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Facts
The appellant, a co-operative society, filed a belated Nil income return for AY 2018-19, claiming deduction under Section 80P of the Income Tax Act. The Assessing Officer disallowed the Section 80P deduction due to the belated filing, and the assessee's application for condonation of delay was subsequently rejected by the CIT (Hqrs.) (Tech).
Held
The Tribunal upheld the disallowance of the Section 80P deduction, noting that the CIT (Hqrs.) (Tech) had already rejected the assessee's application for condonation of delay in filing the return. Consequently, the Tribunal found no merit in the assessee's appeal.
Key Issues
Whether the disallowance of Section 80P deduction is valid for a belatedly filed return, and whether the rejection of the condonation of delay by the CIT (Hqrs.) (Tech) was justified.
Sections Cited
80P, 143(1), 80AC, 119(2)(b), 139(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 24.04.2024 for Assessment Year (AY) 2018-19.
Brief facts of the case are that the appellant is a co-operative society registered the Kerala Co-Operative Societies Act, 1969. It is engaged in the business of extending credit facilities to its members. The appellant filed return of income for AY 2018-19 on 15.02.2019 disclosing Nil income after claiming deduction of Rs. 1,14,51,744/- Elanthoor Service Co-op. Bank Ltd. u/s. 80P of the Income Tax Act, 1961 (the Act). The said return of income was processed u/s. 143(1) of the Act vide intimation dated 29.06.2019 by determining the income at Rs. 1,14,51,774/- by disallowing the deduction u/s. 80P of the Act, as the return was filed belatedly.
Being aggrieved, the appellant is in appeal before us in the present appeal.
The learned A.R. submitted that the delay in filing the return of income was not attributable to the assessee and had occurred on account of factors which are beyond the control of the assessee. In the circumstances the disallowance of deduction u/s. 80P of the Act by virtue of section 80AC is arbitrary and illegal.
On the other hand, the learned Sr. DR submitted that the learned CIT, (Hqrs.) (Tech) u/s. 119(2)(b) of the Act vide order dated 07.08.2024 had rejected the application for condonation of delay and, therefore, it is prayed that the appeal of the assessee be dismissed.
We have heard the rival contentions of both the parties and perused the material available on record. We find that the AO had disallowed the claim for deduction u/s. 80P of the Act primarily on the ground that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act. Now the learned CIT, in exercise of the powers vested with him u/s. 119(2)(b) of the Act and Elanthoor Service Co-op. Bank Ltd. also read with Board circular No. 13/2023 dated 26.07.2023 had disposed of the condonation application of the assessee, as such we do not find any merit in the appeal filed by the assessee.
In the result, the appeal filed by the assessee stands dismissed.
Order pronounced in the open court on 21st January, 2025. 8.