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

ITA 2649/CHNY/2026Status: DisposedITAT Kolkata24 September 2026AY 2019-205 pages
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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 issue before the Tribunal was intrinsically connected with the outcome of this condonation petition. Therefore, the Tribunal deemed it appropriate to await the decision of the PCIT rather than adjudicating the claim for deduction under Section 80P at that stage. The Tribunal relied on the jurisdictional High Court's decision in similar cases. The matter was restored 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 an opportunity of being heard and pass an appropriate order. All contentions of the assessee, including the 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 supplying milk and claims deduction under Section 80P. For Assessment Year 2019-20, the Income Tax Officer (ITO) reopened the case under Section 147, citing cash deposits of Rs. 10,00,000/- and non-filing of the return. The assessee filed its return belatedly on 07.04.2023, claiming a deduction of Rs. 6,48,739/- under Section 80P(2)(b). The ITO denied this deduction, adding Rs. 6,48,739/-, as the return was not filed within the due date under Section 139(1). The Commissioner of Income Tax (Appeals) [CIT(A)] confirmed the ITO's order, citing the amendment to Section 80AC. The assessee appealed to the ITAT against the CIT(A)'s order.

What were the issues?

1. Whether the assessee is eligible for deduction under Section 80P(2)(b) of the Income Tax Act, 1961, when the return of income was filed belatedly, and Section 80AC mandates filing within the due date under Section 139(1)? 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.), where similar petitions for condonation of delay were allowed. Revenue's contention: The revenue, through the Assessing Officer (AO) and confirmed by the CIT(A), contended that the amendment to Section 80AC w.e.f. 01.04.2018 mandates filing the return of income on or before the due date under Section 139(1) to claim deduction under Section 80P.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC,Section 139(1),Section 147,Section 148,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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