SUNFLOWER UNIT A1 CO OPERATIVE HOUSING SOCIETY,PUNE vs. INCOME TAX AUTHORITY, PUNE

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE Dr. DIPAK P. RIPOTE, ACCOUNTANT MEMBER & SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No. 540/PUN/2026 Assessment Year: 2021-22 Sunflower Unit A1 Vs. Income Tax Authority Cooperative Housing Society Pune Flat No. 17, Sunflower Unit A1, Vaibhav Nagar, Pimpri, Pune – 411018. PAN: ABRAS5486M Appellant Respondent

: Assessee by Shri Gauri Manjrekar : Revenue by Shri Manish Sinha, JCIT (Virtual) : Date of hearing 29.04.2026 Date of pronouncement : 05.05.2026 आदेश / ORDER PER Dr. DIPAK P. RIPOTE, ACCOUNTANT MEMBER :

The captioned appeal at the instance of assessee pertaining to A.Y. 2021-22 is directed against the order framed by National Faceless Appeal Centre, Delhi / CIT(A) passed u/s 250 of the Income Tax Act 1961 dated 13.01.2026.

Submission on Ld. AR

ITA No. 540/Pun/2026, Sunflower Unit A1 Coop Housing Society. the Act. Assessee had earned interest income from Janata Sarkari Bank which is a cooperative bank. In this case Ld. CIT(A) upheld the disallowance made by the CPC stating that assessee had not filed return of income within the due date. Ld. CIT(A) relied on the sec. 80AC of the Act. Ld. AR submitted that CIT(A) has erred as return of income was filed within time allotted u/s 139(1) of the Act. Ld. AR invited our attention at page No. 10 of the paper book which was copy of the return of income filed by assessee. 2.1 Ld. AR submitted that the assessee is eligible for deduction u/s 80P(2)(d) of the Act. Submission of Ld. DR 3. Ld. DR relied on the order of AO. Findings and analysis 4. We have heard both the parties, perused the material on record. In this case assessee has filed return of income for A.Y 2021-22 on 31.12.2021 disclosing total income at Rs. 400/- and claiming deduction u/s 80P(2)(d) of the Act of Rs. 1,77,443/-. Copy of the income tax return filed by the assessee is in the paper book. Then assessee revised its return of income u/s 139(5) of the Act on 28.03.2022 showing the total income at Rs. 400/- and claiming deducting u/s 80P(2)(d) of the Act at Rs. 1,77,443/-. The reason for filing revised return was TDS credit. However, CPC processed it u/s 143(1) of the Act disallowing assessee’s claim u/s 80P(2)(d) of the Act. Assessee filed rectification before CPC which was also rejected. Assessee filed appeal before ld. CIT(A). Ld. CIT(A) dismissed the appeal of the assessee. The relevant paragraph of Ld. CIT(A) order 7.1.3 to 7.1.9 are reproduced are as under: 7.1.3. Therefore, irrespective of the merits of the claim under section 80P(2)(d), the deduction is statutorily barred due to the appellant's failure to file return within due date.In the present case, since the appellant filed return on 05.12.2022 i.e., after due date 15.03.2022, the appellant does not satisfy section 80AC, and consequently deduction u/s 80P(2)(d) is not allowable in law.

ITA No. 540/Pun/2026, Sunflower Unit A1 Coop Housing Society.

7.1.4. The appellant has cited several judicial pronouncements relating to allowability of 80P(2)(d) on interest received from co- operative banks. However, it is important to note that the present disallowance is not merely on the character of income, but on a threshold legal disqualification under section 80AC.Once the return is filed belatedly, the claim is rendered non-admissible by operation of law, and no further adjudication on the "merits" of 80P(2)(d) is required. Therefore, the judicial precedents relied upon by the appellant on the substantive eligibility of interest income under section 80P(2)(d) do not assist the appellant in overcoming the statutory bar under section 80AC. 7.1.5. Again, as per the CBDT's Circular No. 13/2023 dated 26.07.2023 - Remedy lies in condonation mechanism. The appellant's case, at best, may fall under the category where return was filed late due to hardship. In this regard, CBDT has issued Circular No. 13/2023 dated 26.07.2023, providing a structured mechanism for condonation of delay in filing returns where deduction u/s 80P is claimed for AY 2018-19 to AY 2022-23, subject to fulfilment of prescribed conditions and approval of competent authority. The said circular authorises the prescribed administrative authorities (CCIT/DGIT) to decide such condonation applications to mitigate genuine hardship. 7.1.6. However, it is settled that: Appellate authorities are creatures of statute, and do not possess power to condone delay in filing return for the purpose of overriding section 80AC. 7.1.7. Therefore, unless delay is duly condoned through the mechanism prescribed by CBDT under the said circular, the appellant remains ineligible for deduction u/s 80P due to section 80AC.Accordingly, the appellant is at liberty to pursue remedy under CBDT Circular No. 13/2023, but the relief cannot be granted in appellate proceedings contrary to section 80AC. 7.1.8. In view of the above facts and statutory position, I hold that the return of income was filed belatedly on 05.12.2022 against due date 15.03.2022; Hence, the appellant fails to fulfil the mandatory condition under section 80AC. Therefore, deduction u/s 80P(2)(d) is not admissible in law, irrespective of the merits. Accordingly, the disallowance of deduction u/s 80P(2)(d) made by CPC is upheld. 7.1.9. Thus, Ground no.1 relating to allowance of deduction u/s 80P(2)(d) is dismissed.

ITA No. 540/Pun/2026, Sunflower Unit A1 Coop Housing Society. 4.1 Thus, it can be observed Ld. CIT(A) rejected assessee’s claim for deduction u/s 80P(2)(d) on the ground alleging that assessee had not filed return of income within the due date. 4.2 However, we have verified the fact that assessee had filed return of income within the time allowed u/s 139(1) of the Act. therefore, Ld. CIT(A) and CPC erred in disallowing assessee’s claim for deduction u/s 80P(2)(d) on the ground that return was not filed within the time. 4.3 Ld. AR also submitted that interest earned from Janata Sarkari Bank by the assessee is eligible for deduction u/s 80P(2)(d) of the Act as Janata Sarkari Bank is a Cooperative Bank. Ld. AR relied on decision of Coordinate Bench of ITAT in the case of Shri Ganesh Co.op Hsg Sco. Ltd. Vs. ITO in ITA No. 6876/Mum/2024 and in the case of Ankur Co-operative Housing Society Ltd, [2025] 171 taxmann.com 44 (Mumbai- Trib). 4.4 In this facts and circumstances of the case we direct the AO to allow assessee’s claim for deduction u/s 80P(2)(d) of the Act. 5. In the result, the appeal of the assessee is allowed. Order pronounced on this 05th day of May, 2026.

Sd/- Sd/- (VINAY BHAMORE) (DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; िदनांक / Dated : 05 May, 2026. KRK, Sr. PS

ITA No. 540/Pun/2026, Sunflower Unit A1 Coop Housing Society. आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant. 2. ��थ� / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब�च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड� फ़ाइल / Guard File. आदेशानुसार / BY ORDER,

// True Copy // Assistant Registrar, आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.