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Facts
The assessee, a cooperative society, initially failed to file its return of income for AY 2018-19 and deposited substantial cash amounts. Subsequently, proceedings under section 148A and 148 were initiated, leading to a return filing and denial of deduction u/s 80P by the AO. The FAA confirmed the AO's order.
Held
The Tribunal condoned the delay in filing the appeal and noted that the assessee's application for condonation of delay in filing the return of income u/s 139(1) was pending before the Competent Authority. Therefore, the matter was restored to the AO to await the decision on the condonation petition.
Key Issues
Whether the case should be restored to the AO pending a decision on the condonation of delay in filing the return of income before the Competent Authority.
Sections Cited
250, 148A, 148, 139, 80P, 147, 144B, 119(2)(b)
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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI JAGADISH
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 28.03.2025, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.
2. There is a delay of 17 days in filing the appeal. The Secretary of the assessee’s society has filed affidavit for condonation of delay stating therein the reasons for belated filing of this appeal. On perusal of the same, we find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, we condone the delay in filing the appeal and proceed to dispose off the appeal on merits.
Brief facts of the case are as follows: The assessee is Co- operative society registered under The Tamilnadu Cooperative Societies Act, 1983. Initially, the assessee society has not filed its return of income for assessment year 2018-19. During the year under consideration, the assessee society had deposited cash of Rs.1,91,03,580/- and made time deposit of Rs.40,00,000/-. Since the assessee had not filed its return of income, order under clause (d) of section 148A of the Act was passed on 18.04.2022. Accordingly, the case was reopened for scrutiny assessment by issuing notice u/s.148 of the Act on 18.04.2022. In response to notice u/s.148 of the Act, assessee filed its return of income on 18.05.2022. Since the assessee has not filed its return of income u/s.139 of the Act, the AO denied the claim of deduction u/s.80P of the Act.
5. Aggrieved by the assessment completed u/s.147 r.w.s. 144B of the Act, the assessee filed appeal before the First Appellate Authority (‘FAA’). After considering the submissions of the assessee, the FAA confirmed the order of the AO.
Aggrieved by the order of the FAA, the assessee has filed the present appeal before the Tribunal. The Ld.AR submitted that the assessee’s representation dated 03.06.2023 to CBDT praying for condonation of delay in filing return of income u/s.139(1) of the Act is pending u/s.119(2)(b) of the Act. It was submitted that since the condonation petition u/s. 119(2)(b) of the Act before the competent authority has direct bearing, the matter may be restored to the files of the AO to await the decision of the Competent Authority on the condonation application filed in terms of section 119(2)(b) of the Act.
The Ld.DR supported the order of the FAA.
We have heard rival submissions and perused the material on record. The assessee had approached the Competent Authority u/s.119(2)(b) of the Act for condonation of delay in filing return of income u/s.139(1) of the Act. The assessee’s application for condonation of delay u/s.119(2)(b) of the Act has a direct bearing as regards the claim of deduction u/s.80P of the Act. In event the competent authority condones the delay in filing the return of income filed by the assessee necessarily the claim of deduction u/s.80P of the Act has to be considered on merits by the concerned AO. Since the assessee’s application of condonation of delay in filing the return of income is pending consideration before the Competent Authority, we deem it appropriate to restore the case to the files of the AO. The AO is directed to pass afresh order after the Competent Authority has passed the order regarding the assessee’s petition for condonation of delay in filing the return of income. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 26th August, 2025 at Chennai.