ENGANDIYUR FARMERS SERVICE CO-OPERATIVE BANK LIMITED NO F 977,KUNDALIYUR V. INCOME TAX OFFICER, GURUVAYUR

ITA 262/COCH/2025

AI Insights

The case involves the Engandiyur Farmers Service Co-op. Bank Ltd., which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the disallowance of a deduction claimed under section 80P(2)(a)(i) of the Income Tax Act, 1961, for the Assessment Year 2023-24. The deduction was initially claimed for Rs. 3,46,60,360 but was disallowed by the CPC due to the belated filing of the income tax return. The CIT(A) confirmed this disallowance, leading to the present appeal. The primary legal issue was the application of section 80AC, which requires strict adherence to the deadline for filing tax returns to qualify for deductions under Chapter VIA.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668788 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNDARASAN S.
• Assessee Lawyers: RAMDAS M.

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 262/Coch/2025 Assessment Year: 2023-24 Engandiyur Farmers Service Co-op. Bank Ltd. .......... Appellant Door No. XIV/289, Kundaliyur P.O., Thrissur [PAN: AAAAE7670D] vs. The Income Tax Officer, Ward 1 & TPS .......... Respondent Guruvayur Appellant by: Shri Ramdas M., CA Respondent by: Shri Sundarasan S., CIT-DR Date of Hearing: 26.05.2025 Date of Pronouncement: 23.06.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 05.02.2025 for Assessment Year (AY) 2023-24. 2. Brief facts of the case are that the appellant is a co-operative society registered under the Kerala State Co-operative Societies Act, 1969. It is classified as primary agricultural credit co-operative society. It is engaged in accepting deposits from members and 2 ITA No. 262/Coch/2025 Engandiyur Farmers Service Co-op. Bank Ltd. lending money to its members and also engaged in trading of certain goods. The return of income AY 2023-24 was filed on 19.12.2023 disclosing Nil income after claiming deduction u/s. 80P(2)(a)(i) of the Income Tax Act, 1961 (the Act) of Rs. 3,46,60,360/-. The said return of income was processed by CPC u/s. 143(1) of the Act vide intimation dated 03.05.2024 by making adjustment of allowance of the claim for deduction u/s. 80P(2)(a)(i) of the Act for the reason that the return of income was not filed within the due date prescribed u/s. 139(1) of the Act. Against the said intimation an appeal was filed before the CIT(A), who vide the impugned order confirmed the adjustment made by the CPC by placing reliance on the provisions of section 80AC of the Act. 3. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 4. We have heard the rival contentions and perused the material available on record. The only issue that arises for our consideration is whether the CPC was justified in making adjustment by disallowing the claim u/s. 80P(2)(a)(i) of the Act by placing reliance on the provisions of section 80AC of the Act. Admittedly, the return of income was filed belatedly. Provisions of section 80AC provided that no deduction shall be allowed under the provisions of Chapter VIA unless the return of income was filed within the prescribed date provided u/s. 139(1) of the Act. These provisions were amended 3 ITA No. 262/Coch/2025 Engandiyur Farmers Service Co-op. Bank Ltd. w.e.f. AY 2018-19 and it is a mandatory condition for claiming deduction u/s. 80P of the Act. Therefore, we are of the considered opinion that the CPC was justified in making the adjustment by disallowing the claim u/s. 80P of the Act., as it amounts to “incorrect claim” as defined u/s. 143(1) of the Act. 5. In the result, the appeal filed by the assessee stands allowed. Order pronounced in the open court on 23rd June, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 23rd June, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "