K 1305 VELAPPANAICKANVALSU PRIMARY AGRICULTURAL CO-OP CREDIT SOCIETY LIMITED,TIRUPUR vs. THE INCOME TAX OFFICER, WARD 1(4) TIRUPUR, TIRUPUR

The only effective ground of appeal in this appeal of assessee is against the order of Ld. CIT(A) in confirming the disallowance of Rs.16,80,575/- claimed u/s. 80P of the Act.

The assessee is a Primary Agricultural Co-operative Society, incorporated under the Tamilnadu Co-operative Societies Act, 1983.

The assessee-society had deposited cash of Rs.1,41,94,250/- in its bank account maintained with the Erode Dist. Central Co-op. Bank, but did not file return of income within the prescribed time. Therefore, the A.O has reopened the assessment by issuing notice u/s. 148 of the Act. In response to notice, the assessee filed its return of income at Nil by claiming deduction u/s.80P of the Act of Rs.16,80,575/-. The A.O disallowed the claim u/s. 80P of the Act on the ground that the return was not filed within the due date prescribed u/s. 139(1) of the Act. Aggrieved by the disallowance, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) has confirmed the disallowance, observing that since the return was not filed within the due date u/s. 139(1) of the Act, the claim u/s. 80P of the Act could not be entertained. The Ld. CIT(A) also noted that condonation of delay is within the purview of the CCIT and once the delay is condoned by the CCIT, the A.O shall make necessary compliance.

Before us, the Learned Authorized Representative (AR) submitted that the assessee has already filed a petition u/s. 119(2)(b) of the Act before the CCIT, Coimbatore, seeking condonation of delay in filing the return of income. The said petition is currently pending. It was submitted that the Ld. CIT(A) proceeded to decide the matter without considering the pendency of the condonation petition.

Accordingly, it was requested that the order of the Ld. CIT(A) be set aside and the matter be restored for fresh consideration after the decision of the CCIT.

The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.

We have heard the rival submissions and perused the material available on record. The assessee has explained that the delay in filing the return was primarily due to the delayed receipt of the co-operative audit report, which is a mandatory requirement u/s. 80 of the Tamil Nadu Co-operative Societies Act, 1983. The assessee has also filed a petition before the CCIT, Coimbatore, seeking condonation of delay, which is still pending. The Ld. CIT(A) dismissed the appeal on the ground that the return was not filed within the prescribed due date, without considering the pendency of the condonation petition. In our considered opinion, the matter requires re-adjudication by the Ld. CIT(A) after the decision of the CCIT on the condonation petition. Accordingly, we deem it appropriate to remit the matter back to the file of the Ld. CIT(A) for denovo adjudication after the outcome of the condonation petition filed before the CCIT. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

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