KEEZHKULAM PRIMARY AGRICULTURAL CO-OP CREDIT SOCIETY LIMITED NO 3938,KANYAKUMARI vs. COMMISSIONER OF INCOME TAX, CHENNAI

This is an appeal preferred by the assessee Co-operative Credit Society Ltd., against the order of the Learned Commissioner of Income Tax (Appeals)/Addl/JCIT(A), Faridabad, (hereinafter referred to as “the Ld.CIT(A)”), dated 27.01.2025 for the Assessment Year (hereinafter referred to as "AY”) 2021-22.

The main grievance of the assessee is against the action of the Ld.CIT(A) in not granting deduction u/s.80P(2)(a)(i) of the Income Tax Act, 1961 (hereinafter referred to as "the Act”).

The brief facts brought to our notice are that the assessee is a Primary Agricultural Co-operative Credit Society and its Members are primarily agriculturists. Further it is noted that assessee is registered as a society under the Tamil Nadu Co-operative Societies Act, 1983; and its main source of income was from lending of loan to its members for purchase of seeds, fertilizers and other inputs for the farm. In the year under consideration, the assessee filed its return of income (RoI) after the due date specified u/s.139(1) of the Act. The due date in filing of return for AY 2021-22 was 15.03.2022, whereas the assessee has filed the return only on 13.10.2023, which according to the assessee was due to delay in receiving statutory audit from the State Audit Department, Tamil Nadu. For belated filing of RoI [i.e., not filing ITR within the due date prescribed u/s.139(1) of the Act], the assessee’s claim made in its ITR for deduction u/s.80P(2)(a)(i) of the Act was denied by the CPC by intimation u/s.143(1) of the Act dated 13.12.2024.

Aggrieved by the action of the CPC denying deduction u/s.80P(2)(a)(i) of the Act, the assessee preferred an appeal before the Ld.CIT(A) and simultaneously filed application for condonation of delay in filing of RoI before the Chief Commissioner of Income Tax (CCIT, Madurai) who by order dated 23.02.2024 [for AY 2021-22] was pleased to condone the delay in filing of the return. Despite there being an order of the competent authority condoning the delay in filing of return within the time prescribed u/s.139(1) of the Act, the Ld.CIT(A) is found to have erred in disallowing the claim of the assessee. Therefore, we set aside the impugned order of the Ld.CIT(A) and restore the appeal back to his file with a direction to pass order in the light of condonation order passed by the CCIT, Madurai dated 23.02.2024 for AY 2021-22 after hearing the assessee.

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