TODA SEVA SAHKARI MANDALI LTD,TODA vs. INCOME TAX OFFICER, WARD AMRELI, AMRELI

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ITA 227/RJT/2026Status: DisposedITAT Rajkot12 June 2026AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee did not file its return within the prescribed time. However, it was unclear if an application for condonation of delay under Section 119(2)(b) was filed. The issue was restored to the Assessing Officer for verification.

What were the facts?

The assessee, a co-operative society, failed to file its return of income within the due date. Consequently, the Assessing Officer disallowed its claim for deduction under Section 80P. The CIT(A) upheld this decision.

What were the issues?

Whether the assessee is eligible for deduction under Section 80P when the return of income was filed beyond the due date, and if an application for condonation of delay was filed.

Which sections of the Income-tax Act were involved?

Section 147,Section 148A,Section 139(1),Section 80P,Section 119(2)(b),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Hitesh Khandesa, Ld. AR
For Respondent: Shri Anandi Dixit, Ld. Sr. DR
Hearing: 11/06/2026Pronounced: 12/06/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member आयकर अपील सं./ITA No. 227/RJT/2026 [ �नधा�रण वष�/Assessment Year: 2019-20 ] Toda Seva Sahakari, Mandali Ltd., Income Tax Officer, At Toda Tal Lathi, Dist. Amreli Ward-Amreli Vs. Gujarat-365430 Gujarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AAAAT2457R (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : Shri Hitesh Khandesa, Ld. AR Respondent by : Shri Anandi Dixit, Ld. Sr. DR Date of Hearing : 11/06/2026 Date of Pronouncement : 12/06/2026 :: ORDER :: Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2019-20, is directed against the order under section-250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘Ld.CIT(A)/NFAC’], dated 14.01.2026, which in turn arises out of an assessment order passed by the Assessing Officer u/s 147 of the Act, dated 23.02.2024. 2. Brief facts of the case are that information was available with the Department through the Insight Portal that the assessee had not filed its return of income for the assessment year under consideration despite having entered into various financial transactions during the Financial Year 2018-19. On verification of the available

ITA No. 227/RJT/2026 [ AY 2019-20 ] Toda Seva Sahakari, Mandali Ltd. v. ITO information, it was noticed that no return of income had been filed by the assessee. Accordingly, an enquiry letter u/s 148A(a) of the Income-tax Act, 1961, was issued calling upon the assessee to furnish clarification and explanation regarding the transactions. Thereafter, notice u/s 148A(b) of the Act was issued. In response, the assessee submitted that it was a co-operative society and was eligible for deduction under section 80P of the Act. However, the Assessing Officer observed that the assessee had not filed its return of income within the time prescribed u/s 139(1) of the Act. The return of income was ultimately filed only on 09.04.2023. Therefore, the Assessing Officer held that the assessee was not entitled to deduction u/s 80P of the Act and consequently disallowed the claim of deduction amounting to Rs.11,98,599.

3.

Dissatisfied with the above order, assessee preferred an appeal before the Ld. CIT(A), where the appeal of the assessee was dismissed by sustaining the order of A.O.

4.

Aggrieved by the assessment order, the assessee preferred the present appeal. The Ld. Authorised Representative (AR) submitted that the assessee is a co-operative society and is otherwise eligible for deduction under section 80P of the Act. It was contended that the deduction ought not to have been denied merely on technical grounds and prayed that the claim of deduction be allowed.

4.

On the other hand, the Ld. DR strongly supported the orders of the lower authorities. He submitted that the assessee had admittedly failed to file its return of income within the due date prescribed u/s 139(1) of the Act and the return was filed only on 09.04.2023. Therefore, in view of the statutory provisions, the Assessing Officer was justified in denying the deduction claimed u/s 80P of the Act.

5.

We have heard, the rival submissions and perused the material available on record. We find that the assessee claims to be a co-operative society eligible for deduction under section 80P of the Act. However, it is an undisputed fact that the Page 2 of 3

ITA No. 227/RJT/2026 [ AY 2019-20 ] Toda Seva Sahakari, Mandali Ltd. v. ITO assessee did not file its return of income within the due date prescribed under section 139(1) of the Act. The return of income was filed only on 09.04.2023, much beyond the statutory time limit.

6.

At the same time, from the records available before us, it is not clear whether the assessee has filed any application u/s 119(2)(b) of the Act before the competent authority seeking condonation of delay in filing the return of income. In our considered opinion, this aspect requires verification by the Assessing Officer. Accordingly, in the interest of justice, we deem it appropriate to restore this issue to the file of the Assessing Officer for fresh examination. The Assessing Officer shall verify whether any application under section 119(2)(b) of the Act has been filed by the assessee and whether any relief has been granted by the competent authority. Thereafter, the Assessing Officer shall decide the assessee’s claim for deduction under section 80P of the Act in accordance with law after providing reasonable opportunity of being heard to the assessee.

7.

Thus, the ground raised by the assessee is allowed for statistical purposes. In the result, the appeal of the assessee is allowed for statistical purposes. 8.

Order is pronounced in the open Court on 12/06/2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member राजकोट/Rajkot //True Copy// िदनांक/ Date: 12/062026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT By order 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File Sr. Private Secretary ITAT, Rajkot

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