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Facts
The assessee, a co-operative society, did not file an original return for AY 2019-20. The AO initiated reassessment under Section 148 based on cash deposits, and after the assessee filed a belated Nil return, completed assessment denying Section 80P deduction, citing late filing as per Section 139(1) and Section 80AC. The CIT(A) confirmed the AO's order, leading to these appeals before the Tribunal.
Held
For ITA No. 721/Coch/2025, the matter was remanded to the CIT(A) for de novo adjudication as all grounds, including the validity of the Section 148A notice, were not considered. For ITA No. 727/Coch/2025, the matter was remanded to the AO for fresh adjudication, specifically directing consideration of the PCIT's order condoning the delay in filing the return under Section 119(2)(b), which impacts the Section 80P claim.
Key Issues
Whether the assessment order and denial of Section 80P deduction are valid when the return was filed belatedly but the delay was subsequently condoned by the PCIT, and whether all grounds of appeal were properly adjudicated by the CIT(A).
Sections Cited
13(1), 148, 148A, 147, 144B, 80P, 139(1), 80AC, 119(2)(b)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH
BEFORE SHRI INTURI RAMA RAO, AM ITA Nos. 721 & 727/Coch/2025 Assessment Year: 2019-20 Thrissur Vanitha Co-op. Society Ltd. .......... Appellant Thiruvambady P.O., Punkunnam 680022 [PAN: AADAT8842M] vs. The Income Tax Officer, WD-2(1), Thrissur .......... Respondent Assessee by: Shri Varghese John, CA Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 04.11.2025 Date of Pronouncement: 20.11.2025 O R D E R These appeals filed by the assessee are directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 23.07.2025 for Assessment Year (AY) 2019-20.
Since different issues are involved in these appeals, we shall take up the appeals in seriatim.
ITA No. 721/Coch/2025 – AY: 2019-20 3. Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is engaged in the business of accepting deposits from members and providing credit facilities to members. No return of income for AY
2 ITA No. 721/Coch/2025 Thrissur Vanitha Co-op. Society Ltd. 2019-20 was filed by the appellant under the provisions of section 13((1) of the Income Tax Act, 1961 (the Act). Based on the information that the appellant made cash deposits in the bank account during the previous year relevant of AY 2019-20 the Assessment Unit, Income Department (hereinafter called "the AO") issued a notice u/s. 148 of the Act on 28.03.2024 after complying with all the procedures prescribed u/s. 148A of the Act. In response to the notice u/s. 148, the appellant filed return of income on 24.04.2023 declaring Nil income. Against the said return of income, the assessment was completed by the AO vide order dated 18.03.2024 passed u/s. 147 r.w.s. 144B of the Act at total income of Rs. 8,33,267/-. While doing so, the AO denied the claim for deduction u/s. 80P of the Act.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO by holding that the appellant had not filed the return of income for AY 2019-20 within the due date prescribed u/s. 139(1) of the Act placing reliance on provisions of section 80AC of the Act.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
I heard the rival contentions and perused the material available on record. The AO made addition of cash deposits as well as cash withdrawals in the best judgement assessment order passed by him. Being aggrieved by the above assessment order an appeal was filed before the CIT(A) raising 8 grounds of appeal. The grounds of
3 ITA No. 721/Coch/2025 Thrissur Vanitha Co-op. Society Ltd. appeal, inter alia, includes challenge of the very validity of the notice issued u/s. 148A of the Act as well as challenging the assessment order on the ground of violation of the prescribed procedures. However, the CIT(A), without adjudicating all the grounds of appeal, merely confirmed the action of the AO. Therefore, in the interest of justice, the matter is restored to the file of the CIT(A) for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the appellant. Appeal filed by the assessee stands partly allowed.
ITA No. 727/Coch/2025 – AY: 2019-20 7. The learned counsel for the assessee submits that the learned Principal Commissioner of Income Tax (PCIT) vide letter dated 19.08.2025, in exercise of the powers vested with him u/s. 119(2)(b) of the Act, condoned the delay in filing the appeal and, therefore, the AO may be directed to allow the deduction u/s. 80P of the Act.
On the other hand, the ld. Sr. DR had no serious objection to remand the matter to the file of the AO.
In the circumstances, I set aside the matter to the file of AO for fresh adjudication taking into consideration the order of the Principal Commissioner of Income Tax condoning the delay in filing the return of income.
4 ITA No. 721/Coch/2025 Thrissur Vanitha Co-op. Society Ltd. 10. In the result, the appeals filed by the assessee stand partly allowed for statistical purposes.
Order pronounced in the open court on 20th November, 2025.
Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 20th November, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin