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Facts
The assessee, a Cooperative Society, filed its return of income for Assessment Year 2022-23 belatedly on 20.12.2022, after the extended due date of 07.11.2022. The assessee claimed a deduction under Section 80P of the Act. The CPC, under Section 143(1)(a) and in conjunction with Section 80AC, disallowed this deduction due to the late filing of the return.
Held
The Tribunal held that since the return was filed beyond the due date specified under Section 139(1) of the Act, Section 80AC was rightly invoked to disallow the deduction claimed under Chapter VIA. It further noted that any condonation for delay in filing the return would require an application under Section 119(2)(b) of the Act, which was not filed.
Key Issues
Whether the deduction under Section 80P can be disallowed solely on account of filing the return of income beyond the due date prescribed under Section 139(1), and whether Section 80AC is rightly invoked in such a scenario.
Sections Cited
250, 143(1), 139(1), 80AC, 80P, 80P(2)(a)(i), 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
This appeal filed at the instance of assessee pertaining to the Assessment Year 2022-23 is directed against the order dated 11.03.2024 of ADDL/JCIT(A)-2, Coimbatore passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Intimation Order dated 26.10.2023 passed u/s.143(1) of the Act.]
Registry has informed that there is delay of 236 days in filing the appeal before the Tribunal. Application for condonation of delay has been filed stating as follows:
“On 15.05.2024 I received the order of Commissioner (Appeals) Faceless, in my case for assessment year 2022-2023. Being Society we called meeting of board of directors, and decided to prefer the appeal. We further notice as follows : From the above chart, we notice sufficient time for opportunity of being heard is not given to us. So Matter is discussed in the 2-3 meeting of Bod and then we decided to prefer the appeal in ITAT. On Being aggrieved by the said order I requested my auditors Rameshwar Laxman Nehere Partner of M/s C A N J and Company, Chartered Accountants, to prefer an appeal to the Hon'ble Appellate Tribunal. They undertook to do the needful soon after the rush of work of filing returns of income by 31.12.2024 was over. My affidavit detailing the aforesaid facts and These may kindly be placed before the Hon'ble Appellate Tribunal for condonation of the delay in submission of the appeal.”
After hearing ld. Departmental Representative and considering the condonation application filed by the assessee stating the reasons which led to delay and also placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107) I find that due to ‘reasonable cause’ assessee failed to file the appeal within the time limit specified under the Act. I therefore condone the delay of 236 days in filing the appeal and admit the appeal for adjudication.
When the appeal called for, none appeared on behalf of the assessee despite due service of notice of hearing. In the past also, assessee failed to appear on two occasions. I therefore proceed to adjudicate the appeal with the assistance of ld. Departmental Representative and available material on record.
Ld. Departmental Representative vehemently argued supporting the order of ld.CIT(A). He stated that the assessee has not furnished the return of income within the statutory time limit provided u/s.139(1) of the Act and therefore as per section 80AC of the Act assessee cannot claim deduction u/s.80P(2)(a)(i) of the Act.
I have heard the ld. Departmental Representative and perused the record placed before me. I observe that the assessee is a Cooperative Society and due date of filing the return of income for A.Y. 2022-23 was 31.10.2022 which was further extended to 07.11.2022. Assessee has filed the return of income on 20.12.2022 and admittedly it is a belated return not filed u/s.139(1) of the Act. In this return, assessee has claimed deduction u/s.80P of the Act at Rs.30,00,457/-. On going through the provisions of section 80AC of the Act with the conjoint reading of section 143(1)(a) of the Act I note that for the year under appeal CPC is well within its jurisdiction to make prima-facie adjustment disallowing the deduction claimed under Chapter VIA of the Act if the return is furnished beyond the due date specified u/s.139(1) of the Act. Now under the given situation if the delay in filing of the return was for ‘reasonable cause’ then for such condonation of delay assessee has to approach the authorities mentioned in section 119(2)(b) of the Act. In the instant case, no such application for condonation of delay seems to have been filed as there is no such reference in the impugned order. Under these given facts and circumstances, section 80AC of the Act is rightly invoked as the return of income has not been filed within the time limit provided u/s.139(1) of the Act. Therefore, assessee’s claim of deduction u/s.80P of the Act has rightly been denied by the CPC. Thus, no interference is called for in the finding of ld.CIT(A). Grounds of appeal raised by the assessee are dismissed.
In the result, appeal of the assessee is dismissed.
Order pronounced on this 30th day of June, 2025.