ED 847 NARAIKINARU MILK PRODUCERS CO OPERATIVE SOCIETY LIMITED,NARAIKINARU vs. THE INCOME TAX OFFICER WARD 2, NAMAKKAL

The Assessee raised the following grounds of appeal : “1. The learned Commissioner of Income Tax (Appeals) erred in law and on facts in passing the impugned order without considering that the delay in filing the return of income had already been condoned by the Hon'ble Chief Commissioner of Income Tax under section 119(2)(b) of the income-tax Act, 1961

Briefly the facts of the case are that appellant is a Co-operative Society. It is formed with object of providing credit facilities to its members and accepting deposits from its members. No return of income was filed by the appellant under the provisions of section 139(1) of the Act for the Assessment Year 2019-20. However, based on the information that the appellant society had made cash withdrawal of Rs.3,01,94,100/- from the bank account maintained with UCO Bank during the previous year relevant to assessment year under consideration. The Jurisdictional Assessing Officer formed an opinion that income got escaped assessment to tax. Accordingly, a notice u/s.148 was issued on 30.03.2023 after duly complying with the procedure laid down u/s.148A of the Act. In response to notice u/s.148, the appellant society filed the Return of Income on 19.09.2023 disclosing income of Rs.31,180/- after claiming the deduction u/s.80P of the Income Tax Act of Rs.4,18,890/-. Against the said Return of Income, the assessment year completed by e-Assessment Unit of the Department (herein after called ‘AO’) vide order dated 29.02.2024 passed u/s.147 read with section 144B of the Income Tax Act at a total income of Rs.4,18,890/-. While doing so, the Assessing Officer, denied claim for deduction u/s.80P(2)(b)(i) of the Act of Rs.4,18,890/- by holding that the appellant society had not filed return of income within due date prescribed u/s.139(1) of the Income Tax Act placing reliance on the provision of section 80AC of the Act.

Being aggrieved, an appeal was filed before the ld.CIT(A). However, ld.CIT(A) dismissed the appeal for non-prosecution.

We heard rival submissions and perused the material available on record. We find that the Assessing Officer had denied deduction u/s.80P solely on the ground that the Return of Income was not filed within the due date u/s.139(1) of the Act. Even, on appeal before the ld.CIT(A), the ld.CIT(A) confirmed the action of the Assessing Officer by passing a very reasoned order placing reliance on the provision of section 80AC of the Act. Therefore, we do not find any illegality or perversity in the order of ld.CIT(A) since the order of the ld.CIT(A) in consonance with the plain provision of the Act, thus, we do not find any merit in the appeal filed by the assessee. Accordingly, grounds of appeal raised by the assessee are dismissed.

In the result, appeal of the assessee is dismissed. Order pronounced in the open Court on 29th April, 2026.