after the Competent Authority has passed the order regarding the assessee’s petition for condonation of delay in filing the return of income. It is ordered accordingly.

7.

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

Order pronounced in the open court on 21st April, 2026 at Chennai.

Sd/- Sd/- (प�मावती एस) (जॉज� जॉज� के) (PADMAVATHY S) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�ई/Chennai, �दनांक/Dated, the 21st April, 2026 RSR आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Salem 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.04.24 10:08:35 +05'30'

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