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Facts
The assessee, an Urban Co-operative Credit Society, filed its return of income for AY 2018-19 belatedly, claiming deductions under Section 80P. The Assessing Officer (AO) disallowed these deductions. The Commissioner of Income Tax (Appeals) upheld the AO's order.
Held
The Tribunal noted that the delay in filing the return of income had been condoned by the DGIT. Therefore, the Tribunal set aside the order of the CIT(A) and remitted the case back to the AO for fresh assessment.
Key Issues
Whether the assessee is eligible for deduction under Section 80P when the return of income was filed beyond the due date, and if the delay in filing has been condoned.
Sections Cited
80P, 133A, 148, 139(1), 147, 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K, HON’BLE & SHRI S.R. RAGHUNATHA, HON’BLE
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), Chennai dated 16.10.2024 and pertains to assessment year 2018- 19.
The only issue raised by the assessee is rejection of condonation of delay for filing of return of income for assessment :-2-: ITA. No: 3183/Chny/2024 year 2018-19 and thereby disallowance of deductions claimed u/s.80P of the Act.
The brief facts of the case are that the assessee is an Urban Co-operative Credit Society engaged in providing credit facilities to its members. The survey proceedings u/s.133A of the Act was conducted, after obtaining necessary approval the notice u/s.148 was issued to the assessee and in response the assessee filed its return of income for the A.Y.2018-19 on 29.04.2022 declaring nil income after claiming deductions u/s. 80P of the Act. In the scrutiny proceedings the AO found that the assessee had claimed deduction u/s.80P(2)(a)(i) of Rs.4,03,00,429/- and u/s.80P(2)(d) of the Act to the tune of Rs.1,42,67,695/- and disallowed the same stating that the deductions u/s.80P of the Act is eligible to the assessee only when the return of income is filed on or before the due date prescribed u/s.139(1) of the Act and passed an order u/s.147 of the Act dated 10.02.2024. Aggrieved by the order of the AO the assessee preferred an appeal before the Ld. CIT(A).
The Ld. CIT(A) after perusal of submissions of the assessee dismissed the appeal of the assessee by passing an order dated 16.10.2024 without waiting for the orders of the proceedings of the CBDT in respect of the condonation petition filed by the assessee
:-3-: ITA. No: 3183/Chny/2024 u/s.119(2)(b) of the Act. Aggrieved by the order of the Ld. CIT(A) the assessee preferred an appeal before us.
The ld. AR for the assessee stated that the ld. CIT(A) has erred in disallowing the deductions u/s.80P(2)(a)(i) and u/s.80P(2)(d) of the Act for want of delay condonation order u/s.119(2)(b) of the Act. The ld. AR brought to our notice that the assessee has received an order dated 08.01.2025 from the DGIT vide DIN ITBA/COM/F/17/2024-25/1071974519(1), wherein the delay has been condoned for the A.Y.2018-19 in filing return of income to claim the deductions u/s.80P of the Act. In view of the above the ld. AR prayed for deleting the additions made by the AO.
Per contra, the ld. DR relied on the orders of the lower authorities.
We have heard the rival contentions perused the material available on record and gone through the orders of authorities along with the documents filed. Admittedly, the assessee is a credit co- operative society engaged in the business of providing credit facilities to its members and had filed its return of income beyond the due date prescribed u/s.139(1) of the Act. Accordingly, the AO had disallowed the claim of deduction u/s.80P of the Act, which was later confirmed by the ld. CIT(A) for want of order of the DGIT for :-4-: ITA. No: 3183/Chny/2024 condonation of delay in filing the return of income for the A.Y.2018- 19.
We note that assessee had filed an application for condonation of delay in filing the return of income for the A.Y.2018-19 on 27.06.2023, which was considered and allowed u/s.119(2)(b) of the Act by DGIT by passing an order dated 08.01.2025 vide DIN- ITBA/COM/F/17/2024-25/1071974519(1). Therefore, in the present facts and circumstances of the case, we are inclined to set aside the order of ld. CIT(A) and in the interest of justice and fair play, we deem it fit to remit the file back to the AO for fresh assessment denovo, since the delay for filing of return of income filed by the assessee has been condoned and allow the related grounds raised by the assessee.
In the result the appeal of the assessee is partly allowed.