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Facts
The assessee, a Co-operative Credit Society, failed to file its income tax returns for AY 2015-2016 and 2016-2017. The Assessing Officer (AO) reopened the case under section 147 and noted significant cash deposits made by the assessee. Consequently, the AO disallowed the deduction claimed under section 80P(2)(a)(i).
Held
The Tribunal held that as per Section 80A(5) of the Income Tax Act, if an assessee fails to make a claim for deduction in its return of income, no deduction shall be allowed. Since the assessee did not file its returns for the assessment years in question, the disallowance of the deduction by the AO and the upholding of this decision by the CIT(A) were found to be correct.
Key Issues
Whether the assessee is entitled to a deduction under section 80P(2)(a)(i) when it failed to file its income tax returns for the relevant assessment years.
Sections Cited
80P(2)(a)(i), 147, 142(1), 144B, 139(1), 80A(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR
Before: SHRI V. DURGA RAO
ORDER PER V. DURGA RAO, J.M. : The above two appeals have been filed by the assessee against the orders both dated 11.06.2024, of the learned CIT(A)-National Faceless Appeal Centre, Delhi, relating to assessment years 2015-2016 and 2016-2017.
2 ITA.No.554 & 555/NAG./2024
Briefly stated facts of the case are that the assessee is a Co-operative Credit Society and engaged in the business of providing credit facilities to it’s members. It is registered under the Maharashtra State Co-Operative Societies Act, 1960. It did not filed it’s return of income during the impugned assessment years 2015-2016 and 2016-2017. The case of the assessee society was selected by Risk Management Strategy formulated by the CBDT through INSIGHT under the Head “RMS Cycle-2 [Non-filing of Return] case. Accordingly, the reopened the case of the assessee for the impugned assessment years u/sec.147 of the Act by taking necessary approval from the Competent Authority. During the course of assessment proceedings, the Assessing Officer noted that the assessee has made cash deposit of Rs.1,82,68,500/- for the A.Y. 2015-2016 and Rs.1,21,38,000/- for the A.Y. 2016-2017. The Assessing Officer issued statutory notices u/sec.142(1) of the Act and in response thereto, the assessee filed it’s reply for the impugned assessment years. After considering the documents furnished by the assessee i.e., copy of balance 3 ITA.No.554 & 555/NAG./2024 sheet & P & L A/c as on 31.03.2016, copy of ITR, computation of income, ledger copy of bank a/c maintained with Umiya Urban Coop Bank Ltd., Copy of registration certificate along with Bye-Laws of society, List of Members and Audit report carried out by Registrar of Cooperative Societies, the Assessing Officer disallowed the claim of deduction u/sec.80P(2)(a)(i) of the Act to the tune of Rs.1,61,488/- for the assessment year 2015-2016 and Rs.2,55,744/- for the assessment year 2016-2017 vide orders passed u/sec.13.03.2023 and 04.03.2024 for the impugned assessment years u/sec.147 r.w.s.144B and 147 r.w.s144 r.w.s.144B of the Act; respectively.
On being aggrieved, the assessee carried the matter in appeals before the learned CIT(A) and the learned CIT(A) upheld the deductions made by the Assessing Officer u/sec.80P(2)(a)(i) of the Act for the impugned assessment years.
The sole substantive ground raised
by the in the instant appeals are that the assessee society was not allowed it’s deduction of claims of Rs.1,61,488/- and Rs.2,55,744/-
4. ITA.No.554 & 555/NAG./2024 u/sec.80P(2)(a)(i) of the Act for the assessment years 2015- 2016 and 2016-2017.
During the course of hearing, at the outset, I drew the attention of both the parties that the assessee did not file it’s returns of income u/sec.139(1) of the Act for the impugned assessment years 2015-2016 and 2016-2017 and according to Sec.80A(5) of the Act – Where the assessee fails to make a claim in his return of income for any deduction u/sec.10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading “C” – deduction in respect of certain incomes” no deduction shall be allowed to him thereunder. Since, in the instant appeals, the assessee did not file it’s returns of income for the impugned assessment years 2015-2016 and 2016-2017, the learned CIT(A) has rightly upheld order of the Assessing Officer. I, therefore, find no infirmity in the order of the learned CIT(A) and confirm the same. Grounds of appeal raised by the assessee in both the appeals are accordingly dismissed.
5 ITA.No.554 & 555/NAG./2024
In the result, both the appeals of the Assessee are dismissed. A copy of this common order be placed in the respective case files. Order pronounced in the open Court on 03.02.2025.