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Facts
The Principal Commissioner of Income Tax appealed against the ITAT's order which had allowed a co-operative bank to claim deduction under Section 80P of the Income Tax Act. The revenue contended that the assessee was not entitled to this deduction as no valid return was filed within the statutory time.
Held
The High Court, following its earlier judgment, held that a claim for deduction under Section 80P is permissible only if the return of income is filed within the time prescribed under Sections 139(1), 139(4), 142(1), or 186 of the Act. Since the assessee had not filed a valid return within the statutory period, the deduction was disallowed, and the Tribunal's order was set aside.
Key Issues
Whether a co-operative society is entitled to claim deduction under Section 80P of the Income Tax Act if it has not filed its return of income within the statutory time limits as per Section 80A(5).
Sections Cited
Section 80P, Section 80A(5), Section 139(1), Section 139(4), Section 142(1), Section 186
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. FRIDAY, THE 2ND DAY OF AUGUST 2024 / 11TH SRAVANA, 1946 ITA NO. 11 OF 2019 AGAINST THE ORDER/JUDGMENT DATED 09.07.2018 IN ITA NO.200 OF 2018 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/RESPONDENT THE PRINCIPAL COMMISSIONER OF INCOME TAX KOTTAYAM. BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT/ASSESSEE M/S.THE PAZHAVANGDIKKARA SERVICE CO-OPERATIVE BANK LTD RANNI,PATHANAMTHITTA-689673. BY ADVS. SRI.ANIL D. NAIR SRI.R.SREEJITH SRI.ACHYUT K PADMARAJ SHRI.GOKULRAJ L. SMT. ARYA ANIL THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 02.08.2024, ALONG WITH ITA.15/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
ITA Nos.11 and 15 of 2019 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE DR. JUSTICE A.K.JAYASANKARAN NAMBIAR & THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M. FRIDAY, THE 2ND DAY OF AUGUST 2024 / 11TH SRAVANA, 1946 ITA NO. 15 OF 2019 AGAINST THE ORDER/JUDGMENT DATED IN ITA NO.201 OF 2018 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/RESPONDENT/RESPONDENT THE PRINCIPAL COMMISSIONER OF INCOME TAX KOTTAYAM. BY ADVS. SRI.P.K.R.MENON,SENIOR COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/S: THE PAZHAVANGADIKKARA SERVICE CO-OPERATIVE BANK LTD. , PAZHAVANGADIKKARA P.O, RANNI,PATHANAMTHITTA-689673. BY ADVS. SRI.ANIL D. NAIR SRI.SREEJITH R.NAIR SRI.ACHYUT K PADMARAJ SHRI.GOKULRAJ L. SMT. ARYA ANIL THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 02.08.2024, ALONG WITH ITA.11/2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
ITA Nos.11 and 15 of 2019 3 J U D G M E N T ============ Dr. A.K.Jayasankaran Nambiar, J. The issue involved in these I.T.Appeals pertains to the entitlement of the respondent-assessee to the benefit of the deduction under Section 80P of the Income Tax Act ('the Act' for short). 2. The learned Standing Counsel for the Income Tax Department, Sri.Jose Joseph, brings to our notice a decision of this Court dated 14.03.2023 in I.T.Appeal No.120 of 2019, where it is held that in view of the express provision of Section 80A(5) of the Act, a claim for deduction under Section 80P of the Act can be made by an assessee only in a return filed within the time prescribed for filing such returns under Sections 139(1), 139(4), 142(1) or Section 186 of the Act. In as much as in the instant case, the assessee had not filed any valid return, as per the statutory provisions aforementioned within the time permitted by the statute, we find that their claim for deduction under Section 80P of the Act, should not have been allowed as was done by the Appellate Tribunal in
ITA Nos.11 and 15 of 2019 4 the orders impugned in these appeals. Accordingly, following our own earlier judgment in I.T.Appeal No.120 of 2019, we allow the I.T. Appeals by setting aside the impugned order of the Tribunal and answering the questions of law raised therein in favour of the revenue and against the assessee.
Sd/- DR. A.K.JAYASANKARAN NAMBIAR
JUDGE
Sd/- SYAM KUMAR V.M. JUDGE smm
ITA Nos.11 and 15 of 2019 5 APPENDIX OF ITA 11/2019 PETITIONER ANNEXURES ANNEXURE A ASSESSMENT ORDER U/S 143(3)DTD.27-12- 2016. ANNEXURE B CIT
(A)'S
ORDER
NO.ITA T.38/CIT(A)/KTM/2016-17 DATED 26-02- 2018. ANNEXURE C ITAT'S ORDER IN ITA.NO.200/C0CH/2018 DATED 09/07/2018.
ITA Nos.11 and 15 of 2019 6 APPENDIX OF ITA 15/2019 PETITIONER ANNEXURES ANNEXURE A ASSESSMENT
ORDER
U/S 143(3)DTD.29/03/2016 DATED 30.01.2014. ANNEXURE B CIT
(A)'S
ORDER
NO.ITA T.13/CIT(A)/KTM/2016-17
DATED 26.02.2018. ANNEXURE C ITAT'S ORDER IN ITA.NO.201/COCH/2018 DATED 09/07/2018.