KAYAMKULAM VILLAGE SERVICE CO-OPERATIVE BANK LTD NO 1596,ALAPPUZHA vs. ASSESSING OFFICER,WARD 2, ALAPPUZHA

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. The return of income for AY 2021-22 was filed on 31.03.2022 disclosing Nil Kayamkulam Villege Service Co-op. Bank Ltd. income after claiming deduction u/s. 80of the Income Tax Act, 1961 (the Act). The said return of income was processed by the CPC u/s. 143(1) of the Act vide intimation dated 02.11.2022 disallowing the claim for deduction u/s. 80P on the ground that the appellant is not eligible to claim deduction u/s. 80P as the return of income was not filed within the due date prescribed u/s. 139(1) of the Act.

Being aggrieved, an appeal was filed before the CIT(A) with a delay of 814 days. The CIT(A) refused to condone the delay of 814 days and dismissed the appeal in limine on the ground of delay.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

The learned counsel for the assessee submitted that the appellant had filed an application before the Pr. CIT seeking condonation of delay in filing the return of income. The application is pending disposal. It is further submitted that the CIT(A) ought not have refused to condone the delay in filing the appeal in the facts of the present case.

On the other hand, the learned Sr. DR did not raise any serious objection to the contentions of the learned counsel for the assessee.

We have heard the rival contentions and perused the material available on record. Admittedly, the appellant had not filed the return of income within the due date prescribed u/s. 139(1) of the Kayamkulam Villege Service Co-op. Bank Ltd. Act for AY 2021-22. The provisions of section 80AC mandates that in order to claim deduction u/s. 80P by a co-operative society, return of income should be filed within the due date prescribed u/s. 139(1) of the Act. The CPC while processing the return of income u/s. 143(1) had denied deduction u/s. 80P solely on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act. We do not find any illegality in the action of the CPC in disallowing the claim for deduction u/s. 80P of the Act. However, in the event the application filed by the appellant society before the Pr. CIT seeking condonation of delay in filing the return of income is disposed of favourably, the CPC/AO can amend the intimation u/s. 143(1) of the Act. We find that the CIT(A) was justified in refusing to condone the delay in the absence of any justifiable reason for the delay and do not find any reason to interfere with the order of the CIT(A).

In the result, the appeal filed by the assessee stands dismissed.