VALAPAD SERVICE CO OPERATIVE BANK LTD,VALAPAD vs. INCOME TAX OFFICER, GURUVAYUR

This appeal by the assessee is directed against the order of the CIT, Appeal-4, Bengaluru [hereinafter referred to as ‘CIT(A)] dated 02.01.2025 for the assessment year 2023-24.

Brief Facts of the Case in the present case, the assessee is a cooperative society. For the Assessment Year 2023–24, the return of income was not filed within the due date as prescribed under section 139(1) of the Income-tax Act, 1961. Consequently, the CPC, while processing the return under section 143(1), disallowed the claim of deduction under section 80P of the Act and added an income of Rs. 2,41,62,830 income of the assessee. The assessee contended that it had filed a condonation petition before the CBDT explaining the reasons for the delay in filing the return, and had also submitted a response to the Valapad Service Co-Operative Bank Ltd intimation under section 143(1)(a). However, the CPC did not consider the condonation request or the response and mechanically disallowed the deduction under section 80P(2)(a)(i).

Aggrieved by the said intimation dated 24.04.2024, the assessee filed an appeal before the Ld. CIT(A), which was dismissed. The assessee relied upon its submissions made before the lower authorities and reiterated that the deduction under section 80P should not have been denied merely on the ground of delayed filing of return, especially since a condonation petition was pending with the CBDT. The Ld. CIT(A), however, followed the judgment of the Hon’ble Kerala High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT [(2023) 450 ITR 730 (Ker)] dated 14.03.2023, wherein it was held that the deduction under section 80P will not be available if the return is not filed within the due date prescribed under section 139(1), even if filed under section 139(4), 142(1), or 148.