JIJAMATA MAHILA GRAMIN BIGAR SHETI SAHAKARI PAT SANSTHA,SAKOLI vs. ITO WARD -1, BHANDRA

ITA 102/NAG/2026Status: DisposedITAT Nagpur12 October 2026AY 2020-215 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, Jijamata Mahila Gramin Bigar Sheti Sahakari Pat Sanstha, is a credit cooperative society. For Assessment Year 2020-21, it did not file its return of income by the due date. The Assessing Officer (AO), acting on information from the Insight portal and believing income had escaped assessment, issued a notice under Section 148. The assessee subsequently filed a return on June 11, 2024, disclosing NIL income after claiming a deduction of Rs. 5,68,785 under Section 80P(2)(a)(i). The AO denied this deduction, citing non-compliance with Section 80AC, and also disallowed interest on fixed deposits of Rs. 4,60,527 under Section 40A(ia). The total income was assessed at Rs. 10,29,312. The CIT(A) confirmed the denial of the Section 80P deduction but granted relief on other grounds, partly allowing the assessee's appeal. The assessee's appeal to the ITAT challenges the denial of the Section 80P deduction.

What did the Tribunal hold?

The Tribunal noted that the sole dispute revolved around the denial of deduction under Section 80P(2)(a)(i) due to the delay in filing the return of income. The assessee contended that the delay was bonafide, stemming from a belief that the income was exempt, and that an application for condonation of delay under Section 119(2)(b) was pending before the Principal CIT. The Tribunal, considering the principles of natural justice and the pending condonation application, decided to grant the assessee one more opportunity. The order of the CIT(A) on the disputed issue was set aside, and the issue was restored to the file of the Assessing Officer for adjudication afresh. The AO was directed to consider the outcome of the condonation application and provide the assessee with an adequate opportunity of hearing. The grounds of appeal were allowed for statistical purposes.

What were the issues?

1. Whether the assessee is entitled to claim deduction under Section 80P(2)(a)(i) of the Income Tax Act, 1961, when the return of income was not filed within the due date specified under Section 139(1) and the conditions of Section 80AC were not complied with? Assessee's Contention: The assessee argued that the denial of deduction under Section 80P(2)(a)(i) by the CIT(A) was erroneous. The delay in filing the return was due to a bonafide presumption that the income was exempt and not a deliberate act. The assessee has filed an application under Section 119(2)(b) for condonation of delay before the Principal CIT, Nagpur, which is pending. They relied on factual paper books and judicial decisions. Revenue's Contention: The Revenue supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(2)(a)(i),Section 80AC,Section 139(1),Section 148,Section 40A(ia),Section 147,Section 144B,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 07.10.2026Pronounced: 12.10.2026

The appeal is filed by the assessee against the order of CIT(A)/NFAC Delhi sustaining the denial of claim of deduction u/sec. 80P(2)(a)(i) of the Act made by the assessing officer.

2.

At the time of hearing, the Ld.AR submitted that there is a delay of 5 days in filing the appeal before Hon'ble Tribunal and the assessee has filed the affidavit of the assessee for condonation of delay. On consideration of facts and information mentioned in the affidavit, there is a reasonable cause explained and the Ld. DR. has no specific objections. Accordingly, the delay is condoned and the appeal is admitted.

ITA.No.102

The order continues below.

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