M P RAJYA SAHAKARI BANK KARAMCHARI SAHAKARI SAKH SAMITI MYDT,BHOPAL vs. DCIT/ACIT 1(1), BHOPAL

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by order of first appeal dated 30.06.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”], which in turn arises out of assessment-order dated 25.03.2021 passed by learned National e-Assessment Centre, Delhi [“AO”] u/s 143(3) r.w.s. 143(3A) & 143(3B) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2018-19, the assessee has filed this appeal on the grounds as mentioned in Form No. 36 (Appeal Memo).

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M.P. Rajya Sahakari Bank Karamchari Sahakari Sakh Samiti Mydt. ITA No. 744/Ind/2025 – AY 2018-19 2. Precisely stated, the facts of case are such that the assessee, a co-

operative society, filed its return of AY 2018-19 on 09.10.2018 declaring a

total income of Rs. Nil after claiming deduction of Rs. 37,58,313/- u/s 80P.

The case of assessee was selected for scrutiny assessment and the AO

issued notices u/s 143(2)/142(1). Ultimately, the AO completed assessment

u/s 143(3) wherein the deduction u/s 80P was denied to assessee on the

basis that the assessee filed return on 09.10.2018 after due date of

31.08.2018 (extended from 31.07.2018) u/s 139(1) and therefore the

restrictive provision of section 80AC was triggered according to which the

deduction u/s 80P would not be allowed if the return is not filed on or

before the due date specified u/s 139(1). Aggrieved, the assessee carried

matter in first-appeal whereupon the Ld. CIT(A) upheld AO’s order and

dismissed appeal of assessee. The concluding para of Ld. CIT(A)’s order

reads as under:

“Decision: The grounds of appeal, assessment order, submissions of the appellant and the material available on records have been carefully considered. As per the provisions of section 80AC of the Act, no deductions are allowed, unless the assessee furnishes a return of his income within the time limit specified u/s 139(1) of the Act. As the appellant has failed to file his return of income within the prescribed time limit u/s 139(1) of the Act, the AO has rightly made the disallowance of deduction u/s 80(P) of the Act. Accordingly, the disallowance made by the AO is upheld and the grounds of appeal are dismissed.” 3. Before us, Ld. AR for assessee made a very precise and

straightforward submission. He submitted that the lower authorities have

wrongly inferred that the due date for filing of return u/s 139(1) in the case

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M.P. Rajya Sahakari Bank Karamchari Sahakari Sakh Samiti Mydt. ITA No. 744/Ind/2025 – AY 2018-19 of assessee was 31.08.2018. He submitted that the assessee is a co-

operative society under the aegis of The Madhya Pradesh Co-operative

Societies Act, 1960 and in terms of section 58 of the said act, the assessee

was required to get its accounts compulsorily audited. Therefore, the case of

assessee was falls within the ambit of sub-clause (ii) of clause (a) of

Explanation 2 to section 139(1), reading as under:

“Explanation 2 – In this sub-section, “due date” means, -- (a) Where the assessee other than an assessee referred to in clause (aa) is – (i) a company; or (ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or (iii) XXX the 30th day of September of the assessment-year. [highlighted by us] 4. Therefore, Ld. AR submitted, the due date for submission of return by

assessee was 30.09.2018 for AY 2018-19 under consideration. However, the

said due date was initially extended by CBDT to 15.10.2018 vide Order F.No.

225/358/2018/ITA-II dated 24.09.2018 u/s 119 of the Act and

subsequently re-extended to 31.10.2018 vide order dated 08.10.2018; copies

of these orders are filed in Paper-Book. Therefore, the due date u/s 139(1)

for filing of return by assessee-society was 31.10.2018 and not 30.09.2018

as taken into consideration by lower authorities. Since the assessee had

filed return on 09.10.2018, the same was well before the due date of

31.10.2018 and the restrictive provision of section 80AC would not apply. Ld.

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M.P. Rajya Sahakari Bank Karamchari Sahakari Sakh Samiti Mydt. ITA No. 744/Ind/2025 – AY 2018-19 AR also relied upon a direction decision of ITAT, Ahmedabad – ITA No.

1383/Ahd/2025 – Shree Yogeshwar Co-operative Credit Soc. Ltd. Vs.

ITO, Ward-1, Patan, order dated 20.01.2026, in favour of assessee. Copy

of order of ITAT is filed in Paper-Book and our attention is drawn to Paras 6

to 9 of order. The facts of case are very much identical to present appeal

before us. The case relates to AY 2018-19 and the return was filed on

08.10.2018; in present appeal the assessee has filed return on 09.10.2018.

Accordingly, Ld. AR prayed that the orders of lower authorities be set aside

and direction be given to the Ld. AO to pass a fresh assessment-order giving

deduction to assessee u/s 80P as claimed in return.

assessee filed return before due date of 31.10.2018 and hence the restrictive

provision of section 80AC would not apply. However, he submitted that the

AO has not examined the deduction claimed by assessee on merit, therefore

the case should go back to the file of Ld. AO for examining the deduction on

merit.

the documents held in Paper-Book including the orders of lower authorities

in the light of legal provisions and the decision cited before us. After a

careful consideration, we agree that the assessee has filed return of income

on 09.10.2018 before due date of 31.10.2018 specified u/s 139(1) and hence

the provision of section 80AC is not attracted. Consequently, the lower-

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M.P. Rajya Sahakari Bank Karamchari Sahakari Sakh Samiti Mydt. ITA No. 744/Ind/2025 – AY 2018-19

authorities are not justified in invoking section 80AC and denying deduction

u/s 80P to assessee. However, we also agree to the submission made by Ld.

DR that since the allowability of deduction u/s 80P on merit has not been

examined by AO, the matter must be restored to the file of Ld. AO for

adjudicating the claim of deduction on merit. Accordingly, we restore this

matter to the file of AO for the limited purpose of examination of deduction

on merit, in accordance with the provisions of section 80P. Needless to

mention that the AO shall give necessary opportunity of hearing to assessee

and the assessee shall also extend full co-operation to Ld. AO. Ordered

accordingly.

Order pronounced in open court on 27/04/2026

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Indore िदनांक/Dated : 27/04/2026 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYAssistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore

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