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Facts
The assessee deposited a significant sum in their bank account but failed to file the income tax return by the due date. The Assessing Officer (AO) reopened the assessment and disallowed a deduction claimed under Section 80P(2)(a)(i) on the grounds of late filing. The CIT(A) upheld this disallowance.
Held
The Tribunal observed that the assessee had filed a condonation petition for the delay in filing the return, which was pending. Therefore, the Tribunal decided to remit the matter back to the CIT(A) for adjudication after the order on the condonation petition is received.
Key Issues
Whether the disallowance of deduction due to late filing of return is justified when a condonation petition for the delay is pending.
Sections Cited
147, 144B, 148, 80P(2)(a)(i), 139(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 23.01.2024 in the matter of assessment framed by the Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 06.03.2024.
When the appeal was taken up for hearing, none appeared on behalf of the assessee. Accordingly, the hearing was proceeded with the able assistance of Ld. D.R, Ms. Gouthami Manivasagam, JCIT.
The assessee had deposited cash of Rs. 62,45,958/- in the bank account maintained with the Coimbatore Dist. Central Co-op. Bank Anaimalai, but did not file return of income. The A.O therefore, has reopened the assessment by issuing notice u/s. 148 of the Act. In response to notice, the assessee filed return of income at Nil by claiming deduction u/s.80P(2)(a)(i) of the Act of Rs. 33,78,271/-. The A.O did not allow the deduction u/s. 80P(2)(a)(i) of the Act as the assessee has not filed return within due date prescribed u/s. 139(1) of the Act. Aggrieved, the assessee filed an appeal before Ld. CIT(A).
On appeal, the Ld. CIT(A) has confirmed disallowance u/s. 80P(2)(a)(i) of the Act as the assessee has not filed return of income within due date prescribed u/s. 139(1) of the Act.
The Ld. Authorized Representative (A.R) of the assessee before us has submitted that the assessee has filed condonation petition before CCIT, which is pending for disposal and therefore, Ld. CIT(A) was not justified to dismiss the appeal without awaiting the order of 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 materials available on record. The assessee has explained that the return was filed after the due date due to delay in receiving the cooperative audit report. The delay in filing the income tax return was primarily attributed to the postponement in complying with the audit requirements under Section 80 of the Tamil Nadu Co-Operative Society Act, 1983, and the assessee has made an application for condonation of delay before the CCIT, which is pending. The Ld CIT(A) has dismissed the appeal for claim of deduction u/s 80P(2)(a)(i) of the Act, for the reason that assessee has not filled return within the prescribed due date, though the condonation petition to condone the delay in filling return was pending with the CCIT. In our considered opinion, we deem it fit to remit the matter back to the Ld. CIT(A) for denovo adjudication after receipt of order of the CCIT for condonation of delay in filing of return.
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.
Order pronounced on 19th March, 2025.