KUMARAPURAM SERVICE CO-OPERATIVE BANK LIMITED NO 2147,KARTHIKAPPALLY vs. ITO, WARD 2, ALAPPUZHA

Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is engaged in the business of accepting deposits from members and providing credit facilities to members. The return of income for AY 2021-22 was filed on 31.03.2022 declaring Nil Kumarapuram Service Co-op. Bank Ltd. income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 2,34,57,500/-. The said return of income was processed by CPC u/s. 143(1) of the Act vide intimation dated 12.12.2022 by making adjustment by disallowing the claim for deduction u/s. 80P on the ground that the return of income was not filed within the due date specified u/s. 139(1) of the Act, placing reliance on the decision of section 80AC of the Act.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.

The learned counsel for the assessee submitted that the CIT(A) fell in gross error in not considering the application filed u/s. 119(2)(b) of the Act before the CBDT seeking condonation of delay in filing the appeal. It is further submitted that the appellant could not file the return of income within the prescribed period on account of factors which are beyond the control of the assessee.

On the other hand, the learned Sr. DR, after making reference to the provisions of section 80AC, submitted that no interference in the impugned order is called for.

We have heard the rival contentions and perused the material available on record. The issue in the present appeal relates to Kumarapuram Service Co-op. Bank Ltd. whether the CPC was justified in making prima facie adjustment by disallowing the claim for deduction u/s. 80P of the Act on the ground of belated filing of return of income. It is undisputed fact that the appellant filed the return of income u/s. 139(4) of the Act belatedly. No return of income was filed u/s. 139(1) of the Act. Provisions of section 80AC provides that in order to claim deduction u/s. 80P, return of income is required to be filed 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. Claiming deduction u/s. 80P without complying with the conditions laid down u/s. 80AC amounts to incorrect claim as defined in Explanation to section 143(1) of the Act. Accordingly, we do not find any illegality in the adjustment made by CPC while processing the return of income.

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