GC 2351 MANAMPATHY PACCS,KANCHIPURAM vs. ITO,WARD-1, KANCHEEPURAM

Year: 2019-20 GC2351 Manampathy Primary Income Tax Officer, Agricultural Coop Credit Society, Vs. Ward-1, Manampathy Village & Post, Kanchipuram Chengalpet Taluk, Chennai Kanchipuram, TN-603105. [PAN: AABAG2597A] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Appellant by : Shri I.Dinesh, Advocate for B.Sakthivel, Advocate. प्रत्यर्थी की ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुिवधई की तधरीख/Date of Hearing : 29.07.2024 घोर्णध की तधरीख /Date of Pronouncement : 23.10.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1053587740(1) dated 07.06.2023 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2019- 20. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 07.06.2023 passed by NFAC, Delhi.

ITA No. 1462 /Chny/2024 :- 2 -:

2.0 The Ld. Counsel for the assesse informed that the only issue in the present appeal, raised by the assesse being a primary agricultural cooperative credit society is regarding the action of CPC in making an adjustment u/s 143(1)(a) which has had the effect of denying the assesse the benefit of deduction u/s 80P. It was submitted that the assesse had filed belated return and the CPC had taken the same as ground to deny the assesse benefit of deduction u/s 80P. The Ld. CIT(A) concurred with the action of the CPC and sustained its adjustment. The Ld. Counsel for the assesse argued that CPC has acquired powers to make adjustment u/s 143(1)(a) only upon amendment to the finance act effective from 01.04.2021. The Ld. Counsel also informed that in the light of CBDT circular No.13 of 2023 empowering CC’sIT to condone delay, in filing of return by cooperative societies qua their claim of deduction u/s. 80P, it has also made a petition dated 18.04.2024 to the jurisdictional CCIT and that the same is pending conclusion. It was submitted that the assesse has fair chances of succeeding before the said authority qua condonation of delay in its filing of return. The Ld. DR relied upon the order of Ld. CIT(A) but acknowledged the CB DT circular supra.

ITA No. 1462 /Chny/2024 :- 3 -:

3.0 We have heard rival submissions in the light of material available on records. The only controversy is regarding denial of deduction u/s 80P to the assesse on the premise of having filed a belated return. The CBDT has already acknowledged through its circular No.13 supra that there is a case of grievance from cooperative societies pertaining to assessment years 2018-19 to AY 2022-23 wherein deduction u/s 80P has been denied on account of belated returns. Accordingly, as per para-4 of the impugned circular in order to mitigate genuine hardships CCsIT / DGsIT have been empowered to condone delay in cases confirming to certain conditions. It is an admitted fact on record that the assesse has filed a petition for condonation of delay before the jurisdictional CCIT and the same was reported to be pending. Accordingly, we are of the view that in the interest of justice, the decision of jurisdictional CCIT should be considered while deciding upon the issue of availability of deduction u/s 80P to the assesse. Accordingly, we set aside the order of lower authorities and direct the assessing officer to await the decision of jurisdictional CCIT qua assesse’s petition for condonation of delay. In the event the assesse succeeds before the jurisdictional CCIT, the deduction u/s 80P would have to be allowed. In the result grounds of appeal raised by the assesse are allowed for statistical purposes.

/Chny/2024 :- 4 -: 4.0 In the result, the appeal raised by the assesse is allowed for statistical purposes. Order pronounced on 23rd, October, 2024.