THE BANK EMPLOYEES COOPERATIVE CREDIT SOCIETY,KOZHIKODE vs. ITO, WARD 1(3), KOZHIKODE

There is a delay of 508 days in filing this appeal before the Tribunal. The appellant filed a condonation petition along with an Affidavit of the Secretary of the appellant, stating therein the reasons for the belated filing of this appeal that the assessee had no knowledge of the appeal order until, they received the notice of demand dated 09.01.2025, which resulted in the belated filing of the appeal. The assessee further submits that upon receiving the notice, the assessee informed the authorized representative for taking necessary action, . The Bank Employees Co-op Credit So.Ltd. including filing an appeal against the said demand. However, due to ill health of the authorized representative, there was further delay in filing the appeal. It is therefore submits that the delay is neither intentional nor deliberate but due to the reasons beyond its control and prayed to condone the delay.

The appellant is a co-operative society, registered under the Kerala Co-operative societies Act, 1969. The return of income for the assessment year 2018-2019 was filed on 23.09.2021 declaring Nil income after claiming deduction u/s.80P of the Income-tax Act, 1961 (“the Act” hereinafter) amounting to Rs.31,43,113. The assessment was completed u/s.143(3) r.w.s. 143(3A) & 143(3B) of the Act. While doing so, the AO disallowed the deduction claimed u/s.80P of the Act, by holding that the assessee did not file the return of income within the time prescribed u/s.139(1) of the Act.

Aggrieved by the assessment order, the assessee preferred appeal before the CIT(A), who vide the impugned order dated 03.08.2023 upheld the action of the AO following 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.) by holding that since the assessee had not filed the return of

Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal in the present appeal.

The learned Senior DR submits that the issue in question 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 v. CIT (2023) 459 ITR 730 (Ker.).

I heard the heard rival submissions and perused the material available on record. The solitary issue for our consideration is whether the assessee service co-operative bank is entitled for deduction u/s.80P of the Act, inspite of the return not being filed within the due date prescribed u/s.139(1) of the Act. The issue is no longer res integra. The Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra) had held that for claiming deduction u/s.80P, the assessee-society must make the said claim in the return of income filed within the due date prescribed u/s.139(1) of the Act. In the light of the latest judgment of the Hon’ble jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham (supra), I hold that the assessee service co-operative bank 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.