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Facts
A rectification intimation under section 154 was issued by the CPC to the assessee, a co-operative society, for AY 2019-20, denying deduction u/s 80P(2)(d) for Rs.98.04 Lacs. The denial stemmed from the belief that the due date for filing the return was 31-08-2019, while the assessee contended it was 31-10-2019 due to the mandatory statutory audit under the Punjab State Co-operative Societies Act, 1961. The CIT(A) had rejected the assessee's claim, stating that the audit for AYs 2018-19 and 2019-20 was not performed.
Held
The Tribunal held that a co-operative society is required to get its accounts audited under Section 48 of the Punjab State Co-operative Societies Act, 1961. According to Explanation-2(a)(ii) to Section 139(1) of the Income Tax Act, the due date for filing the return for such entities is 31st October. Since the assessee filed its return on 31-10-2019, which falls within the prescribed due date, the deduction u/s 80P(2)(d) is allowable, and the AO was directed to re-compute the income.
Key Issues
Whether the due date for filing the return of income for a co-operative society, mandated to undergo statutory audit, is 31st August or 31st October, thereby affecting its eligibility for deduction under Section 80P(2)(d).
Sections Cited
Section 154, Section 80P(2)(d), Explanation-2(a)(ii) to Section 139(1), Section 48 of Punjab State Co-operative Societies Act, 1961
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा"रण वष" / Assessment Year: 2019-20) Madanpur Co-operative House ITO Ward 6(1) Chandigarh Building Society Limited Aaykar Bhawan, Mohali बनाम/ Vs. 116/1st Floor, Phase IV, SAS Nagar, Punjab - 160059 "थायीलेखासं./जीआइआरसं./PAN/GIR No. AACAM-4737-B (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant by : Sh. Ajay Jain (CA) – Ld. AR ""थ"कीओरसे/Respondent by : Sh. Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 10.02.2026 घोषणाकीतारीख /Date of Pronouncement : 10.02.2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019- 20 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 04-10-2024 in the matter of a rectification intimation issued by CPC u/s 154 on 28-12-2020. Having heard rival submissions, the appeal is disposed-off as under.
The sole grievance of the assessee is denial of deduction u/s 80P(2)(d) for Rs.98.04 Lacs on the allegation that the due date for 2 filing of return of income was 31-08-2019 as against the contention of the assessee that due date in its case would be 31-10-2019. Since the return of income was filed on 31-10-2019 which is within due date, the deduction would be an allowable deduction to the assessee. The contention of the society stem from the fact that it being a co-operative society, is required to get its accounts audited by Inspector (Audit) of