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Facts
The assessee, a cooperative society, failed to file its return of income for AY 2019-20. Upon receiving information about substantial cash deposits, the AO initiated proceedings under sections 148A and 148 of the Income Tax Act. The assessee subsequently filed a return declaring Nil income after claiming a deduction under section 80P, which was denied by the AO and upheld by the CIT(A).
Held
The Tribunal noted that the assessee has filed a petition under section 119(2) for condonation of delay, which is pending. The Tribunal held that the allowability of the deduction under section 80P should be decided based on the outcome of the condonation petition.
Key Issues
Whether the deduction under section 80P is allowable when the return of income was filed beyond the prescribed time, and if a pending petition for condonation of delay affects this decision.
Sections Cited
148A, 148, 147, 139(1), 80P, 80AC, 250, 119(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & MS. PADMAVATHY.S
SS58SLMDTGOV HR SEC SCHOOL The Income Tax Officer, Staff Co-op. Thrift and Credit Society Vs. Ward-1(1), Ltd., Salem. 30/19, Kalaimagal Street, Swarnapuri, Alagapuram S.O., Salem – 636 004. PAN: AAQAS 2028F (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� की ओर से/ Appellant by : Mr. P.M. Kathir, Advocate ��थ� की ओर से /Respondent by : Ms. R. Anitha, Addl.CIT सुनवाई की तारीख/Date of Hearing : 11.02.2026 घोषणा की तारीख /Date of Pronouncement : 16.02.2026 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 29.09.2025 for Assessment Year (AY) 2019-20.
The assessee is a registered cooperative society and its members are employees and ex-employees of Government schools of Salem and Namakkal
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Districts. The assessee did not file the return of income for A.Y 2019-20. The A.O received information that the assessee has deposited cash of Rs.16,62,237/- in its bank account with Indian Bank and also cash deposit of Rs. 11,45,99,417/- with the Salem District Central Cooperative Bank. The AO accordingly issued a notice u/s. 148A (b) of the Act and passed the order u/s. 148A(d) of the Act. The A.O subsequently issued a notice u/s. 148 of the Act, in response to which the assessee filed the return of income declaring Nil income after claiming deduction u/s. 80P of the Act. The A.O completed the assessment u/s. 147 of the Act denying the deduction claimed by the assessee on the ground that the assessee has not filed the return of income within the period specified u/s. 139(1) of the Act. Aggrieved, the assessee filed further appeal before the CIT(A), who confirmed the decision of the A.O by placing reliance on Section 80AC of the Act. The assessee is in appeal before the Tribunal against the order of the CIT(A).
We have heard the parties, and perused the material available on record. During the course of hearing, it is brought to our attention that the assessee has filed a petition u/s. 119(2) of the Act for condonation of delay in filing the return of income and the same is pending for disposal. Accordingly, the Ld. AR prayed that the issue may be remitted back to the A.O to be decided upon receipt of the condonation. Considering the facts and circumstances, we are of the view that the allowability of deduction u/s. 80P is to be decided based on the outcome of the condonation petition filed by the assessee. Therefore, we are remitting the appeal back to the A.O to consider the allowabililty of deduction u/s. 80P of the Act based on the outcome of the condonation
:- 3 -: petition filed by the assessee. Needless to say that the assessee be given reasonable opportunity of being heard. It is ordered accordingly.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on 16th day of February, 2026 at Chennai.