DD122 HARUR & PR PATTI TK GHSS &GHS EMPLOYEES CO-OP. THRIFT & CREDIT SOCIETY,DHARMAPURI vs. THE INCOME TAX OFFICER, WARD-1, , DHARMAPURI

This appeal by assessee is arising out of the order of the Additional/Joint Commissioner of Income Tax (Appeals)-1, Office of the Commissioner of Income Tax (Appeal), Chandigarh, in Order No.ITBA/APL/S/250/2024-25/1074396763(1), dated 12.03.2025. The assessment was framed by the AO, CPC, Bengaluru, for the assessment (AY 2022-23) DD 122 Harur & PR Patti TK GHSS & GHS Employees Co-op. Thrift & Credit Society year 2022-2023, u/s. 143(1) of the Income Tax Act, 1961 (in short ‘’the Act’) vide order dated 13.12.2024.

The grounds of appeal raised by the assessee are reproduced as under:

On the facts and circumstances of the case the first appellate authority is not justified in not following the guidelines issued by CBDT in circular no.13/2023 dated 26th July 2023 wherein it has been held that if delay occurred due to getting the accounts audited under the respective State Laws, the same could be taken as a valid reason for condoning the delay.

Brief facts of the case are that the Assessee filed its return of income on 20.10.2023 declaring total income at Rs. NIL and claimed deduction u/s 80P of the Act to an extent of Rs.96,84,770/-. The said return dated 20.10.2023 was processed u/s 143(1) on 13.12.2024 determining total income at Rs.96,84,770/-. In the said intimation order u/s 143(1) dated 13.12.2024 the CPC Bengaluru made disallowance of (AY 2022-23) DD 122 Harur & PR Patti TK GHSS & GHS Employees Co-op. Thrift & Credit Society deduction u/s 80P on the ground that the return was not filed u/s 139(1) of the Act.

By filing copy of the application under section 119(2) of the Act, the ld. Counsel for the assessee has submitted that the assessee has filed a condonation petition 13.07.2025 before the CBDT under section 119(2) of the Act to condone the delay in filing the return of income u/s 139(1).

We have heard the rival submissions, perused the materials available on record and gone through paper book, the orders of authorities below. In this case, since the return of income for the assessment year 2021-22 was not filed u/s 139(1) of the Act, the AO CPC, Bengaluru disallowed the claim of deduction under section 80P of the Act and the ld. CIT(A) confirmed the disallowance made under section 80P of the Act by the Assessing Officer.

Before the Tribunal, the ld. Counsel for the assessee has placed before us a copy of Application dated 13.07.2025 (which is endorsed by (AY 2022-23) DD 122 Harur & PR Patti TK GHSS & GHS Employees Co-op. Thrift & Credit Society the counsel for the assessee) and argued that the assessee has filed an Application dated 13.07.2025 before the Chief Commissioner of Income Tax, for condonation of delay in filing the return u/s 139(1) of the Act hence, ld. CIT(A) should wait for the outcome of the Application dated 13.07.2025. In view of the fact that the assessee has filed an application for condonation of delay before the Chief Commissioner of Income Tax, Coimbatore citing Circular No.13/2023 dated 26.07.2023 and section 119(2)(b) of the Act, 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 Chief Commissioner of Income Tax, Coimbatore and on receipt of the order, pass order in accordance with law.

In the result, the appeal filed by the assessee in ITA 1333/CHNY/2025 for assessment year 2022-2023 is allowed for statistical purposes.