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Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN
Before: SHRI CHANDRA POOJARI & SHRI SOUNDARARAJAN K.
PER CHANDRA POOJARI, ACCOUNTANT MEMBER:
This appeal by assessee is directed against the order of NFAC passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2018-19 dated 12.1.2023. The assessee has raised following grounds of appeal: 1. “The order of the learned Commissioner of Income Tax (Appeals) National Faceless Appeal center dated 12-01-2023 for the assessment year 2018-19 dismissing the appeal is against the order u/s. 154 is against law and contrary to the facts and circumstances of the case.
2. The learned Commissioner of Income Tax (Appeals) NFAC went wrong in affirming the order of the Deputy Commissioner of Income Tax u/s. 154 dated 26-11-2019.
Your appellant is entitled for deduction u/s. 80P considering the CBDT Circular F No. 225/15/2019/1TA.11, dated 27-02-2019.
Chemanchery Rural Co-operative Housing Society Ltd., Koyilandy Page 2 of 4 4. Your appellant accounts are to be audited under the Cooperative Societies Act the extension is applicable to your appellant
5. Deduction under section 80P should be allowed to your appellant.
6. For the above and other grounds that may be submitted at the time of hearing it is prayed to the Honorable Tribunal to allow the appeal.” Total tax effect Rs.10,68,230/-
Facts of the issue are that the assessee, a C0-operative Society filed its return of income for assessment year 2018-19 on 11.10.2018 making deduction claim of Rs.10,68,230/- u/s 80P of the Act. The return was processed u/s 143(1) of the Act, rejecting the claim of deduction u/s 80P of the Act for the reason that return of income for the year under consideration was not filed in time. The assessee filed rectification request u/s 154 of the Act on 2.10.2019 which was not accepted vide 154 orders dated 26.11.2019. Against the order u/s 154, the assessee went in appeal before NFAC. The NFAC denied the deduction claimed by assessee u/s 80P of the Act on the reason that the return filed by the assessee was belated as the assessee was required to file the return on or before 15.9.2018 as per CBDT Guidelines, but the assessee has filed the return on 11.10.2018, which is belated return. Against this assessee is in appeal before us. 4. None appeared on behalf of the assessee at the time of hearing before us. Hence, we heard the departmental representative. It is brought to our notice by the ld. D.R. that originally due date of filing return of income was 30.9.2018. Later, it was extended by CBDT up to 15.10.2018. Once again it was extended up to 31.10.2018 and she drew our attention to the CBDT Circular No.358/2018 dated 8.10.2018, which reads as follows:
Chemanchery Rural Co-operative Housing Society Ltd., Koyilandy Page 3 of 4
We have carefully gone through the above circular. Admittedly, this circular is binding on the department as the assessee has filed the return of income on 11.10.2018. The return filed by the assessee is a valid return and it is not a belated return as there was extension of time up to 15.10.2018, and thereafter up to 31.10.2018. According to the claim of assessee u/s 80P of the Act cannot be denied on this reason. Accordingly, the issue is remitted to the file of ld. AO to consider the same afresh in accordance with law.
Chemanchery Rural Co-operative Housing Society Ltd., Koyilandy Page 4 of 4
In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 14th May, 2024