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Facts
The assessee, a Co-operative Society, filed its return for AY 2019-20 on 10.06.2020, claiming deduction u/s 80P. The CPC processed the return u/s 143(1) and disallowed the deduction on the grounds that the return was filed beyond the due date prescribed u/s 139(1), citing Section 80AC. The CIT(A) confirmed this disallowance. There was a delay of 474 days in filing the appeal before the Tribunal.
Held
The Tribunal condoned the delay in filing the appeal, citing the appellant's ignorance of the NFAC order as a reasonable cause. The Tribunal also noted that the Chief Commissioner of Income Tax had condoned the delay in filing the return of income. Consequently, the matter was remanded to the AO/CPC to amend the intimation u/s 143(1) in light of the Chief Commissioner's order.
Key Issues
Whether the deduction u/s 80P can be denied for filing the return beyond the due date, especially when the delay in filing the return was condoned.
Sections Cited
139(1), 139(4), 143(1), 80P, 80AC, 119(2)(b), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI INTURI RAMA RAO
PER INTURI RAMA RAO, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee directed against the Order of the National Faceless Appeal Centre, Delhi (hereinafter called as ‘NFAC’) dated 22.05.2024 for the assessment year 2019-20.
The assessee raised the following grounds of appeal: “1) The Order of the Ld. CIT(A)-NFAC, Delhi, is against the facts of the case and is bad in law.
3) The Ld. CIT(A) could not appreciate that the audit of Accounts by the State Govt. was completed only on 23-03-2020 and the Return was filed on 10-06-2020 (in-spite of Covid-19 lockdown in force and the Pandemic at its peak) 4) The Ld. CIT(A) failed to accept the maxim "Les non congit Ad impossibilia impossibilia"- impossible of performance cannot be enforced. 5) The Ld. CIT (A) ought to have appreciated that though the provisions of Sec.80AC mandate the denial of deduction u/s 80P there had been no corresponding enabling provision u/s 143(1)(a) and hence no such adjustment could be made by CPC for AY 2019- 20 and the amendment has effectively come in only by Finance Act, 2021 which reads as under: "(v) disallowance of deduction u/s 10AA or under any of the provisions of Chapter VI-A under the heading "C-Deductions in respect of certain incomes" if the return is furnished beyond the due date specified u/s 139(1) or ...."
6) The following two case laws of the Honourable co-ordinate benches of the Tribunal are submitted. a.
"C" Bench dt. 31-05-2022 (TPD 101 Uthangarai Milk Producers Co-operative Society Ltd.) b.
"A" Bench dt. 12-10-2022 (Chennai Kulalars Co-operative Credit Society Ltd.) For these and other grounds of appeal that may be adduced at the time of hearing it is humbly prayed that the deduction claimed u/s 80P for AY 2019-20 may please be granted.
For K 2069 Veerakeralam Urban Co-op Credit Society Ltd
The brief facts of the case are as under:
The appellant is a Co-operative Society incorporated under the provisions of the Tamil Nadu Co-operative Societies Act, 1983. The 3 -: return of income for the Assessment Year 2019-20 was filed on 10th June, 2020 disclosing Nil income after claiming deduction u/s 80P of the Act. The said return of income was processed by CPC u/s 143(1) of the Act vide intimation dated 30th September, 2020 after making prima facie adjustment by disallowing the claim for deduction u/s 80P of the Act for the reason that the return of income was not filed within due date prescribed for filing return of income u/s 139(1) of the Act.
Being aggrieved by the above intimation, an appeal was preferred before ld. CIT(A), who vide impugned order confirmed the prima facie adjustment of disallowance of the claim for deduction u/s 80P of the Act placing reliance on the provisions of section 80AC of the Act.
Being aggrieved, the appellant is in appeal before us.
At the outset, we find that there is a delay in filing the present appeal by 474 days. The appellant society filed an affidavit seeking condonation of the delay on the ground that the delay had occurred since the appellant society was not aware of the order passed by NFAC u/s 250 of the Act. The appellant society had become aware of the order passed u/s 250 of the Act only when the auditor opened the portal for the purpose of filing, the return of income for the Assessment Year 2025-26.
We are considered opinion that the ignorance of the appellant society about the order passed u/s 250 of the Act constitutes a reasonable and sufficient cause for the delay. Further, keeping in view well-settled position law that the period of limitation for filing an appeal should be reckoned from the date when the appellant society had the knowledge of impugned order, it is a fit case to condone the delay.
Accordingly, we condone the delay and admit the appeal for adjudication on merits.
The ld. Counsel for appellant society submitted that the delay for filing the return of income was condoned by ld. Chief Commissioner of Income Tax, Coimbatore in exercise of the powers vested with him u/s 119(2)(b) of the Income Tax Act vide order dated 21st January, 2026 and therefore, prays for remand of the matter to the file of Assessing Officer/ CPC to pass a rectification order in the light of the impugned order passed by the Chief Commissioner of Income Tax condoning the delay in filing the return of income.
On other hand, ld. Sr. DR has no serious objection to remand the matter to the file of AO.
5 -: 11. We heard the rival submissions and perused the material on record. The CPC while processing the return of income u/s 143(1) of the Act had made a prima facie adjustments by disallowance of claim deduction u/s 80P of the Act solely on the ground that the return of income was not filed within a due date specified u/s 139(1) of the Act in view of specific provisions of section 80AC of the Act. Now, the ld. Chief Commissioner of Income Tax of Coimbatore, in exercise of powers vested with him u/s 119(2)(b) of the Act had condoned the delay in filing the return of income and therefore, we are considered opinion that the matter required the remand to file of AO/CPC to amend the intimation u/s 143(1) of the Act in light of the order passed by ld. Chief Commissioner of Income Tax. Accordingly, the matter is remanded back to the file of AO, CPC to amend intimation u/s 143(1) of the Act in the light of order passed ld. Chief Commissioner of Income Tax.
In the result, appeal filed by the assessee is partly allowed for statistical purposes.
Order pronounced on the 4th day of March, 2026 in Chennai.
Sd/- Sd/- (जॉज� जॉज� के) (इंटूर� रामा राव) (GEORGE GEORGE K) (INTURI RAMA RAO) उपा�� / VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER