THE CUTTACK URBAN CREDIT COOPERATIVE SOCIETY LIMITED,CUTTACCK vs. ITO WARD 1(1), CUTTACK

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ITA 298/CTK/2025Status: DisposedITAT Cuttack15 July 2025AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAJESH KUMAR (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that Section 80AC, requiring the filing of a regular return for 80P deduction, came into effect from 01.04.2018 and thus did not apply to the assessment years 2015-2016 and 2017-2018. Therefore, the assessee is entitled to claim the deduction.

What were the facts?

The assessee filed appeals against orders denying deduction under section 80P. The original returns were not filed, and returns were filed in response to a notice under section 148. The AO denied the deduction based on the absence of a claim in the original return.

What were the issues?

Whether the assessee is eligible for deduction u/s 80P when the return was filed in response to a notice u/s 148 and not as a regular return, considering the provisions of Section 80AC.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80AC,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 15/07/2025Pronounced: 15/07/2025

आदेश / O R D E R Per Bench : These are two appeals filed by the assessee against the separate orders of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 21.03.2025, for the assessment years 2015-2016 & 2017- 2018. 2. It was submitted by the ld AR that the AO had denied the assessee the benefit of deduction u/s.80P of the Act on the ground that the original return had not been filed and there was no claim in the original return. It was the submission that the assessee had admittedly not filed regular return and had filed the return in response to the notice issued u/s.148 of the Act. It was the submission that the requirement of filing of regular return was made mandatory for the purpose of claiming deduction u/s.80P of the Act as per the provisions of Section 80AC of the Act w.e.f. 01.04.2018. It was the submission that the impugned assessment year before the Tribunal are A.Y.2015-2016 & 2017-2018. It was the submission that the AO may be directed to recompute the income of the assessee and grant the assessee the benefit of deduction u/s.80P of the Act as per law for both the years under consideration.

4.

In reply, ld Sr DR submitted that the assessee has not claimed deduction u/s.80P of the Act in respect of the income generated from members. It was the submission that for the assessment year 2017-2018 in relation to write off of bad debts details were not produced before the AO.

5.

We have considered the rival submissions. A perusal of the provisions of Section 80AC of the Act for requirement of filing return for the purpose of deduction u/s.80P of the Act came into statute book w.e.f. 01.04.2018. The impugned assessment year before the Tribunal are A.Ys.2015-2016 & 2017-2018. The said amended provisions of Section 80AC of the Act would not be applied to the assessment years 2015-2016 & 2017-2018. Consequently the assessee is entitled to claim deduction u/s.80P of the Act even in the return filed in response to the notice issued u/s.148 of the Act for the assessment year 2015-2016 and for the assessment year 2017-2018 as the amendment is effective from 01.04.2018. This being so, the assessment order and the order of the ld. CIT(A) are set aside and the issues in this appeal are restored to the file of the AO for readjudication. The AO shall grant the assessee the benefit

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