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Facts
The assessee, a Primary Agricultural Credit Co-operative Society, filed its return declaring 'Nil' income. However, the return was processed at Rs.17,33,530/-. The audit report was completed beyond the due date, leading to a condonation petition for the delay in filing the return for claiming deduction u/s 80P.
Held
The Tribunal held that the CIT(A) should have waited for the outcome of the condonation application. Since the condonation petition was allowed by the CCIT, the appeal was set aside and remanded back to the CIT(A) to deal with the claim u/s 80P.
Key Issues
Whether the delay in filing the return of income for claiming deduction u/s 80P of the Act should be condoned, and if so, how the claim should be adjudicated.
Sections Cited
143(1), 139(1), 119(2)(b), 80P
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE S.R. RAGHUNATHA
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member): This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT(A)-1, Lucknow [CIT(A)] dated 27.02.2025 for Assessment Year 2021-22.
Brief facts of the case are that the assessee filed its return of income on 13.10.2023 declaring total income at Rs.Nil. The return was income at Rs.17,33,530/-. The ld.CIT(A) upheld the order of the CPC, Bengaluru.
Now assessee is in further appeal before us.
Before us, the Ld. counsel submitted that the assessee is a Primary Agricultural Credit Co-operative Society (PACCS). For AY 2021-22 the audit report was completed beyond the due date u/s 139(1) of the Act, hence assessee filed a condonation petition u/s 119(2)(b) of the Act before the Chief Commissioner of Income Tax [‘CCIT’ in short], Chennai-1 who passed order dated 05.03.2025 who condoned the delay in filing return of income for the purpose of claim of deduction u/s 80P of the Act (para 3.4 of CCIT order]. However, in the meanwhile the CPC has passed the order u/s 143(1) of the Act on 13.12.2024 despite pending condonation petition u/s 119(2)(b). The ld.
counsel prayed that in the light of the order of the Ld. CCIT dated 05.03.2025, the appeal may be set aside to the Ld. CIT(A) to re-look the issue of claim u/s 80P of the Act.
The Ld. DR has not objected to the contentions of the ld. counsel.
G770 Mettupalayam PACCS Ltd. :- 3 -: 5. We have heard the both parties. We are of the considered view that the Ld. CIT(A) should have waited for the outcome of the condonation application filed before the appropriate authority for the delayed return of income. However, we find that condonation petition filed u/s 119(2)(b) of the Act before the Chief Commissioner of Income Tax [‘CCIT’ in short], Chennai-1 has been allowed by the Ld. CCIT vide order dated 05.03.2025. The Ld. CCIT condoned the delay in filing return of income for the purpose of claim of deduction u/s 80P of the Act. Hence, we set aside and remand back the appeal to the file of the Ld. CIT(A) to deal with the claim of the assessee u/s 80P of the Act as per law.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 10th day of June, 2025 at Chennai.