DAGADUDHONDU YEOLA NAGARI SAHAKARI PATSANSTHA MARYADIT,SATANA V. THE INCOME TAX OFFICER, WARD 1(1), NASHIK, NASHIK

ITA 2326/PUN/2025

AI Insights

The case involves Dagadudhondu Yeola Nagari Sahakari Patsanstha Maryadit, a cooperative society, which appealed against the order of the National Faceless Appeal Centre, Delhi. The appeal was directed against a rectification order that denied a deduction under Chapter VIA of the Income Tax Act, 1961, due to a delay in filing the income tax return for the assessment year 2018-19. The CPC had initially disallowed the deduction claimed under section 80P due to the return being filed after the due date. The Tribunal, referencing a series of precedents, concluded that the CPC did not have the authority to make such a disallowance for the period before the specified date in 2021.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 835600 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 08-10-2025
• Other Referred Cases: Narhari Maharaj Majoor Sahakari Sanstha Ltd. Vs. ITO, Shiv Sahyadri Nagari Sahakari Patsanstha Maryadit vs. ITO, Lanjani Cooperative Agri Service Society Ltd. vs. DCIT, Sahakari Ganna Vikas Samiti Ltd. V. ACIT, Chakargadh Seva Sahakari Mandali Ltd.V. DCIT (CPC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: EKNATH ABHANG
• Assessee Lawyers: SANJEEV MUTHA
• Keywords: Set aside; Rectification of order
• Section: 139

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.2326/PUN/2025 Assessment Year : 2018-19 Dagadudhondu Yeola Nagari Sahakari Patsanstha Maryadit, At Post Satana, Nashik 423 301 Maharashtra PAN : AABAD2549P Vs. Income Tax Officer, Ward-1(1), Nashik Appellant Respondent आदेश / ORDER The captioned appeal at the instance of assessee pertaining to the Assessment Year 2018-19 is directed against the order dated 11.08.2025 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Rectification Order dated 03.08.2023 passed u/s.154 of the Act. 2. The sole grievance of the assessee is against the prima-facie adjustment made by the CPC denying deduction under Chapter VIA of the Act in the Intimation passed u/s.143(1)(a) dated 31.05.2019. 3. At the outset, ld. Counsel for the assessee submitted that case of the assessee is squarely covered by plethora of decisions where it has been consistently holding that the powers for making such prima-facie adjustment denying deduction under Chapter Assessee by : Shri Sanjeev Mutha (Through virtual) Revenue by : Shri Eknath Abhang (Through virtual) Date of hearing : 03.02.2026 Date of pronouncement : 12.02.2026 Printed from counselvise.com ITA No.2326/PUN/2025 Dagadudhondu Yeola Nagari Sahakari Patsanstha Maryadit 2 VIA of the Act for delay in filing the appeal have been conferred to the CPC from 01.04.2021 onwards and he therefore stated that the impugned disallowance deserves to be deleted. 4. On the other hand, ld. Departmental Representative supported the order of ld.CIT(A). 5. I have heard the rival contentions and perused the record placed before me. I observe that the assessee is a Cooperative Society and return of income for A.Y. 2018-19 has been furnished on 18.12.2018 which is beyond the prescribed due date of 31.10.2018. Assessee has claimed deduction u/s.80P of the Act at Rs.5,29,124/- but CPC vide Intimation dated 31.05.2019 has denied the said claim on account of delay in filing the return of income. I observe that the issue is no longer res integra by virtue of catena of decisions passed by this Tribunal. 6. So far as the issue raised by the assessee for the year under consideration that CPC was not having the powers to disallow the deduction claimed under Chapter VI if the return is furnished beyond the due date specified u/s.139(1) of the Act, I find that the said powers have been conferred to the CPC by the Finance Act, 2021 w.e.f. 01.04.2021 in section 143(1)(a)(v) of the Act subsequent to which the CPC is empowered to make prima-facie adjustment to disallow the claim of deduction u/s.10AA or deduction claimed under Chapter VIA if the return is furnished beyond the due date specified in sub-section (1) of section 139 of the Act under the provisions provided u/s.143(1)(a)(v) of the Act. This view has been consistently followed by this Tribunal and Coordinate Benches in plethora of decisions. Some of the decisions on this very issue are quoted below : Printed from counselvise.com ITA No.2326/PUN/2025 Dagadudhondu Yeola Nagari Sahakari Patsanstha Maryadit 3 i. Pune Bench in the case of Narhari Maharaj Majoor Sahakari Sanstha Ltd. Vs. ITO – ITA No.1458/PUN/2025 order dated 16.07.2025 ii. Shiv Sahyadri Nagari Sahakari Patsanstha Maryadit in ITA No.1788/PUN/2024 order dated 07.11.2024. iii. Coordinate Bench, Chandigarh in the case of Lanjani Cooperative Agri Service Society Ltd. vs. DCIT (2023) 146 taxmann.com 468 (Chandigarh- Trib.). iv. Coordinate Bench, Lucknow in the case of Sahakari Ganna Vikas Samiti Ltd. V. ACIT (2024) 169 taxmann.com 300 (Lucknow-Trib.). v. Coordinate Bench, Rajkot in the case of Chakargadh Seva Sahakari Mandali Ltd.V. DCIT (CPC) (2021) 154 taxmann.com 228 (Rajkot – Trib.). 7. Respectfully following the above decisions and finding that the alleged disallowance of deduction under Chapter VIA has been made by the CPC prior to 01.04.2021, I find that CPC has exceeded the jurisdiction and therefore the impugned disallowance is uncalled for. Finding of ld.CIT(A) is set aside and deduction u/s.80P of the Act at Rs.5,29,124/- stands allowed. Ground of appeal No.1 raised by the assessee is allowed. 8. Apropos to alternate Ground No.2 regarding 80P(2)(c)(ii) deduction at R.50,000/- is concerned, since deduction u/s.80P of the Act at Rs.5,29,124/- has been allowed, therefore, alternate ground becomes infructuous. Printed from counselvise.com ITA No.2326/PUN/2025 Dagadudhondu Yeola Nagari Sahakari Patsanstha Maryadit 4 9. In the result, the appeal of the assessee is allowed as per the terms indicated hereinabove. Order pronounced on this 12th day of February, 2026. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; दिन ंक / Dated : 12th February, 2026. Satish आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The Pr. CIT concerned. 4. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “SMC” बेंच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. ग र्ड फ़ इल / Guard File. आिेश नुस र / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अधिकरण, पुणे / ITAT, Pune Printed from counselvise.com "