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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA
आदेश / O R D E R
PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee Co-operative Credit Society against the order of the Learned Commissioner of Income Tax (Appeals), (hereinafter in short "the Ld.CIT(A)”), confirming the action of the CPC denying the claim of deduction, u/s.80P of the Income Tax Act, 1961 (hereinafter in short "the Act”) without waiting for the outcome of the condonation petition filed before the CBDT, which has been allowed.
(AY 2019-20) Nichampalayam Primary Agricultural Co-op. Credit Society Ltd. :: 2 ::
2. At the outset, it is noted that there is a delay of ‘316’ days in filing of this appeal before this Tribunal; and, the assessee has filed condonation application explaining the delay. Having gone through the contents of the condonation application; and taking into consideration the fact that the assessee’s claim u/s.80P of the Act was denied by CPC for belated filing of return of income; and that the Ld Chief Commissioner of Income Tax (hereinafter in short ‘the CCIT’) by order dated 20.12.2023 has condoned the delay in filing return of income; in such circumstances, we are of the view that substantial justice should not be denied and there is a reasonable cause for the delay. Therefore, we condone the delay and proceed to hear the appeal on merits.
The brief facts are that the assessee M/s. Nichampalayam Primary Co-op Credit Society Ltd., is a Co-operative Society and filed its return of income for the relevant year i.e. AY 2019-20 in Form ITR-5 belatedly u/s.139(4) of the Act on 12.06.2020, declaring a total income of Rs.Nil, after claiming deduction under Chapter-VIA of the Act to the extent of Rs.6,27,447/- and the return was processed by the CPC and intimation/order u/s.143(1) of the Act was passed on 16.10.2020, determining the total income of the assessee at Rs.6,27,450/-, by disallowing the assessee's claim of deduction u/s.80P of the Act to the extent of Rs. 6,27,447/- on the ground that the assessee did not file the (AY 2019-20) Nichampalayam Primary Agricultural Co-op. Credit Society Ltd. :: 3 ::
return of income on or before the due date specified u/s.139(1) r.w.s.80AC of the Act.
4. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A), who noted that assessee had filed its return of income for AY 2019-20 only on 12.06.2020 as against the due date on 30.09.2019 as required u/s.139(1) of the Act; and even though, the assessee pleaded before the Ld.CIT(A) that it had filed a condonation application before the CBDT seeking condonation of delay in filing of the return of income beyond the date specified u/s.139(1) of the Act; and pleaded to Ld.CIT(A) to keep the appellate proceedings in abeyance, till disposal of condonation application by the CBDT, but, the Ld.CIT(A) was disinclined to keep the appeal in abeyance till the disposal of condonation application and instead therefore, he dismissed the appeal of the assessee. And meanwhile, the Ld.CCIT, Coimbatore, has been pleased to condone the delay for filing ITR u/s.119(2)(b) of the Act, by order dated 20.12.2023 for the year under consideration AY 2019-20 by holding as under:
The assessee, M/s. A.A 310 Pattalur Primary Agricultural Cooperative Credit Society Ltd, filed its return of income for the A.Y 2019-20 on 12.06.2020, admitting 'Rs.Nil' taxable income after claiming deduction u/s.80P of the Income Tax Act, 1961, (hereinafter, for brevity, referred to as 'the Act'). The Return of Income for the A.Y 2019-20 was due as per the provisions of Section 139(1) of the Act, on or before 31.10.2019.
The assessee is a co-operative society and the books of accounts are required to be audited under the Tamil Nadu Co-operative Societies Act, 1983. In the assessee's case, the statutory audit for the period 01.04.2018 to 31.03.2019 was completed on 11.11.2019 ((e) after the expiry of the due date specified in section 139(1) of the Act.
(AY 2019-20) Nichampalayam Primary Agricultural Co-op. Credit Society Ltd. :: 4 ::
3. The assessee has filed a petition u/s.119(2)(b) of the Act, requesting for condonation of delay in filing the return of income for the A.Y.2019-20, stating that delay was caused due to the delay in completion of the statutory audit.
A report was called for from the Jurisdictional Assessing Officer with respect to the assessee's application. The report furnished by the Income Tax Officer, Ward 2(1), Erode, duly endorsed by the Range Head and the Principal Commissioner of Income Tax -1, Coimbatore, and the assessee's application was examined vis-à- vis Para 6 of CBDT Circular No.13/2023 dated 26.07.2023. In the impugned case, the statutory audit under the State Act was completed only on 11.11.2019 and the assessee-society filed its return of income for the A.Y.2019-20 on 12.06.2020 thereafter.
4.1 Hence, the delay in filing the return of income on or before the due date in this case is attributable to the delay in getting the accounts audited by the statutory auditors appointed under the State Law i.e the delay is due to the circumstances beyond the control of the assessee.
Based on the reasons adduced by the assessee, there appears to be valid reasons to justify consideration of condoning the delay. Hence, a liberal, pragmatic, justice oriented, non-pedantic approach has been taken in the instant case in tandem with the CBDT's Circular in F.No. 173/21/2023-ITA-1 dated 26.07.2023.
6. In view of the above, the assessee's application u/s.119(2)(b) of the Act, seeking condonation of delay in filing the return of income to claim deduction u/s.80P r.w.s 80AC(ii) of the Act, for the Assessment Year 2019-20 is hereby allowed.
It is however, clarified that the condonation of delay in filing Return of Income will not amount to acceptance of deduction claim in the Return of Income concerned per se and the deduction claim shall be dealt with on merits.
5. The disallowance of the claim for deduction was because assessee belatedly filed return of income. And, in the light of the aforesaid order of the Ld.CCIT condoning the delay in filing of return of income, for the interest of justice and fair-play, the claim raised by assessee need to be examined by AO. Therefore, we set aside impugned order of the Ld.CIT(A) and restore the appeal back to the file of the JAO with a direction to process the claim of the assessee u/s.80P of the Act, in the (AY 2019-20) Nichampalayam Primary Agricultural Co-op. Credit Society Ltd. light of the condonation order passed by the Ld CCIT, Coimbatore, in accordance to law. Needless to say, assessee need to be heard before passing the order and assessee is directed to file written submissions and file papers to prove their claim and the JAO to pass speaking order.
In the result, appeal filed by the assessee is allowed for statistical purposes
Order pronounced on the 05th day of July, 2024, in Chennai.