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Facts
The assessee, a Primary Agricultural Cooperative Credit Society, filed its Return of Income (RoI) for AY 2020-21 showing NIL income after claiming deduction under Section 80P. The CPC processed the RoI and denied the deduction, stating the return was filed belatedly. The assessee had obtained an order condoning the delay in filing the RoI from the Ld.CCIT. However, the Ld.CIT(A) dismissed the appeal, holding that no RoI was filed after the condonation order.
Held
The Tribunal held that the Ld.CIT(A) erred in not appreciating the order passed by the Ld.CCIT, Coimbatore, for condoning the delay in filing the RoI. Once the delay was condoned, the basis for the CPC denying the deduction under Section 80P was vacated.
Key Issues
Whether the Ld.CIT(A) was justified in dismissing the appeal when the delay in filing the Return of Income was already condoned by the competent authority.
Sections Cited
80P, 143(1), 119(2)(b), 139(1)
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the assessee Primary Agricultural Cooperative Credit Society (PACCS) against the order of the Learned Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-2, (hereinafter referred to as “the Ld.CIT(A)”), Hyderabad, dated 29.09.2025 for the Assessment Year (hereinafter referred to as "AY”) 2020-21.
The main grievance of the assessee is against the action of the Ld.CIT(A) dismissing the appeal preferred by the assessee before him.
The brief facts of the case are that the assessee is a Primary Agricultural Cooperative Credit Society (PACCS) which filed its return of income (RoI/ITR) on 20.03.2021 showing ‘NIL’ income after claiming deduction u/s.80P of the Income Tax Act, 1961 (hereinafter referred to as "the Act”) for AY 2020-21. The RoI was processed by the CPC and intimation u/s.143(1) of the Act was passed on 25.11.2021 denying the claim made u/s.80P of the Act, on the ground that assessee belatedly filed its ITR. Aggrieved the assessee filed appeal before the Ld.CIT(A) and brought to his notice that the assessee had filed an application for condoning the delay in filing of ITR/RoI before the First Appellate Authority [Ld.CCIT, Coimbatore] who vide order u/s.119(2)(b) of the Act dated 21.12.2023 was pleased to condone the delay in filing of the ITR/RoI and placed a copy of the ibid order before the Ld.CIT(A).
However, the Ld.CIT(A) dismissed the appeal of the assessee by observing as under:
6.3. The appellant has stated that the delay in filing of Return of Income has been condoned by a subsequent Order. However, it is found that no Return of Income consequent to such Order has been filed by the appellant nor any Order has been passed till date. Also, this being a separate proceeding, as such, at the time of processing of Return of Income by the CPC, the delay in filing of Return of Income existed and therefore the denial of deduction u/s 80P of the Act is found to be correct and thus the same is confirmed.
Aggrieved by the aforesaid action of the Ld.CIT(A), the assessee is before this Tribunal.
We have heard both the parties and perused the material available on record. It is noted that the assessee is a Primary Agricultural Cooperative Credit Society and its books of accounts are required to be statutorily audited under the Tamil Nadu Cooperative Societies Act, 1983.
In the assessee’s case, the statutory audit for the period from 01.04.2019 to 31.03.2020 was completed only on 26.09.2020, copy of which was received by the assessee Society only on 22.02.2021, which event was admittedly after the expiry of the due date specified u/s.139(1) of the Act. Hence, the assessee filed its return on 20.03.2021 admitting ‘NIL’ tax after claiming deduction u/s.80P of the Act which was processed by the CPC, Bangalore and vide intimation order dated 25.11.2021 was pleased to deny the deduction claimed u/s.80P of the Act on the ground that the assessee failed to file the ITR/RoI within the due date specified u/s.139(1) of the Act i.e. before 15.02.2021 (extended time). Therefore, the assessee took steps to condone the delay in filing of ITR/RoI by filing application before the competent authority i.e. the Ld.CCIT, Coimbatore, who allowed the same and passed the order u/s.119(2)(b) of the Act condoning the delay in filing of the ITR/RoI. In such an event, the (AY 2020-21) S55 Keerippatty Primary Agricultural – Co-op. Credit Society Ltd. foundation on the basis of which the CPC denied deduction u/s.80P of the Act stands vacated and hence, there was no fetter to grant the claim u/s.80P of the Act existing before the Ld.CIT(A) while it was deciding the appeal before him, and ought to have been granted. Therefore, the Ld.CIT(A) has erred in not appreciating the order passed by the Ld.CCIT, Coimbatore, for condoning the delay in filing of the RoI by the assessee dated 20.03.2021. Therefore, we set aside the impugned order of the Ld.CIT(A) and direct the Jurisdictional Assessing Officer (JAO) to process the RoI filed by the assessee as on 20.03.2021 ignoring the delay in filing the RoI within the due date u/s.139(1) of the Act in accordance to law.
Needless to say that assessee may be heard before passing the assessment order.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 04th day of February, 2026, in Chennai.