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Facts
The assessee, a Primary Agricultural Co-operative Credit Society, failed to file its return of income within the due date prescribed under Section 139(1) of the Income Tax Act for AY 2018-19. Consequently, the Assessing Officer (AO) denied the deduction claimed under Section 80P. The CIT(A) upheld the AO's order.
Held
The Tribunal noted that the delay in filing the return of income was subsequently condoned by the CCIT. Therefore, the Tribunal deemed it appropriate to restore the matter to the AO to examine and grant the deduction under Section 80P in accordance with law.
Key Issues
Whether the deduction under Section 80P can be allowed when the return of income was filed beyond the due date, but the delay was subsequently condoned.
Sections Cited
139(1), 80P, 250
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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against Addl/Joint Commissioner of Income Tax(A)-1, Nashik, order dated 30.12.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017- 18.
Brief facts of the case are as follows:-
The assessee is a Primary Agricultural Co-operative Credit Society formed under Tamil Nadu Co-operative Societies Act, 1983. The assessee has not filed return of income within the prescribed due date u/s.139(1) of the Act for the impugned assessment year. During the course of assessment proceedings, the assessee claimed entire income earned from its business activity as deduction u/s.80P. However, the AO denied claim of deduction u/s.80P of the Act for the reason that assessee did not file return of income within the due date prescribed u/s.139(1) of the Act.
Aggrieved by the order of assessment, the assessee preferred an appeal before First Appellate Authority. However, the CIT(A) has confirmed the order of the AO.
Aggrieved by the order of CIT(A), the assessee has filed present appeal before the Tribunal. The learned AR for the assessee furnished a copy of order passed by CCIT., Chennai-1 dated 23.08.2024 which is placed at page 8 of the paper book. It is claimed by the learned AR that since delay in filing of return of income of the assessee has been condoned by the CCIT, Chennai-1 vide order dated 23.08.2024, the matter may be restored to the AO to grant deduction claimed u/s.80P of the Act.
The ld.DR supported the orders of CIT(A).
6. We have heard rival submissions and perused the material on record. The AO has denied deduction claimed by the assessee u/s.80P for the reason that assessee society did not file return of income within the due date prescribed u/s.139(1) of the Act. It was claimed by the assessee that audit report of Co-operative Department of Tamilnadu Government was completed only on 14.03.2019 and thus, there was delay in filing return of income. The learned AR has now filed copy of order of the CCIT, Chennai-1 dated 23.08.2024 condoning the delay in filing of return of income for assessment year 2018-19. Therefore, we deem it appropriate to restore the matter back to the files of AO. The AO is directed to examine the same and grant deduction u/s.80P in accordance with law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 18th of March, 2025.