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Facts
The assessee, a co-operative society, filed its return for AY 2018-19 belatedly on 31.03.2019, claiming a deduction under Section 80P. The delay was due to the late completion of statutory audit. The Ld.CCIT condoned this delay. However, the CPC denied the deduction, and the Ld.CIT(A) sustained this denial, overlooking the Ld.CCIT's order.
Held
The Tribunal found that the Ld.CIT(A) passed the order without application of mind by overlooking the condonation order of the Ld.CCIT. Therefore, the impugned order was set aside.
Key Issues
Whether the Ld.CIT(A) was justified in disallowing the deduction u/s 80P when the delay in filing the return was already condoned by the Ld.CCIT.
Sections Cited
80P, 139(1), 119(2)(b), 143(1)
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Income Tax Appellate Tribunal, ‘A’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI S.R.RAGHUNATHA
आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) / Addl/JCIT(A)-1 (hereinafter in short "the Ld.CIT(A)”), Pune, dated 28.02.2024 for the Assessment Year (hereinafter in short "AY”) 2018-19.
The Ld. Counsel for the assessee submitted that there is a delay of ‘11’ days in filing of this appeal and the assessee has filed an application for condonation of delay; and after going through the contents of the application for condonation of delay, we find reasonable cause for the delay in filing of appeal and hence, we condone the delay of ‘11’ days and proceed to adjudicate the appeal on merits.
The grounds raised by the assessee are as under:
The order by the learned First Appellate Authority is bad and erroneous in law.
The learned First Appellate Authority, though the CCIT, Cbe by order dt.21.12.2023 condoned the delay in filing the return of income, erred in not considering the same in the order dt.28.02.2024, despite filing of the copy of order of the CCIT on 24.02.2024- vide Ack. No. 123546391240224, (Copy of the order of the CCIT is enclosed herewith) And for other reasons that may be adduced at the time of hearing, the appellant prays that this appeal be admitted and considered in the interest of justice.
The brief facts are that the assessee society filed its return of income (RoI) for AY 2018-19 on 31.03.2019 admitting taxable income ‘NIL’ after claiming deduction u/s.80P of the Income Tax Act, 1961 (hereinafter in short ‘the Act’) to the tune of Rs.19,71,376/-. The due- date as per provisions of Sec.139(1) of the Act was 31.10.2018, so returned income was filed belatedly by the assessee on 31.03.2019. In this regard it is noted that the assessee being a Co-operative Society, its books of accounts had to be statutorily audited in terms of the Tamil Nadu Cooperative Societies Act, 1983; and even though, the assessee submitted all relevant records for audit, but the statutory audit for the period from 01.04.2017 to 31.03.2018 was completed only on 24.06.2019 (which was after the expiry of due date specified u/s.139(1) of the Act).
And the assessee filed the condonation of delay u/s.119(2)(b) of the Act before the Ld. Chief Commissioner of Income Tax (hereinafter in short ‘Ld.CCIT’) in belatedly filing the return of income for claiming the deduction u/s.80P of the Act by pointing out that delay caused was due to late-completion of statutory audit. The Ld.CCIT, Coimbatore, being satisfied with the reasons adduced by the assessee, was pleased to condone the delay in filing of the return to claim deduction u/s.80P of the Act by order dated 21.12.2023. Meanwhile the return of income filed by the assessee on 31.03.2019 (belatedly) was processed by the CPC and intimation u/s.143(1) of the Act was passed on 09.11.2019 whereby, the CPC denied the claim of deduction u/s.80P of the Act for belated filing of return of income [obviously without noticing the order of the Ld.CCIT condoning the delay which was an event, which happened only on 21.12.2023].
Aggrieved, by the CPC (intimation dated 09.11.2019) the assessee preferred an appeal before the Ld.CIT(A) and even though, the order condoning the delay in filing of the ITR passed by the Ld.CCIT dated 21.12.2023 was brought to the notice of the Ld.CIT(A), the Ld.CIT(A)
overlooked the same and sustained the action of the CPC disallowing deduction u/s.80P of the Act on the ground that the assessee has filed the ITR belatedly. We don’t countenance this action of the Ld.CIT(A) in light of the condonation order passed by the Ld.CCIT dated 21.12.2023, wherein, the Ld.CCIT has condoned the delay in filing of the ITR for AY 2018-19 on 31.03.2019.
In the light of the aforesaid facts, we set aside the impugned order of the Ld.CIT(A) which has been passed without application of mind and restore the appeal back to his file with a direction to process the claim of the assessee u/s.80P of the Act on merits in view of the condonation order passed by the Ld.CCIT, Coimbatore, condoning the delay in filing of the return of income, and needless to say that assessee be heard before passing the order and the assessee is directed to file all relevant documents/written submissions to prove the claim and the Ld.CIT(A) to pass speaking order.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 18th day of September, 2024, in Chennai.
Sd/- Sd/- (एबी टी. वक�) (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) (ABY T. VARKEY) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER चे�ई/Chennai, �दनांक/Dated: 18th September, 2024. TLN, Sr.PS