PERINGOTTUKURUSSI SERVICE CO-OPERATIVE BANK LTD,PALAKKAD vs. THE ITO WARD-5, PALAKKAD

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ITA 30/COCH/2022Status: DisposedITAT Cochin30 November 2022AY 2017-183 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to comply with the mandatory requirement of Section 80A(5) of the Income Tax Act by not filing a return of income. Consequently, the denial of deduction under Section 80P(2)(a)(i) was upheld.

What were the facts?

The assessee, a primary agricultural credit cooperative society, failed to file its return of income for AY 2017-18. Despite having taxable income, it did not comply with notices issued by the Assessing Officer. The assessment was completed on a best judgment basis.

What were the issues?

Whether a cooperative society is eligible for deduction under Section 80P(2)(a)(i) without filing a return of income as required by Section 80A(5).

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(i),Section 80A(5),Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: HON’BLE SHRI SATBEER SINGH GODARA, J.M & HON’BLE SHRI MANOJ KUMAR AGGARWAL, A.M

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 17-12-2021 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.144 of the Act on 17-12-2019. At the time of hearing, none appeared for assessee and accordingly, the hearing was 2 - proceeded with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeal. The sole grievance of the assessee is denial of deduction u/s 80P(2)(a)(i). The assessee is a primary agricultural credit cooperative society registered under the Kerala Cooperative Societies Act.

2.

The assessee did not file return of income for this year despite having taxable income. The notices issued by Ld. AO during assessment proceedings were not complied with. Consequently, the assessment was framed on best judgment basis and income was computed at Rs.109.72 Lacs. The Ld. CIT(A) confirmed the assessment on the ground that as required by Sec.80A(5), the assessee has to file return of income to claim deduction u/s 80P(2)(a)(i). Since the assessee failed to do so, the deduction has rightly been denied. Aggrieved, the assessee is in further appeal before us.

3.

Upon due consideration of material facts, it could be gathered that the assessee has not filed return of income and on self- assumption maintained a position that its income would not exceed taxable income considering the provisions of Sec. 80P overlooking the fact that it has to follow the requirement of Sec.80A(5) to claim this deduction. Therefore, impugned order could not be faulted with.

4.

The appeal stands dismissed. Order pronounced on 30th November, 2022.

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