THE PNB EMPLOYEES CO-OP. THRIFT & CREDIT SOCIETY LTD.,CHENNAI vs. ITO, NCW-12(1), CHENNAI

This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Pune, dated 29.09.2024 and pertains to assessment year 2023-24.

The assessee is a cooperative society registered as a Multi-State Cooperative Society on 15.11.1993. The assessee’s main activity Page 1 of 4 :-2-: ITA. No: 3055/Chny/2024 is lending small scale loans to its members and eligible for deduction u/s. 80P of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). For the assessment year 2023-24, the assessee filed its return of income on 18.11.2023 which is beyond the due date prescribed u/s. 139(1) of the Act, declaring a total income as Nil, after claiming a deduction u/s.80P of the Act to the tune of Rs.29,81,297/-. Since, the assessee had filed the belated return of income on 18.11.2023 against the due date on 31.10.2023, the CPC, Bangalore processed the return of income and issued intimation dated 14.02.2024 by denying the deduction claimed u/s. 80P of the Act 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. 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 29.09.2024 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 :-3-: ITA. No: 3055/Chny/2024 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.PCIT-8, Chennai on 17.02.2025 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.

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 18.11.2023 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 29.09.2024. Before us, the ld.AR :-4-: ITA. No: 3055/Chny/2024 submitted the application dated 17.02.2025 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.