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Facts
The assessee, an agricultural credit cooperative society, did not file its return of income for AY 2017-18 but reported income of ₹7,84,475/- in its audited financial statements, claiming exemption under Section 80P. The AO added this amount and denied the 80P deduction, which was upheld by the CIT(A), on the grounds that no return of income was filed.
Held
The Tribunal held that for Assessment Year 2017-18, there was no requirement under Section 80AC(ii) or Section 80A(5) of the Income Tax Act to file a return of income to claim deduction under Section 80P. The conditions requiring return filing by the due date for such deductions apply from AY 2018-19 onwards. Therefore, the assessee cannot be denied the deduction, and the addition made by the AO was directed to be deleted.
Key Issues
Whether deduction under Section 80P of the Income Tax Act can be denied to an agricultural credit cooperative society for Assessment Year 2017-18 solely on the ground of non-filing of the return of income.
Sections Cited
80P, 80A(5), 80AC, 139(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM Shri S.M. Surana, AR
This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) Addl/ JCIT(A)-9, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 09.07.2024 for the AY 2017-18.
The only issue raised by the assessee is against the order of ld. CIT (A) confirming the order of ld. AO wherein the addition of ₹7,84,470/- was made.
The facts in brief are that the assessee did not file any return of income during the year whereas, according to the audited profit and loss account and balance sheet reported income of the assessee was ₹7,84,475/-. The assessee is a primarily agricultural credit cooperative society engaged in providing banking facilities to its member and
In the appellate proceedings, the ld. CIT (A) simply affirmed the order of the ld. Assessing Officer.
After hearing the rival contentions and perusing the materials available on record, I find that the ld. AO has denied the deduction u/s 80P of the Act to the assessee on the ground that the assessee has not filed any return of income. I have perused the provisions of Section 80A(5) of the Act which provides that where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading "C.—Deductions in respect of certain incomes", no deduction shall be allowed to him thereunder. Therefore, I note that there is no whisper of deduction u/s 80P of the Act under sub section 5 of Section 80A of the Act. Besides, I have perused the provisions of Section 80AC of the Act which provide that while computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80- IC or section 80-ID or section 80-IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.—Deductions in respect of certain incomes", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 24.04.2025.