AMMAPALAYAM MILK CO OPERATIVE SOCIETY,PERAMBALUR vs. INCOME TAX OFFICER, PERAMBALUR

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ITA 3270/CHNY/2025Status: DisposedITAT Chennai04 May 2026AY 2018-20195 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, acknowledging the assessee's nature and the arguable issue. The case was restored to the AO to await the decision on the assessee's pending condonation petition for the delayed return.

What were the facts?

The assessee, a co-operative milk society, filed its income tax return one day late due to alleged technical glitches. This delay led to the disallowance of deduction under Section 80P by the CPC.

What were the issues?

Whether the delay in filing the return of income warrants disallowance of deduction under Section 80P, and whether the pending condonation petition under Section 119(2)(b) should be considered.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(1),Section 139(1),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA

Hearing: 04.05.2026Pronounced: 04.05.2026

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 29.03.2023 passed under

ITA No.3270/CHNY/2025 :- 2 -: section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.

2.

There is a delay of 898 days in filing the present appeal. The Secretary of the assessee society has filed an affidavit explaining the reasons for the delay and praying for condoning the delay. It is submitted that the assessee is a co-operative society of milk producers, consisting predominantly of illiterate members engaged in rearing of milk animals, and does not have access to computers or internet facilities. It was further submitted that the secretary of the society is not technically proficient and is dependent on third parties for statutory compliances, which resulted in the delay in filing the appeal. The Ld. AR further submitted that the issue involved in the present appeal relates to denial of deduction u/s.80P of Act, by the CPC in the intimation issued u/s.143(1)(a) of the Act on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act. It was contended that the delay in filing the return of income is only one day, allegedly due to technical glitches, and that the assessee has already filed a condonation petition before the competent authority, which is pending consideration. Accordingly, it was submitted that the assessee has a prima facie case on merits.

ITA No.3270/CHNY/2025 :- 3 -: 3. On perusal of the reasons stated and the submissions of the Ld.AR and having regard to the nature of the assessee as well as the fact that the issue involved in the appeal is prima facie arguable, we are satisfied that there existed sufficient cause for the delay in filing the appeal. Accordingly, we condone the delay and proceed to dispose off the appeal on merits.

4.

Brief facts of the case are as follows: The brief facts of the case are that the assessee is a primary co-operative society engaged in the business of supply of milk. For the assessment year 2018–19, the assessee filed its return of income on 01.11.2018, with a delay of one day as against the due date prescribed u/s.139(1) of the Act, which was 30.10.2018. The return of income was processed under section 143(1) of the Act by the CPC, Bengaluru, wherein the claim of deduction u/s.80P of the Act was disallowed on the ground that the return of income was not filed within the due date prescribed under section 139(1) of the Act.

5.

Aggrieved, assessee filed appeal before the First Appellate Authority (FAA). After considering the submissions of the assessee, the FAA confirmed the order of the AO.

ITA No.3270/CHNY/2025 :- 4 -: 6. Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that the delay of one day in filing the return of income is only due to traffic in the portal on the last day of filing and the assessee has filed a condonation petition dated 27.03.2025 before the PCCIT, Madurai 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. 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.

7.

The Ld.DR supported the order of the FAA.

8.

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

ITA No.3270/CHNY/2025 :- 5 -: 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.

9.

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

Order pronounced in the open court on 4th May, 2026 at Chennai.

Sd/- Sd/- (एस.आर. रघुनाथा) (जॉज� जॉज� के) (S.R. RAGHUNATHA) (GEORGE GEORGE K) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�ई/Chennai, �दनांक/Dated, the 4th May, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Madurai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.05.06 11:50:49 +05'30'

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