TY.SPL.103.AMBAPUR PRIMARY AGRICULTURAL COOP CREDIT SOCIETY LTD,VIKKIRAMANGALAM VILLAGE vs. INCOME TAX OFFICER, SUNGU PETTAI

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ITA 3939/CHNY/2025Status: DisposedITAT Chennai12 June 2026AY 2022-236 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the delay in filing the return of income, even if due to delayed audit completion, does not justify condonation for filing an appeal. The Tribunal found the explanation for the delay to be neither bonafide nor reasonable, and the assessee was not diligent in pursuing the appeal.

What were the facts?

The assessee, a co-operative society, filed its return of income for AY 2022-23 after the due date, claiming a deduction under Section 80P. The return was processed by CPC, disallowing the deduction due to the delay. The assessee's appeal before the CIT(A) was also filed with a significant delay and was dismissed in limine.

What were the issues?

Whether the delay in filing the return of income and the subsequent appeal can be condoned, and if the disallowance of Section 80P deduction for delayed filing is justified.

Which sections of the Income-tax Act were involved?

Section 80P,Section 139(1),Section 139(8A),Section 80AC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHENNAI BENCHES, CHENNAI

Before: HON’BLE INTURI RAMA RAO & HON’BLE MANU KUMAR GIRI

Pronounced: 12.06.2026

आयकर अपील�य अ�धकरण, चे�नई पीठ�, चे�नई INCOME TAX APPELLATE TRIBUNAL, CHENNAI BENCHES, CHENNAI BENCH: B BEFORE HON’BLE INTURI RAMA RAO, ACCOUNTANT MEMBER AND HON’BLE MANU KUMAR GIRI, JUDICIAL MEMBER ITA No.3939/CHNY/2025 िनधा�रण वष�/Assmt. Year: 2022-23) TY.SPL.103.AMBAPUR PRIMARY AGRICULTURAL INCOME TAX OFFICER COOP CREDIT SOCIETY LTD 1, VIKKIRAMANGALAM SUNGU PETTAI,PERAMBALUR PERAMBALUR-621212, TAMIL VILLAGE ,AMBAPOOR POST Vs. NADU OFFICE UDAYARPALAYAM TALUK ARIYALUR, PERAMBALUR-621701. (अपीलाथ� Appellant) (��थ� Respondent) Permanent Account Number of Assessee: AACAA1024B िनधा�रती �ारा/Assessee represented by: None राज� व �ारा/Revenue represented by: Ms.Gouthami Manivasagam, Addl. CIT

सुनवाई की तारीख / Date of conclusion of hearing: 05.05.2026 घोषणा की तारीख / Date of pronouncement: 12.06.2026 आदेश / ORDER PER INTURI RAMA RAO, ACCOUNTANT MEMBER: This appeal filed by the Assessee against the order of Learned Additional/Joint Commissioner of Income Tax (Appeals)-3, Ahmedabad dated 11.12.2025 for the Assessment Year 2022-23.

2.

The Assessee has raised the following grounds of appeal:

1) The learned Assessing Officer, CPC, erred in law and on facts in disallowing the deduction claimed under section 80P(2)(a)(i) merely on the ground of delay in filing the return, without appreciating the statutory framework governing co-operative societies under State law. 2) The learned Assessing Officer, CPC, failed to appreciate that none of the activities of the appellant are in violation of the Tamil Nadu Cooperative Societies Act, 1983, OR its Bye-laws, and hence the benefit of section 80P cannot be denied 3) The Learned Assessing Officer,CPC, failed to Consider that The appellant filed its return of income for the Assessment Year 2022-23 on 31.03.2023 under section 139(8A) due to delay in completion of the statutory cooperative audit conducted by the Cooperative Auditor appointed by the Cooperative Audit Department. Since the audit itself was completed after the due date prescribed under section 139(1) of the Act, the appellant was prevented by sufficient cause from filing its return of income within the due date. 4) The Learned Honourable Income Tax Appellate Tribunal Request to Consider that The assessee has become aware of the issuance of the circular regarding the condonation of delay in filing the return for cooperative societies. As per the circular, the assessee has filed a petition for condonation before the Honourable Chief Commissioner of Income Tax, Madurai. 5) The learned Commissioner of the Income Tax (Appeals) Should have Considered that the (Circular F.No.173/21/2023-ITA-I dated 26th July 2023) which delineates the guidelines for Co-operative Societies claiming deductions under section 80P of the Act for various assessment years spanning from AY 2018 2019 to AY 2022 2023, there is provision for the condonation of delay in furnishing the return of income. This circular further instructs that such belated returns be treated as though they were furnished within the due date specified under section 139(1) of the Income Tax act 1961. The delay in our case was directly attributable to the delayed completion of the audit of our accounts as mandated by the respective state laws. 6) The Learned Commissioner of Income Tax (Appeals), without duly considering the merits of the case, has disallowed the deduction claimed under Section 80P of the Income Tax Act, 1961. Further, the condonation petition filed by the assessee has been rejected by the Honourable Chief Commissioner of Income Tax, Madurai, despite the assessee being eligible for such condonation. Consequently, the assessee has filed a writ petition before the Honourable High Court seeking appropriate relief. 7) The assessee respectfully draw your kind attention about the Writ Petition W.P(MD)No.22115/2025 wherein the assessee had challenged the rejection of condonation by the Honourable Chief Commissioner of Income Tax, Madurai and the Honourable High Court has passed a favourable order dated on 13/ 08 /2025. In view of the above, the assessee prays that the deduction claimed under section 80P of the Income Tax Act 1961, may kindly be allowed. 8) The above grounds of appeal are without prejudice to each other and the appellant craves leave to add, alter amend OR delete any of the above grounds of appeal.

3.

Briefly, the facts of the case are that the appellant is a Co-operative Society incorporated under the provisions of The Tamilnadu Co-operative Societies Act, 1983. The appellant is formed with objects of the accepting deposits and providing credit facilities to its members who are Agriculturists. The appellant is classified as Primary Agricultural Co-operative Society. The Return of Income for the Assessment Year 2022-23 was filed on 31.03.2023 disclosing Nil income after claiming deduction of Rs.11,84,000/- u/s.80P of the Income Tax Act, 1961. The Return of Income was processed by the CPC u/s.143(1) vide intimation dated 29.12.2023 after making adjustment by disallowing the claim for deduction of Rs.11,84,000/- u/s.80P of the Act for the reason that the Return of Income was not filed within the due date prescribed u/s.139(1) of the Act.

4.

Being aggrieved by the said intimation, an appeal was filed before the ld.CIT(A) with a delay of 16 months. The ld.CIT(A) had dismissed the appeal in limine on the grounds of delay by refusing to condone the delay.

5.

Being aggrieved by the order of ld.CIT(A), the appellant is in appeal before us in the present appeal. When the matter was called-on, no none appeared on behalf of the appellant co-operative society despite due service of notice of hearing to the appellant co-operative society. Therefore, after hearing learned Sr.DR, we proceeded to dispose of the appeal on merits.

6.

We heard learned Sr.DR and perused the material available on record. The solitary issue that arises for our consideration is whether the ld.CIT(A) was justified in refusing to condone the delay in filing appeal. Admittedly, the appellant society had filed an appeal before the ld.CIT(A) with a delay of 16 months and also filed a petition seeking to condone the delay. The contents of the affidavit seeking condonation are reproduced vide 3.1 of the ld.CIT(A)’s order. On mere perusal of the contents of the Affidavit, it would be clear that the appellant attempted to explain the delay that the delay had occurred on account of delay in completion of the Audit under the Co-operative Societies Act etc.

7.

In our considered opinion, delay in completion of Audit would not lead to delay in filing appeal as both the proceedings are independent and distinct and moreover, the ld.CIT(A) relied upon several judicial precedents. No pleadings were before us by the appellant co-operative society as to how the ratio of the said decisions are not applicable to the facts of the present case. Therefore, we are of the considered opinion that the explanation offered by the appellant in support of the appellant is not bonafide and reasonable and the appellant was not diligent in pursuing the appeal, therefore, the ld.CIT(A) had rightly refused to condone the delay. We do not find any illegality or perversity in the order of ld.CIT(A). Even on merits, in view of the plain provisions of section 80AC, the non-furnishing of Return of Income within the due date prescribed u/s.139(1) of the Act would itself entitle the appellant society to claim deduction u/s.80P of the Income Tax Act. Therefore, we do not find any merit in the appeal filed by the appellant society.

8.

In the result, appeal filed by the assessee is dismissed. Order pronounced in the open Court on 12th June, 2026.

Sd/- Sd/- (MANU KUMAR GIRI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Chennai; �दनांक / Dated : 12th June, 2026 SGR, Sr.PS आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT Chennai/Madurai/Coimbatore/Salem. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “बी” ब�च, 4. चे�नई / DR, ITAT Chennai. गाड� फ़ाइल / Guard File. 5. GANGADHARA Digitally signed by GANGADHARA RAO SALEELA RAO SALEELA Date: 2026.06.18 18:24:22 +05'30'

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