Loading judgment…
Facts
The assessee, a cooperative society, filed its return of income for AY 2021-22 claiming deduction under section 80P. The return was filed on 31/03/2022, which was after the due date of 15/03/2022. The CPC disallowed the deduction under section 80P based on section 80AC.
Held
The Tribunal held that filing the return of income within the due date prescribed under section 139(1) is a mandatory condition precedent for claiming deduction under section 80P, as per section 80AC. Non-fulfillment of this condition renders the claim incorrect.
Key Issues
Whether the assessee is eligible for deduction under section 80P when the return of income was filed after the due date, violating the conditions of section 80AC?
Sections Cited
80P, 80AC, 139(1), 143(1)
AI-generated summary — verify with the full judgment below
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
This appeal filed by the assessee is directed against the order of the ADDL/JCIT(A), Panchkula [CIT(A)] dated 16.05.2025 for Assessment Year (AY) 2021-22.
Brief facts of the case are that assessee is a cooperative society registered under Kerala Co-operative Societies Act, 1969. It is classified as primary agricultural credit cooperative society. It is engaged in the business of accepting deposits from members and providing credit facilities to its members. The return of income for The Kumarapuram Service Co-op Bank Ltd No.1449 the A.Y. 2021-22 was filed on 31/03/2022 declaring income of Rs.39,76,959/- after claiming deduction u/s. 80P of the Act. The said return of income was processed by CPC u/s. 143(1) Income Tax Act, 1961 (for short, 'the Act') vide intimation dated 02/11/2022 disallowing the claim for deduction u/s. 80P by holding that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act as the appellant filed the return of income on 31/03/2022 as against the due date of 15/03/2022 placing reliance on the provisions of section 80AC of the Act.
Being aggrieved by the said intimation, an appeal was filed before the CIT(A) contending that since appellantfiled an application seeking condonation in filing the return of income before the Chief Commissioner of Income Tax, the appeal should be allowed. However, learned CIT(A) after making reference to the provisions of section 80AC and the judgments of Hon'ble Calcutta High Court in case of CIT vs. Shelcon Properties P. Ltd. [2015] 370 ITR 305 (Cal.) and Suolificio Linea Italia (India) (P.) Ltd. vs. JCIT [2018] 407 ITR 16 (Cal.) held that when the conditions precedent laid down by u/s. 80AC of the Act were not fulfilled, the benefit of provisions of section 80P cannot be allowed, as the conditions laid down in section 80AC are mandatory in nature and filing of return of income within due date prescribed u/s. 139(1) is also mandatory.
The Kumarapuram Service Co-op Bank Ltd No.1449 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. The issue in present appeal relates to the validity of prima-facie adjustment made by CPC while processing the return of income u/s. 80P by disallowing the claim for deduction u/s. 80P of the Act. The provisions of section 80AC provides that in order to claim deduction u/s. 80P, the return of income should be filed by an assessee within the due date prescribed u/s. 139(1) of the Act. It is a condition precedent for claiming deduction u/s. 80P of the Act as held by the Hon'ble Calcutta High Court in the case of Shelcon Properties P. Ltd. (supra), it is a mandatory condition, non- fulfillment of this condition renders the claim incorrect as defined in section 143(1) of the Act. Therefore, we do not find any illegality in the order passed by the learned CIT(A). Thus, this appeal filed by the assessee stands dismissed.
In the result, appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 13th August, 2025.