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Facts
The assessee, a co-operative society, filed its income tax return for AY 2021-22 belatedly, claiming a deduction under Section 80P. The CPC processed the return under Section 143(1) and disallowed the Section 80P claim, stating that the return was not filed within the due date specified under Section 139(1) as per Section 80AC of the Income Tax Act.
Held
The Tribunal held that filing the return within the due date under Section 139(1) is a mandatory condition precedent for claiming deduction under Section 80P, as per Section 80AC. Consequently, the adjustment made by the CPC to disallow the deduction due to belated filing was found to be legal and correct.
Key Issues
Whether the CPC was justified in making a prima facie adjustment by disallowing the claim for deduction under Section 80P due to belated filing of the return of income, given the conditions precedent laid down in Section 80AC.
Sections Cited
80P, 143(1), 139(1), 80AC, 139(4), 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI SONJOY SARMA, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-9, Mumbai [CIT(A)] dated 28.03.2025 for Assessment Year (AY) 2021-22.
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.
Order pronounced in the open court on 22nd July, 2025.