R352 THIMMACHIPURAM PRIMARY AGRI COOPERATIVE CREDIT SOCIETY LIMITED,NN38A ON 33A ,MUSIRI S.O MUSIR TIRUCHIRAPPALLAI vs. INCOME TAX OFFICER , 16-B, CHINNANDAN KOIL STREET, KARUR 639001,

PDF · subscribers
ITA 1263/CHNY/2026Status: DisposedITAT Chennai19 May 2026AY 2022-234 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, respectfully following a High Court decision, remitted the appeals back to the Assessing Officer. The AO is directed to examine compliance with the High Court's condition of paying a token amount and then allow the Section 80P deduction if the assessee is otherwise eligible.

What were the facts?

The assessee, a primary credit cooperative society, failed to file its income tax returns within the due date due to a delayed audit. The deduction under Section 80P was denied by the Assessing Officer and the FAA because the delay in filing was not condoned.

What were the issues?

Whether the deduction under Section 80P can be allowed to a cooperative society that filed its return of income belatedly, despite the delay not being formally condoned.

Which sections of the Income-tax Act were involved?

Section 80P,Section 139(1),Section 80AC,Section 139(8A),Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI

Before: MS. PADMAVATHY.S & SHRI MANU KUMAR GIRI

For Respondent: Mr. Gautam S.Mukundan, JCIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M: These appeals by the assessee are against the separate orders of the Commissioner of Income Tax (Appeals), Addl./JCIT(A)-1, Pune (in short "FAA") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") both dated 02.01.2026 for Assessment Years (AYs) 2021-22 & 2022-23. The common issued contented in both the appeals pertain to the denial of deduction u/s. 80P of the Act for the reason that the assessee has not filed the return of income within the time as prescribed u/s. 139(1) of the Act.

ITA Nos.1262 & 1263/Chny/2026 R352 Thimmachipuram Primary Agriculture Cooperative Credit Society Ltd., :- 2 -:

2.

The assessee is a primary credit cooperative society registered under the Tamil Nadu Cooperative Societies Act, 1983. Since the audit of the cooperative society was completed after due date for filing the return of income, the assessee did not file the return of income within the due date as prescribed u/s. 139(1) of the Act. The assessee was issued an intimation by the department regarding filing of return of income u/s.139(8A) of the Act and the assessee in response filed the return of income on 01.11.2023 for both AYs 2021-22 & 2022-23. The return was processed u/s. 143(1) of the Act where the deduction claimed u/s.80P by the assessee in the return of income was disallowed. Aggrieved, the assessee filed further appeal before the FAA, who dismissed the appeal stating that though the assessee has filed petition for condonation no order granting condonation was placed on record. The FAA has further stated since the delay in filing the return is not condoned as per the provisions of Section 80AC of the Act, the deduction u/s. 80P cannot be allowed to the assessee. The assessee is in appeal before the Tribunal against the order of the FAA.

3.

None appeared on behalf of the assessee. The Ld. Departmental Representative (DR), on the other hand, fairly brought to the attention of the Bench the decision of Hon'ble Madurai Bench Madras High Court dated 13.08.2025 where the Hon'ble High Court while considering the issue of allowing the deduction u/s.80P to those petitioners who have filed their return of income belatedly and issued the following directions:

“4. The Hon'ble Supreme Court in Commissioner Of Sales Tax, State of Uttar Pradesh v. Auriaya Chamber of Commerce reported in 1986(25)ELT 867 has held that the procedures are hand-maids of justice and not the mistress of law. Applying the above ratio, I am of the

ITA Nos.1262 & 1263/Chny/2026 R352 Thimmachipuram Primary Agriculture Cooperative Credit Society Ltd., :- 3 -:

view that the impugned orders are liable to be quashed with a consequential direction to the concerned assessing officer to finalise the assessment by extending the benefit of Section 80P(2d) of the Income Tax Act. Since the petitioners have delayed in filing the returns in time, the petitioners shall also pay a token amount of Rs.5,000/- each, to the Adyar Cancer Institute (WIA), East Canal Bank Road, Adyar, Chennai, within a period of 30 days from the date of receipt of a copy of this order. Subject to the petitioners complying the same, the second respondent shall pass the fresh assessment order by extending the benefit of Section 80P of the Income Tax Act, if the petitioners are otherwise entitled to the relief but for the delay in filing the returns in time.”

4.

Our attention is further drawn to the fact that the assessee is one of the petitioners before the Hon'ble High Court (Refer page 3 of the order of the High Court). Respectfully following the above directions of the Hon'ble High Court (supra), we remit the appeal back to the A.O to examine whether the assessee has complied with the condition upon which the delay was to be condoned i.e. payment of the token amount of Rs.5000 to Adyar Cancer Institute and allow the deduction u/s. 80P of the Act if the assessee is otherwise entitled to the deduction.

5.

In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced on 19th day of May, 2026 at Chennai.

Sd/- Sd/- (मनु कुमार िग!र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) लेखा सद लेखा सद�य �य /Accountant Member �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा सद सद �य �य चे�नई/Chennai, �दनांक/Dated: 19th May, 2026. EDN, Sr. P.S

ITA Nos.1262 & 1263/Chny/2026 R352 Thimmachipuram Primary Agriculture Cooperative Credit Society Ltd., :- 4 -:

आदेश क� �ितिल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकर आयु!/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय �ितिनिध/DR 5. गाड� फाईल/GF EJTADA Digitally signed by EJTADA DURGA DURGA NARESH Date: 2026.06.01 NARESH 14:31:59 +05'30'

More judgments on Section 80P

All 5,069 judgments and leading authorities on Section 80P →

Recent GST High Court judgments

Search GST case law →