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Facts
The assessee, a Co-op. Thrift & Credit Society, filed its return of income belatedly by 3 days. The Ld.CIT(A) disallowed the claim for deduction under Section 80P, amounting to Rs.1,39,34,950/-, due to the non-filing of the return within the due date.
Held
The Tribunal condoned the delay in filing the appeal and set aside the order of the Ld.CIT(A). The Ld.CIT(A) is directed to decide the appeal on merits after the decision of the CCIT on the assessee's condonation application for the belated return filing.
Key Issues
Whether the Ld.CIT(A) can decide the appeal on merits without the outcome of the condonation application for the delayed filing of the return of income.
Sections Cited
80P, 139(1), 80AC
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI MANOJ KUMAR AGGARWAL
आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Public Servants Co-op.
Thrift & Credit Society Ltd., against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 27.08.2024 for the Assessment Year (hereinafter referred to as "AY”) 2018-19.
At the outset, the Ld. Counsel for the assessee submitted that there is a delay of ‘61’ days in filing of this appeal and explained the reason for cause of delay. Having gone through the facts which led to the delay, we find that there was sufficient cause for the cause of delay and hence, we condone the delay of ‘61’ days and proceed to adjudicate the appeal on merits.
The Ld.AR of the assessee submitted that the only grievance of the assessee is against action of the Ld.CIT(A) disallowing the claim u/s.80P of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘) amounting to Rs.1,39,34,950/- for non-filing of return within the due date prescribed u/s.139(1) of the Act and thereby, raised a demand of Rs.68,48,578/-.
In this regard, the assessee brought to our notice that assessee is a Co-op. Thrift & Credit Society which was registered as per Tamil Nadu Co- operative Societies Act, 1983, and had filed its return of income (RoI) on 03.11.2018 [belatedly by three (3) days since CBDT vide order dated 08.10.2018 had extended the regular due date for filing of return from 30.09.2018 to 31.10.2018], because of which, the Ld.CIT(A) taking note of the amendment brought in by section 80AC of the Act, confirmed the action of the lower authorities denying the claim, against which, the assessee is before us.
Before us, the Ld.AR brought to our notice that the assessee has filed condonation application dated 25.12.2024 for belated filing of the return before the competent authority as delegated by the CBDT, i.e., Chief Commissioner of Income Tax (CCIT), Coimbatore, which application is pending before the CCIT, Coimbatore. A copy of condonation application dated 25.12.2024 has been placed before us. Therefore, the plea of the Ld.AR is that the Ld.CIT(A) may be directed to await the decision of the CCIT, Coimbatore, in respect of condonation application filed for condoning the delay of three (3) days in filing of RoI and thereafter decide the appeal on merits.
Having heard both the parties and after perusal of the records, we note that assessee Co-op. Thrift & Credit Society was registered under the Tamil Nadu Co-operative Societies Act, 1983, had filed its RoI belatedly after three (3) days i.e. on 03.11.2018 to the tune of Rs.1,39,34,950/- claiming deduction u/s.80P of the Act, which was denied. On appeal, the Ld.CIT(A) has confirmed the same by passing the impugned order.
Before us, it has been brought to our notice that the assessee has filed condonation application dated 25.12.2024 before the CCIT, Coimbatore, for condoning the delay in filing of RoI. In the light of the same, we set aside the impugned order of the Ld.CIT(A) and direct the Ld.CIT(A) to decide the grounds of appeal of the assessee after the decision is rendered by the CCIT, Coimbatore, on the application filed by the assessee dated 25.12.2024 and thereafter, pass order on merits, in accordance to law after hearing the assessee.
7. The assessee is directed to keep track of the condonation application filed before the CCIT, Coimbatore, and inform the Ld.CIT(A), the outcome of its ibid application and then file relevant documents in support of its claim of deduction u/s.80P of the Act and thereafter, the Ld.CIT(A) to pass order in accordance to law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 04th day of June, 2025, in Chennai.