S 1236 VALAPPADY PACCS LTD.,SALEM vs. ITO, WARD-1(6), SALEM

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ITA 2070/CHNY/2026Status: DisposedITAT Chennai19 June 2026AY 2021-223 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the eligibility of the Section 80P deduction should be decided based on the outcome of the condonation petition filed under Section 119. The appeal was remitted back to the Assessing Officer for a decision on merits after the CBDT's decision on the condonation application.

What were the facts?

The assessee, a credit cooperative society, claimed deductions under Chapter-VIA, specifically Section 80P, in its return of income. The Assessing Officer disallowed these deductions because the return was not filed within the due date. The assessee had filed a petition under Section 119 for condonation of delay.

What were the issues?

Whether the deduction under Section 80P can be allowed when the return was filed beyond the due date, and if a petition for condonation of delay under Section 119 is pending.

Which sections of the Income-tax Act were involved?

Section 80P,Section 119,Section 143(1),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

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

For Respondent: Mr. C.P. Solomon, Addl. CIT

आदेश / O R D E R

PER PADMAVATHY.S, A.M:

This appeal by the assessee is against the order of the Commissioner of Income Tax, Addl./JCIT(Appeals)-2, Gauwati (FAA), (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 20.02.2026 for Assessment Year (AY) 2021-22.

2.

The assessee is a credit cooperative society and filed the return of income for AY 2021-22 on 28.03.2022 declaring Nil income after claiming deductions under Chapter-VIA to the tune of Rs. 47,37,418/-. The return was

ITA No.2070/Chny/2026 S 1236 Valappady PACCS Ltd. :- 2 -:

processed u/s. 143(1) of the Act where the deductions claimed u/s. 80P was disallowed for the reason that the return was not filed within the due date. Aggrieved, the assessee filed further appeal before the CIT(A). Before the CIT(A), the assessee submitted that the petition u/s. 119 has been filed by the assessee and the same is pending for disposal. The assessee accordingly submitted that the deduction u/s. 80P of the Act be allowed. The CIT(A) dismissed the appeal.

3.

We have heard the parties and perused the materials available on record. The Ld. Authorized Representative (AR) submitted that submitted that the assessee has filed the petition for condonation of delay u/s. 119 of the Act in the year 2022 and the petition is still to be disposed off by CBDT. The Ld. AR also submitted a copy of the petition filed before the CBDT. Considering the overall facts and circumstances of the case, we are of the view that the deduction claimed by the assessee u/s. 80P of the Act need to be decided based on the outcome of the decision of the CBDT with regard to the condonation application filed by the assessee u/s. 119 of the Act. On perusal of the order of the CIT(A), we notice that the CIT(A) has remitted the issue back to the A.O with a direction to consider the eligibility of the deduction claimed u/s. 80P of the Act on merits based on the outcome of the condonation petition filed by the assessee. Accordingly, we remit the appeal back to the A.O with a similar direction. Needless to say that the assessee be given a reasonable opportunity of being heard. It is ordered accordingly.

ITA No.2070/Chny/2026 S 1236 Valappady PACCS Ltd. :- 3 -:

4.

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

Order pronounced on 19th day of June, 2026 at Chennai.

Sd/- Sd/- (मनु कुमार िग"र) (पदमावती यस) (Manu Kumar Giri) (Padmavathy.S) �याियक �याियक सद�य �याियक �याियक सद�य सद�य / Judicial Member सद�य लेखा लेखा सद�य लेखा लेखा सद�य सद�य /Accountant Member सद�य चे�नई/Chennai, �दनांक/Dated: 19th June, 2026. EDN, Sr. P.S 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 Digitally signed by EJTADA DURGA EJTADA DURGA NARESH NARESH Date: 2026.06.23 11:56:38 +05'30'

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