Loading judgment…
Facts
Kayamkulam Villege Service Co-op. Bank Ltd. filed its AY 2021-22 return claiming Section 80P deduction after the due date, leading to disallowance by the CPC under Section 143(1) citing Section 80AC. The subsequent appeal to CIT(A) was filed with an 814-day delay and was dismissed in limine.
Held
The ITAT found no illegality in the CPC's disallowance due to late filing and upheld the CIT(A)'s refusal to condone the appeal delay, finding no justifiable reason. It clarified that if the Pr. CIT later condones the delay in the original return filing, the intimation could be amended.
Key Issues
The key issues were whether the CIT(A) was justified in dismissing the appeal due to delay, and if a co-operative society can claim Section 80P deduction when the return is filed after the due date prescribed under Section 139(1), as per Section 80AC.
Sections Cited
80P, 143(1), 139(1), 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI MANU KUMAR GIRI, JM
Assessment Year: 2021-22 Kayamkulam Villege Service Co-op. Bank Ltd. .......... Appellant Perungala P.O., Alappuzha 690599 [PAN: AADAK5426G] vs. The Income Tax Officer. Ward-2, Alappuzha ......... Respondent Assessee by: Shri Sabu C.S., CA Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 07.11.2025 Date of Pronouncement: 19.11.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (NFAC) dated 14.08.2025 for Assessment Year (AY) 2021-22.
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.
Order pronounced in the open court on 19th November, 2025.