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Facts
The assessee, an agricultural cooperative society, did not file its return of income. The Assessing Officer (AO) reopened the assessment after noticing cash deposits and denied the deduction under Section 80P because the return was not filed within the time specified by Section 139(1). The CIT(A) confirmed this disallowance.
Held
The Tribunal noted that the assessee raised legal contentions that were not properly adjudicated by the CIT(A). The CIT(A) had dismissed these grounds stating the assessee failed to support its claim. The Tribunal decided to give the assessee another opportunity to present its case.
Key Issues
Whether the assessee is eligible for deduction under Section 80P when the return was filed belatedly, and whether the legal grounds raised by the assessee were properly adjudicated by the lower authorities.
Sections Cited
250, 148, 80P, 139(1), 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & MS. PADMAVATHY.S
आदेश / O R D E R
PER PADMAVATHY.S, A.M: This appeal by the assessee is against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi, (in short "CIT(A)") passed u/s. 250 of the Income Tax Act, 1961 (in short "the Act") dated 31.08.2025 for Assessment Year (AY) 2019-20.
The assessee is a agricultural cooperative society registered under Tamilnadu Cooperative Societies Act. The assessee did not file the return of TNSPL 52 Kayathar Primary Agriculture Co-op Society :- 2 -:
income for the year under consideration. The AO noticed that the assessee has made certain cash deposits into the bank account and therefore reopened the assessment by issue of notice u/s.148 of the Act. The assessee in response to the notice u/s.148 filed the return of income and in the said return of income the assessee claimed deduction u/s.80P of the Act. The AO denied the deduction claimed by the assessee for the reason that the assessee did not file the return of income within the time specified u/s.139(1) of the Act. Accordingly, the AO held that as per the provisions of section 80AC the assessee is not entitled for deduction u/s.80P of the Act. The CIT(A) confirmed the disallowance. The assessee in appeal against the order of the CIT(A) before the Tribunal.
We heard the parties and perused the material on record. The ld AR during the course hearing submitted that the assessee has raised certain legal contentions which have not been properly adjudicated by the CIT(A). On perusal of the order the CIT(A), we notice that the CIT(A) has dismissed the legal grounds stating that the assessee has failed to back up its claim during the appellate proceedings (refer page 12 para 5.3.1 of CIT(A)'s order). Considering the overall facts and circumstances peculiar to the case, we are inclined to give one more opportunity to the assessee to make contend the legal issues before the CIT(A). Accordingly, we remit the appeal back to the CIT(A) with a direction to adjudicate the legal grounds contended by the assessee through a speaking order in accordance with law. The assessee is directed to make the necessary submissions in support of the legal contentions and cooperate with appellate proceedings. It is ordered accordingly.
In result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on 25th day of February, 2026 at Chennai.