ALIGARH BANK EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LIMITED,ALIGARH V. J.A.O,W-4(1)(4), ALIGARH

ITA 1/AGR/2022

AI Insights

The case involves the Aligarh Bank Employees Co-operative Credit Society Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi. The appeal was concerning the denial of a deduction claimed under section 80P of the Income Tax Act for the Assessment Year 2019-20. The deduction was initially denied by the CPC on the grounds that the return was not filed within the due date, which the assessee contested. The CIT(A) agreed that the return was filed within the extended due date but still disallowed the deduction on the grounds that the interest income was not eligible under section 80P(2)(d). The Tribunal found that the CIT(A) had exceeded the scope of the return processing under section 143(1) by going into the merits of the deduction and reversed the decision, allowing the deduction claimed by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126476 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SHRIVASTAVA LD.
• Assessee Lawyers: DEEPAK; LD
• Keywords: Dismissed; Commissioner; Commissioner of Income Tax
• Section: 154; 80P

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.01/Agr/2022 (िनधा \u0010रणवष\u0010 / Assessment Year: 2019-20) Aligarh Bank employees Co- operative Credit Society Ltd. C/o Deepak Singh, Adv., 2, Court of Wards Compound, Aligarh. बनाम/ Vs. Income-tax Officer, CPC, Bengaluru. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AAEAA-7329-M (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Sh. Deepak, Adv. – Ld. AR थ कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 18-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of an order passed by of learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 25-11-2021 in the matter of an rectification intimation issued by CPC u/s 154 on 11-07-2020 denying deduction as claimed by the assessee u/s 80P. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The assessee is a registered co-operative society providing credit facility to its members against interest. The assessee claimed deduction u/s 80P for Rs.41.90 Lacs which was denied by CPC solely on the ground that the return was not filed within due date. The assessee stated that the 2 return was filed on 28-09-2019 which was well within extended due date. The Ld. CIT(A) concurred with the same. However, Ld. CIT(A) went ahead to disallow the deduction claimed on interest income u/s 80P(2)(d) on the ground that interest income other than from co-operative society and co-operative bank is not eligible for deduction u/s 80P and accordingly, dismissed the appeal of the assessee. Aggrieved, the assessee is in further appeal before us. 3. From the facts, it is quite clear that CPC denied the impugned deduction solely on the ground that the return was not filed within due date. The assessee established that the return was filed on 28-09-2019 which was well within extended due date. The Ld. CIT(A) concurred with the same. This being admitted fact, the denial of impugned deduction by CPC would have no legs to stand since while processing the return of income u/s 143(1), only prima-facie adjustment could be done by CPC. Once the reason to disallow the impugned deduction was well addressed by the assessee, Ld. CIT(A) could not traverse beyond the scope of processing of return of income u/s 143(1). The Ld. CIT(A), in our opinion, has enhanced the scope of processing of return of income by going into the merits of the deduction. It is another fact that the assessee derives interest income from its members and it is otherwise eligible to claim the said deduction u/s 80P(2)(a)(i) itself. On both these counts, the impugned denial of deduction stand reversed. The Ld. AO is directed to re-compute the income of the assessee. 3 4. The appeal stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 4ा ियक सद5 /JUDICIAL MEMBER लेखा सद5 /ACCOUNTANT MEMBER Dated: 22.04.2025 आदेश की 7ितिलिप अ9ेिषत / Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "