ANDHRA PRAGATHI FARMERS SERVICE CO-OP SOCIETY,RAMADURGAM V. ITO, WARD-1, ADONI

MA 10/HYD/2024

AI Insights

The case involves the Andhra Pragati Farmers Service Cooperative Society appealing against the Income Tax Officer's decision, which disallowed a deduction under section 80P(2)(a)(i) of the Income Tax Act, 1961, for the Assessment Year 2018-19. The disallowance was initially based on the late filing of the income tax return, which was later condoned by the CIT. The Tribunal had previously disposed of the appeals for both A.Y. 2016-17 and 2018-19 in a composite order, treating the issues as identical. However, the assessee argued that the grounds for A.Y. 2018-19 were different and had not been adjudicated. The Tribunal acknowledged the oversight and the change in circumstances due to the condonation of delay, leading to the recall of the earlier order for A.Y. 2018-19.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 27170 (ITAT-HYDERABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAI PRASAD
• Keywords: Condonation of delay; Rectification of order
• Section: 143(3); 154; 254(2); 139(1); 80P

Judgement Text

" MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 1 of 6 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Madhusudan Sawdia, Accountant Member MA No 10/Hyd/2024 ( आ.अपी.सं /ITA No.661/Hyd/2022 ) (िनधाŊरण वषŊ/Assessment Year: 2018-19) Andhra Pragati Farmers Service Coop. Society, Ramadurgam PAN:AAAAR1876J Vs. Income Tax Officer Ward – 1 ADONI (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: Shri K.A. Sai Prasad, CA राज̾ व Ȫारा/Revenue by:: Shri Srinath Sadanala, DR सुनवाई की तारीख/Date of hearing: 28/02/2025 घोषणा की तारीख/Pronouncement: 04/03/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President By way of this Miscellaneous Application, the assessee is seeking recalling of the order dated 17/10/2023 to the extent of disposing of the appeals of the assessee for the A.Y 2018-19. 2. The learned AR of the assessee has submitted that this Tribunal vide impugned composite order has disposed of two appeals of the assessee for the A.Y 2016-17 and 2018-19. The appeal for the A.Y 2016-17 has been disposed of on merits by this Tribunal but the appeal for the A.Y 2018-19 has been disposed of MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 2 of 6 by treating an identical issue involved whereas the grounds raised by the assessee are entirely different for the A.Y 2018-19 which have not been adjudicated by the Tribunal. Thus, the learned AR has submitted that there is a mistake apparent from record for non-adjudication of the grounds raised by the assessee for the A.Y 2018-19. He has further submitted that for the A.Y 2018-19, the Assessing Officer disallowed the claim of deduction u/s 80P(2) (a)(i) of the Act, while passing the order u/s 154 of the Act on the ground that the assessee filed the return of income belatedly. The said delay in filing the return of income has been now condoned by the CIT vide order dated 13/12/2023, a copy of which is produced before this Tribunal. Thus, the learned AR has submitted that the very ground on which deduction was disallowed by the Assessing Officer is no more exist after the order of the Commissioner dated 13/12/2023. Thus, the learned AR has submitted that the impugned order of the Tribunal relating to A.Y 2018-19 be recalled. 3. On the other hand, the learned DR has submitted that the Tribunal has decided the issue of disallowance of deduction u/s 80P in respect of the interest income received by the assessee from Scheduled Bank for the A.Y 2016-17 and therefore, on the merits of the said disallowance, the Tribunal has taken a view for the ay 2016-17 and the same view was also taken for the A.Y 2018-19. Thus, he learned DR has submitted that there is no mistake apparent from record to be rectified u/s 254(2) of the I.T. Act, 1961. MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 3 of 6 4. We have considered the rival submissions as well as carefully perused the orders of the authorities below as well as the impugned order of this Tribunal. For the A.Y 2018-19, the assessee has raised the following grounds of appeal: 5. Thus, the assessee has challenged the jurisdiction of the Assessing Officer to disallow the deduction u/s 80P(2) while passing the order u/s 154 of the Act. This Tribunal vide composite order dated 17/10/2023 disposed of the appeals of the assessee for the A.Y 2016-17 and 2018-19. The grounds raised for the ay 2016-17 are reproduced by the Tribunal in Para 2.1 as under: “\"1. The order of the learned First Appellate Authority is not correct, either in law or on facts and in both. 2. The learned First Appellate Authority is not justified in confirming the action of the Assessing Officer denying deduction u/s 80P2) in the proceedings u/s 154. The issue MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 4 of 6 involved is debatable and hence cannot be subject matter of adjustments u/s 154. 3 The learned First Appellate Authority is not justified in confirming the action of the Assessing Officer denying deduction u/s 80P(2) in respect of interest received on deposits made in Nationalised Banks amounting to Rs. 6,77,560/-.” 6. Thus, the grounds raised by the assessee for the A.Y 2016-17 are also arising from the order passed by the Assessing Officer u/s 154 of the I.T. Act, 1961 and to that extent the grounds for the A.Ys 2016-17 and 2018-19 are identical except the fact that for the A.Y 2018-19, the Assessing Officer has disallowed the claim of the assessee only on the ground that there was a delay in filing the return of income. Since the Assessing Officer already allowed the claim of the assessee u/s 80P(2) while passing the assessment order u/s 143(3) dated 3/3/2021, therefore, a rectification order dated 8/9/2021 u/s 154 of the Act was passed by the Assessing Officer to disallow the claim of deduction u/s 80P of the I.T. Act, 1961 as under: 7. Thus, the sole reason for disallowing the claim of deduction u/s 80P in the order passed u/s 154 is delay in filing the return of income u/s 139(1) of the Act. Now the assessee has filed the order dated 13/12/2023 of the CIT whereby the delay in filing the return of income for the A.Y 2018-19 has been MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 5 of 6 condoned. The relevant part of this order in para 6 and 7 are reproduced as under: 8. Thus, in view of the subsequent development of condonation of delay in filing the return of income, the matter requires reconsideration. Accordingly, in the facts and circumstances of the case, as discussed above, we recall the impugned order of the Tribunal for the A.Y 2018-19 for fresh adjudication of the appeal of the assessee. The Registry is directed to fix the appeal of the assessee for hearing in ordinary course. 9. In the result, M.A. by the assessee is allowed. Order pronounced in the Open Court on 4th March, 2025. Sd/- Sd/- (MADHUSUDAN SAWDIA) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 4th March, 2025 Vinodan/sps MA No 10 of 2024 Andhra Pragati Farmers Service Coop Society Page 6 of 6 Copy to: S.No Addresses 1 Andhra Pragati Farmers Service Coop. Society c/o Katrapati & Associates, 1-1-298/2/B/3 Sowbhagya Avenue Apts, 1st Floor, Ashoknagar, Street No.1 Secunderabad 500020 2 Income Tax Officer Ward-1 Adoni 3 Pr. CIT - Kurnool 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "