THE COIMBATORE COOPERATIVE HOUSE CONSTRUCTION SOCIETY LIMITED,COIMBATORE vs. ITO, NCW3(1), COIMBATORE

This appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals), Addl/JCIT(A)-1, Pune, for the assessment year 2022-23 dated 28.02.2024.

The only ground raised by the Assessee is the ld.CIT(A) erred in dismissing the appeal by upholding the action of the :-2-: ITA. No: 705/Chny/2024 CPC in rejecting the claim of deduction U/s.80P of the Act due to delay in filing the return of Income.

The brief facts of the case are that, the assessee is a co- operative house construction society and has filed its original return of Income for the A.Y. 2022-23 belatedly on 31/12/2022 (Extended due date for filing return U/s.139(1) was 07/11/2022) declaring total Income at Rs.NIL, after claiming deduction U/s.80P of the Act, of Rs.89,99,250/-. The assessee has also filed petition U/s.119 of the Act, before the ld.PCIT for condonation of delay in filing the return of Income.

The return was processed by the CPC, Bengaluru U/s.143(1) of the Act on 02/03/2023 denying the claim of deduction U/s.80P of the Act of Rs.89,99,250/- for the reason that the assessee has not filed return of income within the due date as per section 139(1) of the Act. Aggrieved by the action of the CPC, the assessee preferred an appeal before the Ld.Addl.CIT(A). The Ld.Addl.CIT(A) considering the grounds of appeal and submissions of the assessee dismissed the appeal by holding as under:

Per contra, the Ld.DR stated that the return was processed by the CPC, Bengaluru U/s.143(1) of the Act on 02/03/2023 denying the claim of exemption U/s.80P of the Act for the reason that the assessee has not filed the return of income within the due date as prescribed U/s.139(1) of the Act. The same has been rightly confirmed by the Ld.Addl. CIT(A), as the assessee has claimed the deduction U/s.80P

We have heard the rival contentions and gone through the intimation U/s.143(1) and order of the Ld. Addl. CIT(A). The Assessee is a co-operative society and filed its return of income for the assessment year 2022-23 belatedly on 31/12/2022 against the extended due date u/s.139(1) was 07/11/2022 and claimed a deduction under Chapter VIA - U/s.80P to tune of Rs.89,99,250/-. It is noted that, the assessee has also filed a petition for condonation of delay before the ld.PCIT U/s.119 of the Act on 31/12/2022, before processing the return of Income by the CPC, Bengaluru.

It is observed that, the assessee had filed a response to proposed adjustment U/s.143(1), stating that The DD of I.T. CPC, Bengaluru has denied deduction claimed u/s. 80P of the Act in respect of return of income was filed by our co-operative society belatedly and passed assessment u/s. 143(1) of the Act without providing any opportunity/ without verifying application for condonation of delay transmitted by :-6-: ITA. No: 705/Chny/2024 electronically. This action of the CPC, Bengaluru is confirmed by the Ld.addl.CIT(A), without waiting for the decision of the ld.PCIT of the condonation petition dated 31/12/2022 filed by the assessee. Considering the facts and circumstances of the case, we are inclined to set aside the impugned order of the Ld.addl. CIT(A) and remit the file back to the JAO to decide the issue in accordance to the decision of the ld.PCIT on condonation petition filed by the assessee.