OMKARA CO.OPERATIVE HOUSING SOC. LTD,MUMBAI vs. ITO WD 19(1) (1), MUMBAI

The Learned AR submitted that the assessee is a cooperative housing society and it filed its return of income for A.Y. 2019-20 on 19.9.2019, wherein it claimed deduction under section 80P(2)(d) of the Act to the tune of Rs.2,32,662/-. The Assessing Officer (CPC), while proceeding return under section 143(1) of the Act, took the due date of filing of the return of income for the year under consideration as 31.8.2019. Since the return of income was filed by the assessee on 19.9.2019, i.e. beyond the due date prescribed under section 139(1), deduction claimed by the assessee under section 80P of the Act was disallowed by CPC and the same was also confirmed by learned CIT(A).

The Learned AR submitted that the accounts of the assessee is required to be audited by a Chartered Accountant as per section 81 of the Maharashtra Cooperative Society Act, 1960. He further submitted that the due date of filing of return of income under section 139(1) of the Act, in respect of the persons whose account are required to be audited under the Income Tax Act or under any other law was 30th September 2019 for the year under consideration. He further submitted that the due date of filing return of income for such kind of assessees was extended by the CBDT to 31st October, 2019, vide its letter dated 27.9.2019. Accordingly, the learned AR submitted that the due date for filing return of income for the assessee for the year under consideration was 31st October 2019 and the assessee has filed return of income on 19.9.2019, i.e., very much before the due date. Accordingly he submitted that the Assessing Officer was not justified in disallowing deduction claimed under section 80P of the Act.

The Learned DR, on the contrary, supported the order passed by learned CIT(A).

Having heard the rival submissions, I find merit in the contentions of the assessee. I noticed that as per section 81 of the Maharashtra Cooperative Society Act, 1960, the account of the assessee is required to be audited. In respect of assessees whose accounts are required to be audited in any other law also, due date for filing the return of income under section 139(1) is 30th September 2019, which has been extended to 31st October 2019 for AY 2019- 20. I noticed that the Assessing Officer has taken the due date for filing the return of income for the assessee for the year under consideration as 31.8.2019, which is not in accordance with the provisions of the Act. Since the assessee has filed return of income within the due date prescribed under section 139(1) of the Act, I am of the view that the tax authorities are not justified in denying the claim under section 80P of the Act. Accordingly, I set

In the result, appeal filed by the assessee is allowed.