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Facts
The assessee, a Cooperative Society, claimed a deduction u/s.80P for AY 2022-23. The return was filed belatedly by 54 days, leading to the invocation of section 80AC by CPC and denial of the deduction.
Held
The Tribunal dismissed grounds 1, 2, and 3 as general. It dismissed ground 4, stating it lacked the power to condone the delay. Ground 5 was allowed for statistical purposes, restoring the issue of deduction to the AO.
Key Issues
Whether the delay in filing the return of income bars the claim of deduction under Section 80P, and if Section 80AC is applicable in such cases.
Sections Cited
143(1), 80P, 80AC, 139(1), 119(2)(b), 80P(2)(a)(i)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal filed by the assessee pertaining to the Assessment Year 2022-23 is directed against the order dated 30.03.2024 passed by Addl/JCIT(A)-1, Hyderabad which in turn is arising out of the Intimation order passed u/s.143(1) of the Act dated 03.04.2023.
When the appeal was called for, none appeared on behalf of the assessee despite due service of notice of hearing. I therefore proceed to dispose of the appeal with the able assistance from the ld. Departmental Representative exparte qua the assessee.
Brief facts of the case are that the assessee is a Cooperative Society registered under the Maharashtra State Cooperative Act. It is engaged in providing credit facilities to its members. For the A.Y. 2022-23, it claimed deduction u/s.80P of the Act at Rs.47,38,337/- in the return of income filed on 31.12.2022. Since the due date of return was 07.11.2022 and the return of the assessee was belated by 54 days, which was not filed within the statutory time limited provided u/s.139(1) of the Act. The CPC while processing the return invoked section 80AC of the Act and declined the deduction claimed u/s.80P of the Act.
Aggrieved assessee preferred appeal before the ld.CIT(A) but failed to succeed. Now the assessee is in appeal before the Tribunal.
Ld. Departmental Representative vehemently argued supporting the orders of the lower authorities.
I have heard the ld. Departmental Representative and perused the record placed before me.
Ground No.1 raised by the assessee is general in nature and need no adjudication. The same is therefore dismissed.
Ground No.2, the claim of the assessee that provisions of section 80AC are directory and not mandatory in nature is not supported with any judicial precedents and therefore Ground No.2 is also dismissed.
Ground No.3 is also general in nature as it is stated that section 80AC of the Act should be construed liberally for the assessee assessee society which is engaged in promoting growth and development of Cooperative Sector, I however fail to find any merit in this ground as it is merely an emotional ground not backed by any fact and judicial precedents. Therefore, Ground No.3 raised by the assessee is also dismissed.
Ground No.4 has been raised requesting this Tribunal to condone the delay of 54 days in filing the return of income. I however note that there is specific section 119(2)(b) of the Act which provides the mechanism through which the assessee can file an application to condone the delay in filing the income-tax return on account of reasonable cause and the Board can pass general or special order authorizing any income-tax authority not below the Joint Commissioner of Commissioner (Appeal) to deal with such application. In absence of any specific power to this Tribunal for condoning the delay in filing the income-tax returns under the Act, I do not find any merit in the Ground No.4 raised by the assessee and the same is dismissed as such.
Ground No.5 is an alternate ground through which it is claimed that the assessee has filed an application u/s.119 for condonation of delay and the same is still pending before the authority and the assessee is awaiting the outcome of the said application. I notice that the assessee being a Cooperative Society and the person who was authorized with the filing of income-tax return was assigned with the duty of ensuring security operations in the Gadchiroli District which is infamous for Naxalite activities during the period when the return of income was to be filed. I therefore deem it proper to restore this claim of deduction u/s.80P(2)(a)(i) of the Act to the file of AO before whom the assessee shall place the details of the outcome of the its application made u/s.119(2)(b) of the Act and in case the assessee succeeds in getting relaxation and delay in filing of the income-tax return is condoned, ld. AO can allow the deduction claimed by the assessee u/s.80P of the Act and decide in accordance with law. Ground No.5 raised by the assessee is allowed for statistical purposes. Needless to mention, the assessee will be afforded reasonable opportunity of hearing.
Ground No.6 is general in nature and needs no adjudication.
In the result, the appeal of the assessee is partly allowed for statistical purposes.
Order pronounced on this 10th day of March, 2025.