THE KUMARAPURAM SERVICE CO-OPERATIVE BANK LIMITED NO 1449 ERICKAVU,ALAPPUZHA vs. ITO, WARD 2, ALAPPUZHA

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.

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