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Facts
The assessee, a cooperative society, filed its return of income declaring nil income after claiming deduction under Section 80P(2)(a)(i). The Assessing Officer completed the assessment at a higher income, denying the deduction on the grounds that the return was not filed within the due date as per Section 139(1) and Section 80AC of the Act.
Held
The Tribunal held that filing the return of income within the prescribed due date under Section 139(1) is a mandatory condition precedent for claiming deduction under Section 80P. The Tribunal does not have the power to condone the delay in filing the return. Therefore, the order of the CIT(A) upholding the disallowance was confirmed.
Key Issues
Whether the assessee is entitled to deduction under Section 80P(2)(a)(i) when the return of income was not filed within the due date prescribed under Section 139(1) and Section 80AC.
Sections Cited
80P(2)(a)(i), 139(1), 80AC, 143(3), 144B, 199(2)(b), 34
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SOUNDARARAJAN K, JM
Assessment Year: 2023-24 Punnayurkulam Service Cooperative .......... Appellant Bank Ltd. No. P417, Punnayurkulam, Thrissur. [PAN: AACAP 6129 J] vs. Income Tax Officer .......... Respondent Ward-1, Thrissur. Appellant by: Shri Ramdas M, CA Respondent by: Smt. Leena Lal, Sr. DR Date of Hearing: 04.08.2025 Date of Pronouncement: 08.08.2025 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 [CIT(A)] dated 20.05.2025 for Assessment Year (AY) 2023-24.
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 its members and providing credit facilities to its members. The return of income for the A.Y. 2023-24 was filed on 31/12/2020 declaring nil income after Punnayurkulam Service Co-op. Bank Ltd. claiming deduction u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 (for short, 'the Act'). Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 24/02/2025 passed u/s. 143(3) r.w.s. 144B of the Act at a total income of Rs. 2,05,63,958/-. While doing so, the AO denied the deduction of claim u/s. 80P(2)(a)(i) on the ground that return of income was not filed within the due date prescribed u/s. 139(1) of the Act placing reliance on the provision of section 80AC of the Act.
Being aggrieved, an appeal was filed before the CIT(A), who while confirming the disallowance of claim for deduction u/s. 80P, however, deleted the addition made on account of adding back of the provisions.
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
It is submitted that the appellant filed an application u/s. 199(2)(b) of the Act before the learned PCIT for condonation of delay and prayed that appeal may be allowed.
On the other hand, learned Sr.DR relied on the orders passed by the lower authorities.
We have heard the rival submissions and perused the material on record.
The provisions of section 80AC provides that in order to claim for deduction u/s. 80P, an assessee should file the return of income