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Facts
The assessee, a credit cooperative society, did not file its income tax return for A.Y. 2015-16. Upon receiving a notice under Section 148, it filed a return claiming deduction under Section 80P. The AO and CIT(A) denied the deduction, citing non-compliance with Section 80AC due to the late filing of the return.
Held
The Tribunal held that Section 80AC was not applicable for A.Y. 2015-16 for claiming deduction under Section 80P, as its provisions were extended to cooperative societies for Section 80P from A.Y. 2018-19 onwards. Therefore, the assessee was entitled to the deduction even if the return was filed late.
Key Issues
The key legal issue was whether the assessee, a cooperative society, was entitled to claim deduction under Section 80P for A.Y. 2015-16 despite filing its return of income late, considering the applicability of Section 80AC.
Sections Cited
Section 80P, Section 80AC, Section 147, Section 148, Section 144, Section 250, Section 139(1), Section 142(1), Section 80A(5)
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Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of theNFAC/CIT(A) passed u/sec147r.w.s144 and u/sec 250 of the Act. The assesse has raised the grounds of appeal
challenging the order of the NFAC/CIT(A) sustaining the denial of claim of deduction under section 80P of the Act applying the provisions of section 80AC of the Act.
2. The brief facts of the case are that, the assessee is a credit cooperative society engaged in providing the credit facilities to member s. The Assessing Officer (AO) based on the information and data analytics/ cash transactions data Shri Dhanalaxmi Urban Cooperative Credit Society Limited, found that the assesse has made cash deposits in the bank accounts in the F.Y 2014-15 and the assesse has not filed the return of income. The Assessing Officer(A.O) has reason to believe that the income has escaped assessment and issued notice u/sec148 of the Act. In compliance, the assessee has filed the return of income for A.Y.2016-17 on 15.07.2023 disclosing a total income of Rs,NIL after claiming deduction u/sec80P of the Act of Rs.7,84,077/- Subsequently the assessee in compliance to the notices has filed details on various dates. Whereas the A.O find that the assesse has made the cash deposits in the F.Y.2014-15 and explanations were called to substantiate the cash deposits and the assesse has furnished the clarifications. Further the A.O found that for the A.Y.2015- 16 the assessee has not filed the return of income u/sec 139(1) of the Act and the conditions stipulated under section 80AC of the Act are not complied by the assessee and the A.O has denied the claim of deduction u/sec80P of the Act and assessed the total income of Rs.7,84,077/- and passed the order u/sec147 r.w.s144B of the Act dated 18.03.2024.
3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and the assessee has filed the details and submissions. But the CIT(A) has confirmed the action of the A.O and dismissed the appeal.
Shri Dhanalaxmi Urban Cooperative Credit Society Limited, Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal.
At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. Further the provisions of section 80AC of the Act are applicable to the cooperative societies from A.Y.2018-19 to claim deduction u/sec80P of the Act provided the return of income is filed within the due date u/sec139(1) of the Act and whereas the impugned assessment year is A.Y.2015-16. The Ld.AR supported the submissions with the facts and judicial decisions. Per Contra, the Ld.DR supported the order of the CIT(A).
Heard the rival submissions and perused the material on record. The sole crux of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the denial of claim of deduction u/sec80P of the Act. The assesse has filed the details before the lower authorities and the CIT(A) has not considered the documents and information supporting the claim of the assesse. The Ld.AR highlighted that the provisions of section 80A(5) of the Act are not applicable as the deduction under section 80P of the Act was not included in the proviso till A.Y.2017-18 and therefore deduction u/sec80P of the Act can be claimed even after the due date u/sec139(1) of the Act. The Ld.AR relied on the decision of the Honble Tribunal Bangalore Bench –Prathamika krishi patina sahakara Shri Dhanalaxmi Urban Cooperative Credit Society Limited, sangha ltd(2022)142 taxmann.com405. Similarly Honble Tribunal Panaji bench- ITA..No.84/PAN/2022 -The Omkar urban cooperative credit society Ltd Vs ITO Belagavi.A.Y.2017-18 were the Honble Tribunal in Para 5.4 of the order had dealt on the similar issue were the assessee has filed the return of income disclosing total income Rs.Nil after claiming the deduction u/sec80P of the Act in pursuance to notice issued u/sec142(1) of the Act in the assessment proceedings and the Honble Tribunal concluded that the provisions of section 80AC of the Act shall not be applicable and the assessee is entitled deduction u/sec80P of the Act. Hence considering, the facts, circumstances and follow the judicial precedence and set aside the order of the CIT (A) on this disputed issue and direct the Assessing officer to allow the claim of deduction u/sec80P of the Act. And the grounds of appeal
of the assesse are allowed in favour of the assesse.
6. In the result, the appeal filed by the assesse is allowed. Order pronounced on 16/03/2026 as per rule 34(5) of the ITAT Rules 1963. Sd/- (PAVAN KUMAR GADALE) JUDICIAL MEMBER Panaji Dated: 16/03/2026 Copy of the Order forwarded to: 1. The Appellant, Shri Dhanalaxmi Urban Cooperative Credit Society Limited, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji Initial Date 1. Draft dictated on PS 2. Draft placed before author PS
Draft proposed & placed before PS the second member 4. Draft discussed/approved by PS Second Member. 5. Approved Draft comes to the PS Sr.PS/PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed