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Facts
The assessee, a co-operative society, filed its return of income for AY 2018-19 on 28.12.2018 claiming deduction u/s. 80P. The AO completed the assessment at a total income of Rs. 72,95,927/-, denying the deduction on the ground that the return was filed belatedly as per Section 80AC of the Act. The CIT(A) upheld the AO's order.
Held
The Tribunal held that the power to condone the delay in filing the return of income is conferred upon the Pr.CIT u/s. 119B of the Act and the Tribunal is not vested with such powers. Therefore, the appeal filed by the appellant society has no merit.
Key Issues
Whether the deduction under Section 80P can be allowed when the return of income was filed beyond the due date, and whether the Tribunal has the power to condone such delay.
Sections Cited
80P, 80AC, 139(1), 119B, 143(3), 143(3A), 143(3B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI ANIKESH BANERJEE, JM
Assessment Year: 2018-19 Ala Service Co-op. Bank Ltd . .......... Appellant Santhipuram P.O., Kodungallur, Thrissur 680668 [PAN: AADAA5833H] vs. The Income Tax Officer, WD-2(1), Thrissur ......... Respondent Assessee by: Shri Jojo, C.A., Advocate Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 28.10.2025 Date of Pronouncement: 30.10.2025 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 17.06.2025 for Assessment Year (AY) 2018-19.
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 classified as a primary agricultural credit co-operative society engaged in the business of providing credit facilities to its members and accepting deposits from members. The return of Ala Service Co-op. Bank Ltd. income for AY 2018-19 was filed on 28.12.2018 claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act). Against the said return of income, the assessment was completed by the National e- Assessment Centre (hereinafter called "the AO") vide order dated 15.04.2021 passed u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act at a total income of Rs. 72,95,927/-. While doing so, the AO denied deduction u/s. 80P in respect of interest income 72,95,927/- derived from District Co-operative bank.
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 return of income was filed belatedly placing reliance on the provisions of section 80AC of the Act.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The learned counsel for the assessee submits before us that application for condonation of delay in filing the appeal was filed with the Principal Commissioner of Income Tax which is pending disposal. Therefore, the appeal may be restored to the file of the AO with direction to pass consequential order after disposal of the application by the Pr. CIT.
On the other hand, the learned Sr. DR opposed the above submission.
Ala Service Co-op. Bank Ltd.
We have heard the rival contentions and perused the material available on record. On mere perusal of the order of the NFAC it would be evident that NFAC had denied deduction u/s. 80P on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act placing reliance on the provisions of section 80AC of the Act. There is no dispute about the applicability of provisions of section 80AC of the Act. The power to condone the delay in filing the return of income is conferred upon the Pr.CIT u/s. 119B of the Act. The Tribunal is not vested with such powers. Therefore, we do not find any merit in the appeal filed by the appellant society. We make it very clear that the outcome of the present appeal shall have no bearing on the pending application before the Pr. CIT.
In the result, the appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 30th October, 2025.