R 249 KULITHALAI CO-OP PARD BANK LIMITED,KARUR vs. INCOME TAX OFFICER, KARUR

The brief facts of the case are that, the assessee is a co-operative credit society under the Tamilnadu Cooperative societies Act 1983 and has filed its original return of Income for the A.Y. 2022-23 u/s.139(4) of the Act belatedly on 31/12/2022

The return was processed by the CPC, Bengaluru U/s.143(1) of the Act on 04/04/2023 denying the claim of deduction U/s.80P of the Act of Rs. 18,19,620/- for the reason that the assessee has not filed return of income within the due date as per section 139(1) of the Act.

Aggrieved by the action of the CPC, Bengaluru the assessee preferred an appeal on 19.08.2024 before the Ld.CIT(A), with a delay of 472 days. The ld.CIT(A) considering the grounds of appeal, submissions of the assessee and the petition for condonation of delay in filing the return of income before the ld.PCIT, Madurai, dismissed the appeal by holding as under:

Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us.

The assessee had submitted in its appeal memorandum that the Ld.CIT(A) has erred in dismissing the appeal without considering the facts and circumstances of the assessee. The assessee also had stated that assessee’s application for condonation of delay in filing the return of Income before the ld.PCIT, is pending for disposal and the Ld.CIT(A) has dismissed the appeal in hurried manner. The assessee had stated that the they could not file the return of in come within the prescribed time limit U/s.139(1) i.e. 07/11/2022, since the accounts were audited and audit report was issued only on 25/09/2023 by the Assistant Director Co-operative Societies, Government of Tamilnadu and reported on 11/11/2023. However, the society took steps to file the return of income and filed the return of Income on 31/12/2022 on finalization of accounts.

Per contra, the Ld.DR stated that the return was processed by the CPC, Bengaluru U/s.143(1) of the Act on 03/04/2023 denying the claim of exemption U/s.80P of the Act for the reason that the assessee had not filed the return of income within the due date as prescribed U/s.139(1) of the Act. The same has been rightly confirmed by the Ld.CIT(A), as the assessee has claimed the deduction U/s.80P without filing the return of income within the due date U/s.139(1) of the Act, which is a precondition specified in Section 80AC of the Act. Hence, prayed before us to dismiss the appeal of the assessee.

We have heard the rival submissions and carefully perused the intimation issued under section 143(1) of the Act, the order passed by the Ld.CIT(A) and the submissions placed on record by the assessee. The assessee, a co-operative society, filed its return of income for the Assessment Year 2022–23 belatedly on 31.12.2022, as against the extended due date prescribed under section 139(1) of the Act, i.e., 07.11.2022, and claimed a deduction under Chapter VIA, specifically u/s.80P of the Act, amounting to Rs.18,19,620/-. It is further noted that the assessee had filed a petition seeking condonation of delay in filing the return of income under section 119 of the Act before the ld.PCIT, Madurai.

It is observed that the CPC, Bengaluru, while processing the return u/s.143(1) of the Act, made an adjustment by denying the deduction claimed u/s.80P of the Act amounting to Rs.18,19,620/- on the ground that the return of income was filed beyond the due date prescribed u/s.139(1) of the Act. The said action of the CPC, Bengaluru, was upheld by the Ld.CIT(A) without awaiting the outcome of the condonation petition pending before the Ld.PCIT, Madurai, filed by the assessee in respect of the delay in filing the return of income for the Assessment Year 2022–23. Considering the facts and circumstances of the case, we are of the view that the impugned order of the Ld.CIT(A) deserves to be set aside, and the matter is restored to the file of the Juri ictional Assessing Officer (JAO) to decide the issue afresh in accordance with the decision of the Ld.PCIT, Madurai, on the condonation petition filed by the assessee.

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

अपीलाथ&/Appellant 2. '(यथ&/Respondent 3.आयकर आयु3त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 1वभागीय 'तन ध/DR 5. गाड$ फाईल/GF