Loading judgment…
Facts
The assessee, a primary agricultural credit cooperative society, filed its income tax return for AY 2023-24 belatedly, claiming a deduction under Section 80P(2)(a)(i). The CPC processed the return under Section 143(1) and denied the 80P deduction due to belated filing, which was upheld by the CIT(A). The assessee has a pending condonation petition under Section 119(2)(b) before the CBDT.
Held
The Tribunal held that filing the return within the due date specified in Section 139(1) is a prerequisite for claiming deduction under Section 80P. Since the return was filed belatedly, the denial of the deduction by the lower authorities was upheld. The Tribunal dismissed the appeal, granting the assessee liberty to pursue the pending condonation petition before the CBDT.
Key Issues
Whether a belatedly filed Income Tax Return disentitles a cooperative society from claiming deduction under Section 80P of the Income Tax Act when a condonation petition is pending before the CBDT.
Sections Cited
80P(2)(a)(i), 143(1), 80P, 119(2)(b), 139(1)
AI-generated summary — verify with the full judgment below
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)-2, Noida [CIT(A)] dated 29.03.2025 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. The return of income for the AY 2023-24 was filed on 16/12/2023 after Edamuttam Service Co-op. Bank Ltd. claiming deduction of Rs. 40,89,970/- u/s. 80P(2)(a)(i) of the Act. The said return of income was processed by the CPC u/s. 143(1) vide intimation dated 24/04/2024 by denying claim made u/s. 80P on the ground that return of income was filed belatedly. The assessee has filed a condonation petition u/s. 119(2)(b) of the Act before the CBDT, which is pending for consideration. The ITO, Ward-1 & TPS, Thrissur (for short, 'AO-CPC') issued a notice on 15/03/2024 calling for explanation for condonation of delay. The explanation offered by the assessee was rejected by the AO-CPC and also disallowed the claim made u/s. 80P.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO-CPC.
Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.
I find that filing the return of income within the due date prescribed u/s. 139(1) of the Act is, a condition precedent for claiming deduction u/s. 80P of the Act. Admittedly, the assessee had filed the return of income belatedly and, therefore, the CPC has rightly denied the exemption u/s. 80P of the Act, which was confirmed by the Ld. CIT(A). It is apparent from the record that assessee moved a petition for condonation of delay in filing the return of income before the Central Board of Direct Taxes (CBDT) u/s. 119(2)(b) of the Act, the same is pending for consideration. At Edamuttam Service Co-op. Bank Ltd. this stage, I decline to interfere in the orders passed by the lower authorities, however, assessee is at liberty to pursue appropriate proceedings after the outcome of the petition pending before the CBDT. Thus, this appeal filed by the assessee is dismissed with the aforesaid liberty.
In the result, the appeal filed by the assessee is dismissed with the aforesaid liberty.
Order pronounced in the open court on 31st July, 2025.