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Facts
The assessee, a primary agricultural cooperative bank, filed its return of income belatedly for AY 2019-20. The CPC denied deduction u/s.80P for not filing the return within the due date as per Section 80AC. The CIT(A) upheld this order.
Held
The Tribunal condoned the delay in filing the return, noting a reasonable cause. The order of the CIT(A) was set aside and the case was remitted to the Assessing Officer.
Key Issues
Whether the assessee is eligible for deduction u/s.80P when the return is filed belatedly, despite the provision of Section 80AC. Whether the delay in filing the return can be condoned.
Sections Cited
80P, 139(1), 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI S.S. VISWANETHRA RAVI, HON’BLE & SHRI S. R. RAGHUNATHA, HON’BLE
O R D E R
PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Gurugram, dated 28.06.2024 and pertains to assessment year 2023-24.
At the outset, we find that there is a delay of 75 days in appeal filed by the assessee, for which petition for condonation of delay along with reasons for delay has been filed. After considering the petition :-2-: ITA. No: 2899/Chny/2024 filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication.
The assessee is a primary agricultural cooperative bank ltd with the main activity is lending loans only to its members and trading in agricultural related products for the members and the income earned is eligible for deduction u/s.80P of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). For the assessment year 2019- 20, the assessee filed its return of income on 31.12.2019 which is beyond the due date prescribed u/s. 139(1) of the Act ( due date 30.10.2019), declaring a total income as Nil, after claiming a deduction u/s.80P of the Act to the tune of Rs.2,16,64,368/-. Since, the assessee had filed the belated return of income on 31.12.2019 against the due date on 31.10.2019, the CPC, Bangalore processed the return of income and issued intimation dated 27.05.2020 by denying the deduction claimed u/s. 80P of the Act by raising a demand of Rs.91,64,492/-, stating that the claim of deduction is eligible as per section 80AC of the Act when the return is filed on or before the prescribed due date u/s.139(1) of the Act.
:-3-: ITA. No: 2899/Chny/2024 Aggrieved by the order of the CPC, Bangalore the assessee preferred an appeal before the ld.CIT(A).
After considering the replies and case laws relied by the assessee, the ld.CIT(A) dismissed the appeal of the assessee in his order dated 28.06.2024, stating that the assessee is squarely covered by the provisions of section 80AC of the Act, since the return of income has not been filed before the due date u/s.139(1) and the Assessing Officer/CPC has power to disallow the impugned deduction u/s.80P of the Act and hence confirmed the order of the CPC, Bangalore. Aggrieved by the order of the ld.CIT(A), the assessee is before us.
The ld.AR brought to our notice that the assessee has filed an application for condonation of delay in filing the return of income by the assessee has been filed before the ld.CCIT-1, Chennai on 25.02.2025 by explaining the reasons for delay in filing the return. The ld.AR stated that they are confident of receiving a favourable order from the ld.PCIT by condoning the delay for filing the return of income and hence, prayed for remitting the file back to Assessing Officer for considering the assessment based on the result of the condonation petition.
:-4-: ITA. No: 2899/Chny/2024
Per contra, the ld.DR stated that there is no error in the order of the ld.CIT(A) and hence, prayed for confirming the same.
We have heard both the parties, perused materials available on record and gone through orders of the authorities below. Admittedly, the assessee is a cooperative society eligible for claiming deduction u/s. 80P of the Act. However, the assessee has filed return of income for the assessment year 2023-24 belatedly on 31.12.2019 and hence the CPC, Bangalore has denied the deduction claimed u/s.80P of the Act as per the conditions stipulated u/s.80AC of the Act. The same has been confirmed by the order of the ld.CIT(A) dated 28.06.2024. Before us, the ld.AR submitted the application dated 25.02.2025 filed with the ld.PCIT- 8, Chennai for condonation of delay in filing the return of income beyond the due date prescribed u/s.139(1) of the Act to get the benefit of deduction u/s.80P of the Act. In view of the above, we are setting aside the order of the ld.CIT(A) and remit the file to the Assessing Officer with a direction to decide the issue in accordance with the result of condonation application filed by the assessee. In case the delay in filing the return of income is condoned by the ld.PCIT the assessee will be eligible to claim deduction u/s.80P of the Act and accordingly the same shall be allowed.
:-5-: ITA. No: 2899/Chny/2024
In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the court on 7th , March, 2025 at Chennai.