KALAVOOR SERVICE CO-OPERATIVE BANK LTD,ALAPPUZHA vs. ITO,WARD-5, ALAPPUZHA

The present appeal of the assessee is arising from the order of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals) [“CIT(A)” for short] dated 26.07.2024, having DIN & Order No.ITBA/NFAC/S/250/2024- 25/1067071732(1) and relates to the assessment year 2017- 2018.

Brief facts of the case as coming out from the orders of the authorities below are that the assessee is a co-operative society registered as a primary agricultural credit society under the Kerala Co-operative Societies Act, 1969, deposited huge amount of cash in its bank account during demonetization period. Observing this, the department took the case of the assessee under scrutiny. During the course of assessment . Kalavoor SC.B Limited. proceedings, it is observed by the Assessing Officer that the assessee has not filed any return of income for the impugned assessment year. Accordingly notice u/s.142(1) of the Income- tax Act, 1961 was issued to the assessee asking for the return of income. However, this notice remained un-complied with. Thereafter so many notices were issued to the assessee, but the assessee could not file return of income, rather, replied simply that since the assessee is a co-operative society and eligible for deduction u/s.80P of the Act and not having taxable income, it has not filed the return of income for the impugned assessment year. The AO could not find any force in the argument of the assessee and hence framed the assessment by making addition of Rs.2,79,87,000/- The AO also made other addition of Rs.43,19,484, which represents other deposits received by the assessee-society during the year under consideration.

Aggrieved with the order of the AO, the assessee preferred an appeal before the CIT(A) and argued that the assessee is entitled for deduction u/s.80P(2)(a)(i) of the Act on the sums received by the assessee-society from the members. However, the CIT(A) considering the provisions of section 80A(5) of the Act, held that since the assessee has not filed the return of income on time, the assessee is not entitled for deduction u/s.80P(2).

Aggrieved with the order of the CIT(A), the assessee has come up in appeal before us. None appeared on behalf of the assessee, in-spite of the proper service of notice. However, the . Kalavoor SC.B Limited. issue is squarely covered by the judgment of the Hon’ble jurisdictional in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.). Therefore, we are deciding this appeal on the basis of the material available on record.

The learned CIT-DR relied upon the orders of the authorities below.

After hearing the arguments of the learned CIT-DR and perusing the material available on record, we are of the firm opinion that the issue involved in this appeal is squarely covered by the judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra), wherein it has been that no deduction u/s 80(P) is available to such assessee who did not file return of income in time. Therefore, respectfully following the judgment of the Hon’ble jurisdictional High Court cited supra, we hereby dismiss this appeal of the assessee.

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