PANCHASHIL MAJOOR SAHAKARI SOCIETY LTD.,JALGAON vs. ITO, WARD 1(4), JALGAON, JALGAON

Registry has informed that the appeals of the two assessee(s) before this Tribunal are time barred by limitation by 335 days and 182 days respectively. Assessee(s) have filed applications for and 1460/PUN/2025 Panchashil Majoor Sahakari Society Ltd. Navrang Majoor Sahakari Society Ltd. condonation of delay explaining the reasons which led to filing of appeals belatedly. After hearing both the sides and perusing the averments made in the condonation applications, I am satisfied that due to ‘reasonable cause’ assessees failed to file the appeals within the stipulated time limit. I therefore condone the delay of 335 days and 182 days in filing the appeals by the assessee(s) in light of Judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and proceed to adjudicate the issues raised in the instant appeals.

At the outset, Ld. Counsel for the assessee referring to both the appeals stated that the CPC has disallowed the deduction claimed by the assessees u/s.80P of the Act for A.Y. 2018-19 which is not in accordance with law because the powers have been given to the CPC by way of amendment brought in from 01.04.2021 subsequent to which CPC can deny deduction u/s.80P of the Act if the return of income is not filed within the statutory time limit provided u/s.139(1) of the Act. In support, Ld. counsel for the assessee placed reliance on the following decision of this Tribunal :

Ld. Departmental Representative failed to controvert the submissions advanced by ld. Counsel for the assessee.

I have heard the rival contentions and perused the record placed before me. I observe that the assessee(s) namely and 1460/PUN/2025 Panchashil Majoor Sahakari Society Ltd. Navrang Majoor Sahakari Society Ltd. Panchashil Majoor Sahakari Society Ltd. and Navrang Majoor Sahakari Society Ltd. have furnished their return of income for A.Y. 2018-19 on 04.12.2018 which is after the due date of 30.09.2018 claiming deduction u/s.80P of the Act at Rs.11,31,610/- and Rs.12,92,261/- respectively.

CPC while processing the returns for both the assessee(s) has denied the deduction u/s.80P of the Act by invoking section 80AC of the Act which provides that for claiming deduction u/s.80P of the Act, the return is to be filed before the due date prescribed u/s.139(1) of the Act. However, the issue is no longer res integra by virtue of catena of decisions rendered by this Tribunal including the cases relied upon by the ld. Counsel for the assessee wherein it has been held that prior to amendment brought in by Finance Act, 2021 in clause (v) of section 143(1)(a) of the Act, CPC had no powers u/s.143(1)(a)(v) of the act to deny the deduction u/s 80P of the Act even if the return of income is not filed within the statutory time limit provided u/s.139(1) the Act. For the sake of brevity, I proceed to extract the finding given by this Tribunal in the case of Finolex Industries Ltd. Employees Credit Society Ltd. (supra) which reads as follows :

Respectfully following the above decision and following the rule of consistency, I hold that CPC erred in disallowing the deduction u/s.80P of the Act claimed by both the assessee’s under consideration for A.Y. 2018-19. Impugned orders for the appeals under consideration are set-aside and Jurisdictional Assessing Officer is directed to allow impugned deduction u/s.80P of the Act. Grounds of appeal raised by both the assessee (s) are allowed

In the result, both the appeals of the assessee(s) are allowed.