NO H 1043 BHUJABALAPATNAM PRIMARY AGRICULTURE COOPERATIVE CREDIT SOCIETY LTD,KRISHNA DIST vs. INCOME TAX OFFICER, WARD-1, GUDIWADA

Facts

The assessee, a Primary Agricultural Cooperative Society, did not file its Income Tax Return for AY 2017-18 by the due date under Section 139(1). After receiving notices under Sections 142(1) and 144, the assessee filed a belated return claiming deduction under Section 80P(2)(a)(i), but the Assessing Officer denied it, treating the belated return as invalid for claiming the deduction and making an addition of Rs.12,71,701/-.

Held

The Tribunal condoned the delay in filing the appeal, finding the reasons genuine and bonafide. On merits, it held that for AY 2017-18, the condition of filing the return by the due date under Section 139(1) was not mandatory for claiming Section 80P deduction, as strict provisions of Section 80AC (pre-amendment) did not apply to Section 80P for that assessment year. Since the assessee filed the return and claimed the deduction before the assessment was completed, the deduction under Section 80P(2)(a)(i) should be allowed, and the addition made by the A.O. was set aside.

Key Issues

Whether the deduction under Section 80P(2)(a)(i) can be denied solely because the return of income was filed belatedly, but before the completion of assessment, for Assessment Year 2017-18.