KAI SAU ALKATAI PALODKAR KHAJAGI SHIKSHAK SEVAKANCHI SAHAKARI PATSANSTHA M,SILLOD vs. INCOME TAX OFFICER WARD 1(1) , AURANGABAD

This bunch of three appeals filed by the assessee pertaining to the captioned assessment years are directed against the separate orders passed u/s.250 of the Income Tax Act, 1961 [in short “the Act"] by the National Faceless Appeal Centre, Delhi [in short “NFAC”] dated 05.09.2024 to 2372/PUN/2024 Kai Sau Alkatai Palodkar Khajagi Shikshak Sevakanchi Sahakari Patsanstha M. which in turn are arising out of respective rectification orders passed u/s.154 of the Act.

Since identical grounds have been taken by the assessee in these appeals I proceed to dispose of the appeals by this consolidated order for the sake of convenience.

Facts in brief commonly for all the years under appeal are that the appellant is an Association of persons and filed the returns for the A.Y. 2019-20, A.Y. 2021-22 & A.Y. 2022- 23 u/s.139(4) of the Act claiming deduction u/s.80P of the Act. The same were processed by CPC disallowing deduction claimed by the assessee u/s.80P of the Act in light of the provisions of section 80AC of the Act as the returns of income were filed belatedly.

Aggrieved assessee filed rectification applications and the same were rejected by the AO. Further aggrieved, the assessee filed appeal before the ld.CIT(A)/NFAC. The ld.CIT(A)/NFAC relying on various decisions and applicability of the provisions of section 80AC of the Act affirmed the action of the CPC. to 2372/PUN/2024 Kai Sau Alkatai Palodkar Khajagi Shikshak Sevakanchi Sahakari Patsanstha M.

Now the assessee is in appeal before this Tribunal challenging the rectification order passed u/s.154 of the Act.

At the outset, ld. Counsel for the assessee referring to CBDT Circular No.13/2023, dated 26.07.2023 and the Letter No. R 11015/01/2023-CD-I dated 03.08.2023 issued by Ministry of Cooperation submitted that the societies would be at liberty to file condonation applications for delay in furnishing the return of income for the A.Yrs. 2018-19 to 2022-23 and directed the CCIT/DGIT to deal with such application of condonation of delay considering the genuine hardship faced by Cooperative Societies in the form of delay in getting the accounts audited under the respective state laws resulting in delay in filing of the income-tax returns. He further submitted that the assessee had filed the application for condonation of delay before the competent authority on 19.11.2024 and is very hopeful to succeed and therefore prayed that the matter may be restored to the file of Jurisdictional Assessing Officer for denovo adjudication of the issue to be carried out after the outcome of the to 2372/PUN/2024 Kai Sau Alkatai Palodkar Khajagi Shikshak Sevakanchi Sahakari Patsanstha M. condonation application filed on 19.11.2024 for all the assessment years under consideration.

On the other hand, the ld. DR vehemently argued supporting the order of ld.CIT(A)/NFAC.

I have heard the rival contentions and perused the record placed before me. The issue raised involved in the instant appeals is denial of deduction u/s.80P of the Act for delay in filing of the income-tax return and the provisions of section 80AC of the Act invoked by the ld.CIT(A)/NFAC affirming the action of the CPC. Ld. Counsel for the assessee has not disputed the fact that return of income for the years under appeal has been filed belatedly and the provisions of section 80AC of the Act stands attracted and the ld.CIT(A)/NFAC having affirmed the claims in the light of the provisions of section 80AC of the Act.

I further notice that the assessee being a Cooperative Society are required to get their accounts audited under the respective state laws and once accounts are audited then only the Societies can furnish return of income. The CBDT to 2372/PUN/2024 Kai Sau Alkatai Palodkar Khajagi Shikshak Sevakanchi Sahakari Patsanstha M. in Circular No.13/2023, dated 26.07.2023 have dealt with this issue for A.Yrs. 2018-19 to 2022-23 and have observed that many Societies have been denied the benefit of deduction u/s.80P of the Act for delay in filing of the income-tax returns and the main reason for such delay was delay in getting the accounts audited under the respective state laws. CBDT vide its circular dated have authorised the CCsIT/DGsIT to deal with application for condonation of delay in furnishing of return of income on account of delay in getting the accounts audited under the respective state laws. The assessee has placed copies of the application for condonation of delay filed with the PCCIT, Pune on 19.11.2024 for the years under appeal. These applications are still pending for disposal and the outcome of these applications shall decide the fate of claim of deduction u/s.80P of the Act. In view thereof, in case, the delay is condoned, then the assessee would be eligible for deduction u/s.80P of the Act as the provisions of section 80AC of the Act will not apply. I therefore in the interest of justice deem it proper to remit the issue to the file of Jurisdictional Assessing Officer for denovo adjudication to be carried out to 2372/PUN/2024 Kai Sau Alkatai Palodkar Khajagi Shikshak Sevakanchi Sahakari Patsanstha M. after the outcome of the applications filed by the assessee for condonation of delay on 19.11.2024 to ld. PCCIT, after providing the assessee with necessary opportunity of being heard.

In the result, all the appeals of the assessee are allowed for statistical purposes.