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Facts
The assessee, a co-operative society, filed its income tax return for AY 2023-24 belatedly, claiming deduction under Section 80P. The Assessing Officer denied the deduction under Section 80P under Section 143(1) citing belated filing as per Section 80AC. The assessee appealed, and also filed an application for condonation of delay in filing the return, which is still pending.
Held
The Tribunal acknowledged that Section 80AC requires timely filing for Section 80P deduction. However, given the pending application for condonation of delay in filing the return before the PCIT/CCIT, the Tribunal remanded the case to the AO. The AO is instructed to re-evaluate the eligibility for Section 80P deduction after the outcome of the condonation petition is known.
Key Issues
Whether deduction under Section 80P can be denied for a belatedly filed return under Section 80AC, especially when a petition for condonation of delay in filing the return is pending.
Sections Cited
80P, 80P(2)(a)(i), 80AC, 143(1), 139(1), 119(2)(b)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, COCHIN
Before: Shri Inturi Rama Rao
Asst.Year 2023-2024 The Kasargod District Postal The Income Tax Officer Employees Co-operative Society v. Ward – 1 &TPS Ltd., Kasargod – 671 121. Kasargod. PAN : AABAT4512G. (Appellant) (Respondent) Appellant by : --- None --- Respondent by : Smt.Leena Lal, Senior AR Date of Date of Hearing : 10.02.2025 Pronouncement : 13.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Assessment Centre / Commissioner of Income- tax (Appeals) [“CIT(A)” for short] dated 06.12.2024 having DIN & Order No.ITBA/APL/S/250/2024-25/1070971543(1) for the assessment year 2023-2024.
Briefly, the facts of the case are that the assessee is a co-operative society registered under the Kerala Co-operative Societies Act. It is engaged in the activities of providing credit facilities to its member. The return of income for the assessment year 2023-2024 was filed on 22.12.2023 disclosing `Nil’ income after claiming deduction u/s.80P of the Income-tax Act, 1961 (“the Act” hereinafter) at a total income of Rs.27,97,340. The said return of income was processed by the . The Kasargod District Postal Employees Co-op Society Ltd. Assessing Officer (“the AO” hereinafter) u/s.143(1) vide intimation dated 24.02.2024 denying deduction u/s.80P on the ground that the return of income was filed belatedly, placing reliance of the provisions of section 80AC of the Act.
Being aggrieved, the assessee filed an appeal before the CIT(A). It is submitted before the CIT(A) that the assessee has moved an application seeking the condonation of delay in filing the appeal before the concerned authority, which is still pending disposal.
The learned Senior DR relied upon the orders of the authorities below.
When the case was called upon, none appeared on behalf of the assessee. Therefore, I proceed to dispose of the appeal on merits after hearing the learned Senior Departmental Representative.
I have heard the Senior DR and perused the material available on record. The claim for deduction u/s.80P(2)(a)(i) of the Act was denied by the AO on the ground that the return of income was filed belatedly placing reliance on the provisions of sec.80AC of the Act. There is no dispute about the fact that the assessee filed the return of income belatedly. The provisions of sec.80Ac mandates that in order to claim deduction u/s.80P of the Act, the return of income is required to be filed within the due date as specified u/s.139(1) of the Act. This is a condition precedent for availing the deduction u/s.80P of the Act. Therefore, if an assessee co-operative society fails to file the return of . The Kasargod District Postal Employees Co-op Society Ltd. income within the due date specified u/s.139(1) of the Act, then the assessee will not be eligible to claim the benefit of deduction u/s.80P of the Act. The CBDT in exercising of the powers vested u/s.119(2)(b) of the Act had delegated the power to condone the delay in filing the appeal to PCIT, CCIT, etc. In the present case, the assessee moved an application seeking condonation of delay in filing the appeal before the concerned authority, which is still pending for disposal. Under the circumstances, I am of the considered opinion that the matter requires remand to the file of the AO. Accordingly, I set aside the matter to the file of the AO with a direction to decide the issue of liability of deduction u/s.80P of the Act afresh after taking into consideration the outcome of the petition filed by the seeking condonation of delay in filing the return of income before the PCIT, CCIT, etc. as the case may be.
In the result, the appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced on this 13th day of February, 2025.
Sd/- (Inturi Rama Rao) ACCOUNTANT MEMBER Cochin; Dated : 13th February, 2025. Devadas G*