NELLIKKAPARAMBA AGRICULTURAL AND WORKERS WELFARE CO-OPERATIVE SOCIETY LIMITED D 3065,KOZHIKODE vs. ITO, WARD 2(3), KOZHIKODE

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ITA 991/COCH/2024Status: DisposedITAT Cochin19 February 2025AY 2018-19Bench: SHRI INTURI RAMA RAO (Accountant Member)4 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted a CBDT instruction dated 27.02.2019 u/s 119(2)(b), which deemed returns filed until 02.08.2019 for Kerala taxpayers (due to 2018 floods) as timely filed by 31.10.2018. Therefore, the appellant's return should not be treated as belated, and the matter is remitted to the CPC to amend the rectification order.

What were the facts?

The appellant, a co-operative society, filed its AY 2018-19 return claiming Section 80P deduction, which was denied by the CPC u/s 143(1) as belated. This disallowance was confirmed by a rectification order u/s 154 and subsequently by the CIT(A).

What were the issues?

Whether the income tax return filed by the co-operative society for AY 2018-19 should be considered belated, given the CBDT instruction for Kerala taxpayers affected by the 2018 floods.

Which sections of the Income-tax Act were involved?

Section 80P,Section 143(1),Section 154,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM

For Appellant: Shri Johnson George, CA
For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 05.02.2025Pronounced: 19.02.2025

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 25.11.2024 for Assessment Year (AY) 2018-19.

2.

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 appellant filed the return of income for AY 2018-19 on 24.09.2018 disclosing Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. 7,22,972/-. The said return of income was processed by the CPC u/s. 143(1) of the Act vide intimation Nellikkaparamba Agricultural and Workers Welfare Co-op. Society Ltd. dated 09.08.2019 denying the deduction u/s. 80P on the ground that the return of income was filed belatedly.

3.

Being aggrieved by the said intimation, a petition seeking rectification of the intimation was made vide application dated 09.06.2020. The said application came to be disposed of vide order passed u/s. 154 of the Act on 11.07.2020 confirming the disallowance u/s. 80P(2)(a)(1) of the Act.

4.

Being aggrieved by the above, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

5.

Being aggrieved, the appellant is in appeal before us in the present appeal.

6.

It is submitted that the CBDT vide instruction dated 27.02.2019 issued u/s. 119(2)(b) of the Act directed that all the return of income and reports of audit which are filed till 02.08.2019 are deemed to have been filed by 31.10.2018 in case of tax payers of Kerala following the devastating floods in the month of August, 2018. Therefore, in the light of this instruction, the return of income cannot be considered as belatedly filed. Therefore, the matter may be set aside to the AO to pass appropriate order rectifying the order passed u/s. 154 of the Act.

7.

The learned Sr. DR did not express any objection to the above submission.

8.

In the light of the above facts and circumstances I remit the matter back to the file of the CPC to amend the rectification considering the Nellikkaparamba Agricultural and Workers Welfare Co-op. Society Ltd. instruction issued by the CBDT treating all the returns of income filed by 02.08.2014 were treated as filed by 31.10.2018.

9.

In the result, the appeal filed by the assessee stands partly allowed.

Order pronounced in the open court on 19th February, 2025. 10.

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