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Facts
The assessee, a Primary Agricultural Cooperative Credit Society, filed its Income Tax Return for AY 2018-19 belatedly on 31.03.2019, claiming a deduction under Section 80P of Rs. 22,40,060/-. The CPC disallowed this deduction under Section 143(1) due to the belated filing, a decision upheld by the CIT(A). The assessee's CEO experienced health issues, leading to a delay in filing both the original ITR and the appeal to the ITAT; the delay in filing the ITR was subsequently condoned by the CCIT under Section 119(2)(b).
Held
The Tribunal condoned the 157-day delay in filing the appeal before it due to reasonable cause. It held that since the Chief Commissioner of Income Tax (CCIT) had already condoned the delay in filing the original return of income for AY 2018-19, the assessee is entitled to claim the deduction under Section 80P of the Act. The AO/CPC was directed to allow the deduction.
Key Issues
Whether the assessee is eligible for deduction under Section 80P of the Income Tax Act when the Income Tax Return was filed belatedly but the delay in filing the return was subsequently condoned by the CCIT under Section 119(2)(b). Also, whether the delay in filing the appeal before the ITAT should be condoned.
Sections Cited
143(1), 80P, 119(2)(b), 139(1), 44AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM
Before: SHRI K. NARASIMHA CHARY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
आदेश /O R D E R
PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER:
This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals)/Addl/JCIT (A)-2, Coimbatore, [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No.
I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited ITBA/APL/S/250/2023-24/1062944245(1) dated 19.03.2024 for the A.Y.2018-19 arising out of the intimation passed under section 143(1)of Income Tax Act, 1961 (in short ‘Act’) dated 16.10.2019.
2. At the outset, it is noticed from the appeal record that there is a delay of 157 days in filing the appeal before the Tribunal. Explaining the reasons for belated filing of the appeal, the Ld. AR drew our attention to the affidavit filed by the assessee along with a petition seeking for condonation of delay and read out the contents of the petition which is as under:
“1. The learned Commissioner of Income Tax (Appeals) passed the order on19.03.2024. As such, the appeal against this order ought to have been filed on or before 18.05.2024. However, the appeal could be filed only on 22.10.2024 resulting in a delay of 157 days in filing the appeal.
Sri A. Jagadeswara Rao is the CEO of the appellant society and he is the authorized signatory. He is suffering from Ischemic heart disease and was not well during the relevant period. He was under treatment and bed rest as advised by the doctor during the period from 01.05.2024 to 30.06.2024. As such, he could not attend to any other affairs during this period.
3. The issue in the case of the appellant was that the deduction claimedu/s80P was not allowed in the intimation passed on 16.10.2019 on the ground that the return of income for the relevant A.Y.2018-19 was not filed within the due date. The learned Commissioner of Income Tax (Appeals) dismissed the appeal on the same ground. The appellant was advised by its auditor that unless and until the delay in filing the return was condoned, it would not getany relief even before the hon'ble ITAT.
4. As soon as Sri A. Jagadeswara Rao recovered, he immediately took steps and filed application before the learned CCIT, Hyderabad u/s 119(2)(b) of the Act on 01.07.2024. The learned CCIT, Hyderabad passed the order on 25.09.2024 by condoning the delay in filing the return of income. At that period of time,the CEO Sri A. Jagadeeswara Rao was not well again. As such, the appeal could not be filed before the hon'ble ITAT immediately after receiving the order of the learned CCIT (Exemptions). It took nearly one month for Sri A.Jagadeswara Rao to recover. As soon as Page No. 2 I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited his condition improved, Sri A.Jagadeswara Rao took necessary steps and filed the appeal against the order of the learned Commissioner of Income Tax (Appeals) before the hon'ble ITAT on 22.10.2024.
5. Thus, the delay in filing the appeal was only due to the reasons mentioned above which were beyond the control of the appellant. The delay is neither intentional nor deliberate. Therefore, the appellant prays the hon'ble ITAT to kindly condone the delay and pass appropriate orders in the interest of rendering substantial justice.”
On perusal of the contents of the affidavit filed by the assessee and medical record as well as the submission of the Ld. AR, we find that the assessee is prevented by a reasonable and sufficient cause in filing the appeal beyond the prescribed time limit with a delay of 157 days. Therefore, we hereby condone the delay of 157 days in filing the appeal before the Tribunal and proceed to adjudicate the appeal on merits in the following paragraphs.
Brief facts of the case are that, assessee is a Primary Agricultural Cooperative Credit Society filed its return of income on 31.03.2019 for the A.Y. 2018-19 admitting a total income of Rs. 22,40,060/-. Assessee also claimed deduction under section 80P of the Act for Rs. 22,40,060/-. It was noticed that assessee has filed the return of income on 31.03.2019 which is beyond the extended date for filing of return of income i.e., 30.09.2018. The return was summarily processed by CPC, Bangalore under section 143(1) of the Act by disallowing the deduction claimed by the assessee under section 80P of the Act.
Page No. 3
I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited 5. Aggrieved by the intimation passed by CPC, Bangalore, assessee filed an appeal before Ld. CIT(A). Considering the similar submissions as made by the assessee before the Ld.AO, the Ld. CIT(A) dismissed the appeal of the assessee.
Aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us, by raising following grounds of appeal: - “1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case.
2. The learned Commissioner of Income Tax (Appeals) is not justified in deciding the appeal ex-parte.
3. The learned Commissioner of Income Tax (Appeals) ought to have held that the disallowance of deduction of Rs.22,40,060 claimed bythe appellant u/s 80P in the Intimation u/s 143(1) of the Act was outside the scope of adjustments that can be made while processing the return of income and issuing the Intimation u/s 143(1) of the Act.
4. Without prejudice to the above, the learned Commissioner of Income Tax (Appeals) ought to have held that the appellant is eligible to claim the deduction of Rs.22,40,060 u/s 80P of the Act.
Any other grounds may be urged at the time of hearing.”
The only issue is with respect to disallowance of deduction of Rs.22,40,060/- claimed by the assessee under section 80P of the Act in the intimation passed under section 143(1) of the Act.
In this connection, at the outset, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that the assessee has filed the condonation of Page No. 4
I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited delay petition under section 119 (2)(b) of the Act citing the reasons for delay in filing the appeal. Ld.AR further submitted that the CCIT, Hyderabad, vide DIN & Order No. ITBA/COM/F/17/2024-25/1069102950(1) dated 25.09.2024 in accordance with CBDT Circular No. 13/2023 dated 26.07.2023 condoned the delay for filing the return of income for the A.Y. 2018-19. Copy of the approval order is extracted below: -
Page No. 5
I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited
Per contra, Ld. DR relied on the orders of the Ld. CIT(A).
We have heard both the sides and perused the material available on record. It is an admitted fact that the CCIT, Hyderabad has granted relief by condoning the delay to the assessee for belatedly filing the return of income for the A.Y.2018-19. In these circumstances, we are of the considered view that the assessee is entitled for claiming the deduction under section 80P of the Act amounting to Rs. 22,40,060/-. We therefore direct the Ld. AO / CPC, Bangalore to allow the deduction claimed by the assessee while filing the return of income for the A.Y. 2018-19 as the delay in filing return of income
Page No. 6
I.T.A.No.439/VIZ/2024 The Vazrapukotturu Primary Agricultural Cooperative Credit Society Limited is duly condoned by the CCIT, Hyderabad. Since the appeal is decided in favour of the assessee, Ground Nos. 2 and 3 raised by the assessee are not adjudicated.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 28th January, 2025.