KAYATHAR MILK PRODUCERS COOP SOCIETY,TUTUCORIN vs. ITO, WARD-2,, TUTICORIN

ITA 2649/CHNY/2026Status: DisposedITAT Chennai24 September 2026AY 2019-205 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's petition under Section 119(2)(b) for condonation of delay in filing the return of income was pending before the PCIT, Madurai. The Tribunal considered the decision of the Hon'ble Jurisdictional High Court in a similar case, which allowed petitions for condonation of delay. Given that the issue before the Tribunal was intrinsically linked to the outcome of the condonation petition, the Tribunal decided to await the PCIT's decision. The Tribunal restored the matter to the file of the Jurisdictional Assessing Officer (JAO) with a direction to consider the assessee's claim afresh after receiving the order from the PCIT on the condonation petition. The JAO was directed to provide the assessee with an adequate opportunity of being heard and then pass an appropriate order. All contentions of the assessee, including its claim for deduction under Section 80P, were kept open for consideration at that stage. The grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, Kayathar Milk Producers Co-operative Society, is engaged in the business of supplying milk and claims eligibility for deduction under Section 80P of the Income Tax Act, 1961. For Assessment Year 2019-20, the assessee made cash deposits of Rs. 10,00,000/- in FY 2018-19 but did not file its return of income. The case was reopened under Section 147, and a notice under Section 148 was issued. The assessee filed its return on 07.04.2023, declaring Nil income after claiming a deduction of Rs. 6,48,739/- under Section 80P(2)(b). The Assessing Officer (AO) denied this deduction, citing the amendment to Section 80AC and the failure to file the return within the due date under Section 139(1), adding Rs. 6,48,739/-. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO's order. The assessee appealed to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the assessee is eligible for deduction under Section 80P(2)(b) of the Act for Assessment Year 2019-20, given that the return of income was filed belatedly after the due date prescribed under Section 139(1) of the Act? Assessee's Contention: The assessee argued that its petition under Section 119(2)(b) for condonation of delay in filing the return was pending before the Principal Commissioner of Income Tax (PCIT), Madurai. The assessee relied on the decision of the Hon'ble Madras High Court in T943 Vickrapandiyam Primary Agricultural Co-operative Credit Society Ltd. v. CCIT [2026] 187 taxmann.com 97 (Mad.), which directed appropriate consideration of delay condonation petitions. Revenue's Contention: The revenue, through the AO and confirmed by the CIT(A), contended that the amendment to Section 80AC of the Act, effective from 01.04.2018, mandates filing the return of income on or before the due date under Section 139(1) to claim deductions under Section 80P.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: SHRI ABY T VARKEY & SHRI S. R. RAGHUNATHA

Hearing: 20.07.2026Pronounced: 24.09.2026

PER S. R. RAGHUNATHA, AM :

The present appeal is filed by the assessee against the order dated 11.03.2026 passed by the learned Commissioner of Income Tax (Appeals), NFAC, Delhi (hereinafter referred to as “ld.CIT(A)”), dismissing the appeal filed by the assessee against the assessment order dated 02.02.2024 passed u/s.147 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), pertaining to Assessme

The order continues below.

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