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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE & SHRI NARENDRA PRASAD SINHA
PER SUCHITRA KAMBLE, JUDICIAL MEMBER:
This appeal is filed by the assessee against order dated 22.01.2024 passed by the Addl/JCIT(A)-4, Bengaluru for the Assessment Year 2020-21.
The assessee has raised the following grounds of appeal :-
“1. The Id. Addl/JCIT(A) has grievously erred in law and on facts in confirming disallowance of interest received on FDRs with The Ahmedabad District Co-operative Bank of Rs.2,76,235/- and share dividend of Rs.1,82,190/- claimed as 'Exempt' u/s. 80P(2)(d) of the Act without appreciating the facts and submission in its proper perspective.
2. He has erred in law and on facts in upholding non allowance of deduction of Interest of Rs.4,58,425/- u/s.80P(2)(d) of the Act.
3. He has erred in law and facts in upholding dis-allowance u/s.80P(2)(d) without appreciating the fact that the Ahmedabad District Co-Operative Bank is a Co-operative Society and also the federation giving dividend is also a co-operative society and not co-operative bank.
He has erred in law and facts in not appreciating facts that for A.Y. 2020- 21, no adjustment can be made in the intimation being no provision thereof, Section 143(1) of the Act.
On the facts of the assessee society, the NIL return of income ought to have been accepted without any addition.
6. On the facts of the assessee, no interest u/s.234A, 234B, 234C ought to have been levied.”
The assessee filed return of income for the Assessment Year 2020-21 on 28.03.2021 in ITR-5 in the status as AOP/BOI admitting an income of Rs. Nil. The extended due date for filing the ITR was 15.02.2021. The assessee filed the return on 28.03.2021 which was belated. In the income tax return, the assessee admitted a gross total income of Rs.7,23,590/- and after a claim of deduction under Chapter VIA, under Section 80P of the Act of Rs.7,23,590/- the total income returned was filed as Rs. Nil. The gross total income included income from business or profession of Rs.2,65,168/- and income from other sources of Rs.4,54,425/-. The assessee claimed deduction under Section 80P(2)(b) at Rs.2,52,571/-, 80P(2)(c)(ii) at Rs.12.597/- and 80P(2)(d) at Rs.4,58,425/- and aggregating to Rs.7,23,593/-. The income tax return was processed under Section 143(1) of the Act on 25.11.2021 thereby disallowing the entire claim of deduction under Chapter VIA. The income computed under Section 143(1) of the Act was Rs.7,23,590/-.
4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee.
5. The Ld. AR submitted that as per Intimation under Section 143(1) of the Act dated 15.12.2021 as against Nil income it has been computed at Rs.7,23,593/- without granting deductions relating to supply to union, dividend, interest income and claim under Section 80P(2) and thereby treated as taxable income as the return was filed on 28.03.2021 instead of extended due date of 15.12.2021. The return was delayed on account of the reason beyond the control of the assessee society i.e. the assessee as Audit by the Government Auditor was completed on 18.08.2021 for the period 01.04.2019 to 31.03.2021. To furnish return before limitation audit was got done by the Chartered Accountant on 18.03.2021 and return of income was filed. The assessee made grievance to CPC for non-grant of exemption and in the resolution, it was informed that deduction under Section 80P of the Act has been disallowed as the original return has been filed after due date. The CIT(A) also disallowed the exemption under Section 80P(d) for dividend and interest from Ahmedabad District Co-operative bank Limited but the said issue is covered in favour of the assessee by the following decisions of the Tribunal:-
1) Rethal Dudh Utpadak Sahkari Mandali Limited (ITA No.130/Ahd/2023 order dated 10.05.2023)
2) Uttam Dairy Staff Co Op. Credit & Supply Society (ITA No.454/Ahd/2023 order dated 09.08.2023)
3) Batava Devli Seva Sahkari Mandali (ITA No.314/RJT/2022, order dated 25.04.2023)
4) Ghodavader Seva Sahkari Mandali (ITA No.315./RJT/2022 order dated 25.04.2023)
5.1 The Ld. AR submitted that since the issue is covered and delay was not on the part of the assessee, the return should have been taken into account and the exemption/deduction should have been granted by the Assessing Officer for which the assesses is entitled.
The Ld. DR relied upon the Intimation and the Order of the CIT(A).
We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that there is no dispute to the issue that the assessee is entitled for deduction under Section 80P of the Act in respect of the dividend received from Ahmedabad District Co-operative Bank Limited alongwith interest. In fact, in assessee’s own case for A.Y. 2017-18, the assessee has been granted the said claim with the same Ahmedabad District Co-operative Bank and the interest derived from it. Thus, the delay on the part of Government Auditor to give its report belatedly was beyond the control of the assessee and, therefore, there was genuine reason for filing the return of income belatedly and this fact cannot be ignored by the Revenue. Besides this, the mandate to file the return of income is applicable from 2021-22 and, therefore, the Assessing Officer as well as the CIT(A) was not correct in disallowing the claim of deduction under Section 80P of the Act to the assessee on the ground of delay in filing the return as well as on new merit.
In the result appal of the assessee is allowed.
Order pronounced in the open Court on this 30th September, 2024.