THE METTURDAM TANSI & TAMIN EMPLOYEES CO-OP THRIFT CREDIT SOCIETY LIMITED,SALEM vs. ITO, NFAC, DELHI

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ITA 801/CHNY/2022Status: DisposedITAT Chennai28 October 2022AY 2018-20194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have waited for the decision of the CBDT on the assessee's petition for condonation of delay. The matter was remitted back to the CIT(A) to pass an order after the CBDT's decision.

What were the facts?

The assessee, a co-operative credit society, filed its income tax return belatedly for AY 2018-19. It claimed a deduction under Section 80P, which was denied by the Assessing Officer due to the late filing.

What were the issues?

Whether a belatedly filed return can claim deduction under Section 80P when Section 80AC mandates timely filing? Should the appellate authority wait for a decision on delay condonation pending before the CBDT?

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC,Section 119

AI-generated summary — verify with the full judgment below

Before: Shri V. Durga Rao & Shri Manoj Kumar Aggarwal

Hearing: 26.10.2022Pronounced: 28.10.2022

O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), New Delhi, dated 05.08.2022 relevant to the assessment year 2018-19.

2.

Facts are, in brief, that the assessee is co-operative credit society, filed its return of income on 31.03.2019, admittedly not under section 139(1) of the Income Tax Act, 1961 [“Act” in short]. The assessee has declared income of ₹.38,55,180/- and thereafter claimed deduction under section 80P of the Act of ₹.38,55,180/- and field its return at NIL. The Assessing Officer (CPC) processed the return and denied the claim of the assessee.

3.

The assessee filed an appeal before the ld. CIT(A). So far as merits of the case is concerned, the ld. CIT(A) has noted that as per provisions contained in section 80AC of the Act, which was substituted by the Finance Act, 2018 with effect from 01.04.2018, the assessee has to file the return in time to claim a deduction under section 80P of the Act. In this case, the assessee has filed the return belatedly. Therefore, the Assessing Officer, CPC has rejected the claim of deduction. Accordingly, the ld. CIT(A) has confirmed the order passed by the Assessing Officer.

4.

In so far as petition pending before the CBDT in respect of delay condonation filed under section 119 of the Act, the ld. CIT(A) was of the opinion that the proceedings before the CBDT is different and the appeal filed before the ld. CIT(A) is different and accordingly, the ground raised by the assessee was rejected.

5.

The assessee carried the matter in appeal before the ITAT. None appeared on behalf of the assessee. However, the assessee filed its written submissions. Hence, we proceed to decide the appeal on merits after hearing the ld. DR.

6.

We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below and find that so far as merits of the case is concerned, the ld. CIT(A), by following the amended provision of section 80AC of the Act, confirmed the order passed by the Assessing Officer, CPC. We find that in this case, admittedly, the assessee filed the return of income belatedly and therefore, the ld. CIT(A) has rightly confirmed the order passed by the Assessing Officer, CPC.

6.1 So far as petition filed before the CBDT in respect of delay condonation is concerned, we are of the considered opinion that once the delay condonation is pending before the CBDT, the ld. CIT(A) ought to have waited for the decision of the CBDT, for the reason that, if the CBDT condone the delay, the claim of the assessee has to be considered in accordance with law. Therefore, we set aside the order passed by the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to wait for the decision on the condonation petition filed by the assessee before the CBDT and thereafter pass order in accordance with law.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on 28th October, 2022 at Chennai.

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