BANNARI AMMAN SUGARS EMPLOYEES COOPERATIVE THRIFT&CREDIT SOCIETY LIMITED,ERODE vs. ITO, WARD 1(1), ERODE

Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 11-11-2022 confirming denial of deduction u/s. 80P by Centralized Processing Center (CPC) u/s. 143(1) on 31-05-2019. The deduction was denied by invoking the provisions of Section 80AC since assessee filed return of income belatedly beyond due date as specified u/s 139(1).

The Registry has noted delay of 184 days in the appeal, the condonation of which has been sought by the assessee on the strength of affidavit of the President of the assessee society. The Ld. AR has also placed on record the order passed by appropriate authority condoning the delay. The Ld. Sr. DR opposed the condonation of delay. However, keeping in mind cause of substantial justice, we condone the delay and admit the appeal for adjudication on merits.

In the impugned order, Ld.CIT(A) has held that provisions of Sec.139(1) r.w.s.80AC was mandatory for assessee co-operative society for claiming deduction u/s.80P. Since the assessee did not file return of income within the time prescribed u/s.139(1), it would not be entitled for impugned deduction u/s.80P. 4. As rightly submitted by Ld. AR, the delay has been condoned by appropriate authority i.e., Ld. CCIT, Coimbatore vide ITBA/COM/F/17/2023-24/1059670711(1) dated 12-01-2024 allowing assessee’s application u/s.119(2)(b) seeking condonation of delay in filing return of income to claim deduction u/s. 80P r.w.s. 80AC(ii) of the Act. The Ld. Sr. DR could not controvert the said position. This being the case, there is no reason to deny the impugned deduction to the assessee. We direct Ld. AO to allow the impugned addition as claimed by the assessee. 5. The appeal stands allowed. Order pronounced on 29th January, 2024