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Facts
The appellant, a co-operative society, filed its original return for AY 2018-19 claiming Section 80P deduction, which was later revised. The CPC issued a defect notice under Section 139(9) and subsequently processed the return under Section 143(1), disallowing the Section 80P claim on the ground of belated filing, an action upheld by the CIT(A).
Held
The Tribunal found that the original return was filed within the extended due date (28.02.2019) provided by CBDT, and the revised return was filed before the defect notification. Therefore, the CPC was not justified in rejecting the Section 80P deduction claim, and the matter was remitted back to the CPC for rectification of the intimation.
Key Issues
Whether the CPC was justified in disallowing Section 80P deduction for AY 2018-19 on the ground of belated filing, when the return was filed within the extended due date notified by CBDT.
Sections Cited
80P, 139(9), 143(1), 139(1), 119(2)
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 09.08.2024 for Assessment Year (AY) 2018-19.
Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is a primary agricultural credit society. The original return of income for AY 2018-19 was filed on 28.02.2019. The same was revised on 31.03.2019. The original return was filed disclosing Nil income after claiming deduction u/s. 80P of the Income Tax Act, 1961 (the Act) of Rs. Othukkungal Service Co-op. Bank Ltd. 41,00,838/-. The CPC issued a defect notice u/s. 139(9) of the Act on 10.04.2019 notifying the defect in the original return of income. In response to the show cause notice it was stated that the defects were already rectified by filing the revised return of income on 31.03.2019. However, the CPC processed the return of income u/s. 143(1) vide intimation dated 20.06.2019 disallowing the claim for deduction u/s. 80P of the Act on the ground that the return of income was filed belatedly.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.
Being aggrieved, the appellant is in appeal before us in the present appeal.
When the appeal was called nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.
It is submitted that there is no delay in filing the return of income as the CBDT vide order passed u/s. 119(2) n F.N. 22S/15/2019/ITA.11 dated 27.02.2019 had extended the date for filing the return of income for AY 2018-19 till 28.02.2019. Therefore, the original return of income was filed within the due date and the lower authorities were not justified in denying the claim for deduction.
On the other hand, the learned Sr. DR placing reliance of the orders of the lower authorities submitted that no interference is requires in this matter.
Othukkungal Service Co-op. Bank Ltd.
From a reading of the intimation, the CPC has disallowed the claim solely on the ground that the return of income was not filed within the due date specified u/s. 139(1) of the Act. In this case, the return of income was filed on 28.02.2019 as extended by the CBDT vide notification (supra). When the original return was in time, the revised return of income was filed before the notification of the defect by the CPC. Therefore, it cannot be stated that the original return of income was non est in the eyes of law. In view of this, the CPC is not justified in rejecting the claim for deduction u/s. 80P of the Act. In the circumstances I remit the matter to the file of the CPC to rectify the intimation.
In the result, the appeal filed by the assessee stands allowed.
Order pronounced in the open court on 10th February, 2025. 10.