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Facts
The assessee, a co-operative society, failed to file its return of income for the assessment year 2017-2018 despite receiving notices under Section 142(1). A re-assessment order was passed, subsequently reviewed under Section 263 and set aside. In the fresh assessment, the Assessing Officer denied the deduction claimed under Section 80P(2) (Rs. 2.21 crore), citing Section 80AC due to the non-filing of the return, which was upheld by the CIT(A).
Held
The Tribunal, relying on the jurisdictional High Court's decision in *Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT*, held that since the assessee failed to file its return of income within the stipulated time under Section 139(1), it is not entitled to the deduction under Section 80P of the Act. Consequently, the orders of the lower authorities denying the deduction were affirmed.
Key Issues
Whether a co-operative society is entitled to a deduction under Section 80P of the Income Tax Act if it fails to file its return of income within the time prescribed under Section 139(1), as per the provisions of Section 80AC.
Sections Cited
142(1), 263, 80P(2), 80AC, 139(1), 80P
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
Asst.Year 2011-2012 Kanayannur Service Co- The Income Tax Officer operative Bank Limited v. Non Corp Ward 1(1) Chottanikara Kochi. Ernakulam – 682 312. PAN : AABAK4920B. (Appellant) (Respondent) Appellant by : Sri.Amaljit P.J., CA Respondent by : Smt.Veni Raj, CIT-DR Date of Pronouncement : 20.05.2025 Date of Hearing : 19.05.2025. O R D E R Per Prakash Chand Yadav, JM : These two appeals filed by the assessee are arising from the order of the National Faceless Appeal Centre / learned Commissioner of Income-tax (Appeals) [“CIT(A)” for short] dated 27.05.2024, and relate to the assessment years 2017-2018 and 2011-2012.
Since facts are common, we are deciding these appeals by way of this consolidated order, for the sake of convenience. We will take assessment year 2017-2018 as a lead year and discuss the facts.
-660/Coch/2024. Kanayannur SCB Limited.
The brief facts as coming out from the orders of the authorities below are that the assessee is a co-operative society could not file the return of income for the impugned year. Thereafter the Assessing Officer issued notice u/s.142(1) of the Act calling for the return of income. No compliance was made by the assessee in this notice. Thereafter the AO issued another notice on 15th October, 2019 calling for the details from the assessee, however, this notice also remained uncomplied with. At last an order of assessment was passed on 12.12.2019 determining an income of the assessee at Rs.1,30,40,812. This order was reviewed by the ld.CIT u/s.263 of the Income-tax Act, 1961 and ultimately set aside on 08th March, 2022. Thereafter the AO passed the impugned assessment order and denied the deduction of sec.80P(2) of the Act to the tune of Rs.2.21 crore on the ground that since no return of income was filed the claim of the assessee is not maintainable in view of the provisions of sec.80AC of the Act.
Aggrieved with the order of the AO, the assessee filed appeal before the ld.CIT(A), however, could not get any success.
Aggrieved with the order of the ld.CIT(A), the assessee has come up in appeal before us. When this matter was called up for hearing, the learned Counsel for the assessee argued that the CIT(A) has erred in denying deduction of 80P of the Act.
The learned CIT-DR appearing on behalf of the Revenue relied upon the orders of the authorities below as well as on -660/Coch/2024. Kanayannur SCB Limited. the judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham v. CIT (2023) 459 ITR 730 (Ker.).
We have heard the rival submissions and perused the material available on record. We observe that admittedly the facts of the case would show that the assessee has not filed any return of income within the time prescribed u/s.139(1) of the Act, and therefore, we are of the opinion that the assessee is not entitle for deduction u/s.80P of the Act, in the light of the judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra). Therefore, the order of the CIT(A) is justified in affirming the order of the AO, and accordingly, the appeal of the assessee is dismissed.
In the result, the appeals filed by the assessee are dismissed.
Order pronounced on this 20th day of May, 2025.