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Facts
The assessee, a Cooperative Society, filed its Income Tax Return for A.Y. 2022-23 beyond the prescribed due date. Due to this delay, the CPC denied the deduction claimed under Section 80P of the Act, amounting to Rs.12,95,254/-. The assessee had filed an application for condonation of this delay, which was still pending with the income-tax authorities.
Held
The Tribunal remitted the issue of the Section 80P deduction claim back to the Jurisdictional Assessing Officer (JAO) for de novo adjudication. This adjudication is to occur only after the JAO decides on the assessee's pending application for condonation of delay under Section 119(2)(b) of the Act, ensuring a reasonable opportunity of hearing is provided to the assessee.
Key Issues
Whether deduction under Section 80P can be denied solely due to a delay in filing the return of income when an application for condonation of delay is pending.
Sections Cited
250, 143(1)(a), 80P, 119(2)(b), 80AC, Chapter VIA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
Assessee by : Smt. Deepa Khare Shri Eknath Abhang Revenue by : (Through Virtual) Date of hearing : 04.02.2026 Date of pronouncement : 16.02.2026 आदेश / ORDER The captioned appeal at the instance of assessee pertaining to the Assessment Year 2022-23 is directed against the order dated 30.12.2024 of Addl/JCIT(A)-1, Hyderabad passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Intimation Order dated 17.02.2023 passed u/s.143(1)(a) of the Act.
The sole grievance is that ld.CIT(A) has erred in confirming the action of the CPC denying deduction u/s.80P of the Act at Rs.12,95,254/- on account of delay in filing the return of income for A.Y. 2022-23.
At the outset, ld. Counsel for the assessee submitted that there is a delay in filing the return of income for A.Y. 2022-23. Assessee has filed an application for condonation of delay u/s.119(2)(b) of the Act on 18.11.2025 and the correspondence is going between the Department and the assessee. Reference also made to the letter issued by the Department on 14.01.2026 asking the assessee to submit the detail of genuine hardship/reasons which prevented the assessee to file the return of income within the prescribed time limit. Prayer made to restore the issues to the file of ld. Jurisdictional Assessing Officer so that due disposal of the assessee’s application u/s.119(2)(b) of the Act is made by ld. JAO.
On the other hand, ld. Departmental Representative supported the order of ld.CIT(A).
I have heard the rival contentions and pursued the record placed before me. Admittedly, the assessee is a Cooperative Society and has filed the return of income for A.Y. 2022-23 on 10.12.2022 which is beyond the prescribed extended due date of 07.11.2022. Deduction u/s.80P of the Act under Chapter VIA at Rs.12,95,254/- has been denied on account of delay in filing the return of income and invoked section 80AC of the Act. Assessee has filed an application for condonation of delay u/s.119(2)(b) of the Act and the same is still pending before the income-tax authorities. Letter dated 14.11.2026 issued by the Income Tax Officer, Ward-1, Sangli asking the assessee to provide the detail of genuine Sahakar Bhushan Vasant Sarva Seva Sahakari Society Ltd. hardship/reasons and also the copy of Audit Report to be furnished. I also observe that the assessee in its application dated 14.01.2026 has submitted that due to delay in getting the statutory audit of the society on account of objection by another auditor and upon the instruction of Joint Registrar the Audit Report has been finalised on 30.11.2022 and immediately thereafter assessee has filed the return of income.
Considering the reasons mentioned in the application and also considering the assessee’s application u/s.119(2)(b) of the Act is pending and that the assessee is quite hopeful to succeed in getting the delay in filing the return of income condoned, I deem it appropriate to remit the issues raised in the instant appeal about the claim of deduction under Chapter VIA/80P of the Act to the file of ld. Jurisdictional Assessing Officer for denovo adjudication to be carried out after disposing of the assessee’s application u/s.119(2)(b) of the Act. Needless to mention that ld.JAO shall decide the issue in accordance with law after providing reasonable opportunity of hearing to the assessee. Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.JAO and should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 16th day of February, 2026.