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Facts
The assessee, a co-operative bank, filed an appeal against the denial of deduction under Section 80P for Assessment Year 2017-18, due to not filing the return of income within the due date under Section 139(1). There was a 371-day delay in filing the appeal, which the assessee sought to condone due to the illness and demise of their Chartered Accountant.
Held
The Tribunal condoned the delay in filing the appeal. However, on merits, it dismissed the appeal, holding that the assessee is not entitled to deduction under Section 80P as the return of income was not filed within the due date prescribed under Section 139(1), relying on the Kerala High Court judgment in *Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham*.
Key Issues
Whether deduction under Section 80P is allowable if the return of income is not filed within the due date under Section 139(1) of the Income-tax Act, 1961, for Assessment Year 2017-18.
Sections Cited
250, 80P, 139(1), 80A(5)
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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri George George K, Vice- & Shri Inturi Rama Rao
:Asst.Year 2017-2018 Kandalloor Service Co-operative The Income Tax Officer Bank Limited No.2166 v. Ward 5 Pattoli Market P.O. Alleppey. Puthiyavila, Alappuzha – 690531 PAN :AABAK7898J. (Appellant) (Respondent) Appellant by : Sri.R.Krishnan, CA Respondent by : Smt.Leena Lal, Senior AR Date of Date of Hearing :15.05.2025 Pronouncement : 16.05.2025 O R D E R
Per George George K, Vice-President :
This appeal at the instance of assessee is directed against the order of the National Faceless Appeal Centre / Commissioner of Income Tax (Appeals) [hereinafter “CIT(A)”], dated 19.01.2024, passed u/s.250 of the Income-tax Act, 1961 (hereinafter “the Act”) The relevant assessment year is 2017-2018.
There is a delay of 371 days in filing this appeal before the Tribunal. The assessee had filed a petition for condonation of delay supported by an affidavit of the Secretary of the assessee co-operative bank. The reasons stated for belated filing of the appeal, reads as follow:-
. Kandalloor SCB Limited. “The delay was caused due to unforeseen and unfortunate events. The case was handled by a reputed Chartered Accountant who fell ill following an accident. Despite his illness, he attempted to manage his professional obligations by assigning his pending work to his brother, who is also a Chartered Accountant. However, amidst the transition of responsibilities, this particular case was inadvertently overlooked. Subsequently, the CA's health deteriorated further, leading to critical illness and hospitalization for a continuous period of 103 days starting from November, 2024. Despite all efforts, he succumbed to his illness and tragically passed away on 10-03-2025. Thereafter, his brother, after attending to the funeral rites and related ceremonies, resumed the pending cases and during this process, this file was brought to his attention. Upon realization, immediate steps were taken to prepare and file the appeal without any further delay. The delay in filing the present appeal was therefore entirely due to these unavoidable circumstances and was neither deliberate nor intentional.” 2.1 We have perused the affidavit filed by the assessee. We are satisfied that there is sufficient cause for belated filing of this appeal and no latches can be attributed to the assessee. Hence, we condone the delay of 371 days in filing this appeal and proceed to dispose of the same on merits.
The grounds raised read as follows:-
“1. The learned Commissioner of Income Tax (Appeals) erred in denying the deduction u/s 80P of the Income Tax Act, 1961, on the ground that the return of income was not filed within the due date prescribed under Section 139(1).
The learned Commissioner of Income Tax (Appeals) failed to appreciate that the amendment to Section 80A(5), which made it mandatory to claim deductions in the return of income, was inserted by the Finance Act, 2018 and is applicable only from Asst. Year 2018-19 onwards.
. Kandalloor SCB Limited.
The learned Commissioner of Income Tax (Appeals) erred in computing business income of the appellant at Rs 1,39,32,040/- overlooking the fact that in computing the income of a Co-operative Society, several provisions and reserves are to be statutorily made and is allowable.
The appellant craves leave to add, modify, or alter any of the grounds of appeal at the time of hearing. Appellant prays that the Hon. ITAT be pleased to allow the deduction claimed u/s 80P for the Asst. Year 2017-18.”
The learned AR fairly submitted that the issue in question is covered against the assessee by 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.).
The learned Departmental Representative was duly heard.
We have heard rival submissions and perused the material on record. The solitary issue that is raised is with regard to the claim of deduction u/s.80P of the Act. The claim of deduction u/s.80P of the Act has been denied for the reason that assessee did not file the return of income. The said issue is no longer res integra. The Hon’ble Kerala High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra) had categorically held that for claiming deduction u/s.80P of the Act, the assessee necessarily has to file the return of income within the due date prescribed u/s.139(1) of the Act. In the light of the above judgment of the Hon’ble Kerala High Court, we hold that the assessee is not entitled for deduction u/s.80P of the Act. It is ordered accordingly.
In the result, the appeal filed by the assessee is dismissed. Order pronounced on this 16th day of May, 2025.