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Facts
The appellant, a co-operative society, filed a Nil income return under Section 139(4) for AY 2022-23, claiming deduction under Section 80P. The AO disallowed the Section 80P deduction, citing Section 80AC, an action confirmed by the CIT(A).
Held
The Tribunal noted that the Pr. Commissioner of Income Tax (PCIT) had condoned the delay in filing the appeal under Section 119(2)(b), and the Sr. DR did not object. Considering this, the Tribunal remanded the matter to the AO to decide the issue of Section 80P eligibility based on the PCIT's condonation of delay.
Key Issues
Whether the deduction under Section 80P is allowable when the return was filed under Section 139(4) and the delay in filing the appeal was subsequently condoned by the Pr. CIT.
Sections Cited
139(1), 139(4), 80P, 143(3), 144B, 80AC, 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30.09.2024 for Assessment Year (AY) 2022-23.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. The return of income for AY 2022-23 was not filed under the provisions of section 139(1) of the Act, but the appellant had filed the return of income u/s. 139(4) of the Act on 30.12.2022 declaring Nil income after claiming deduction u/s. 80P of the Act. Against the said Kerala University Staff Housing Co-op. Society Ltd return of income, the assessment was completed by the Income Tax Officer-Ward-2(1), Thiruvananthapuram (hereinafter called "the AO") u/s. 143(3) r.w.s. 144B of the Act vide order dated 20.02.2024 disallowing the deduction calmed placing reliance on the provisions 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 placing reliance on the decision of the Hon'ble Jurisdictional High Court in the case of Nileshwar Range Kallu Chethu Vyavasaya Thozihilali Sahararana Sangham [2023] 459 ITR 730 (Ker).
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
When the matter was called on, the learned counsel for the assessee submits that the delay in filing the appeal was condoned by the learned Pr. Commissioner of Income Tax, Thiruvananthapuram (PCIT) under the powers vested with him u/s. 119(2)(b) of the Act vide proceedings dated 25.09.2024 and, therefore, the appellant is eligible for deduction u/s. 80P of the Act.
On the other hand, the learned Sr. DR has not opposed the above submissions.
Having perused the material on record, I am of the considered opinion that the matter requires remand to the file of the AO to decide the issue in appeal based on the outcome of the application filed before the PCIT seeking condonation of delay in filing the appeal.
Order pronounced in the open court on 27th March, 2025. 9.