GC 2351 MANAMPATHY PACCS,KANCHIPURAM V. ITO,WARD-1, KANCHEEPURAM

ITA 1462/CHNY/2023

AI Insights

The case involves the Manampathy Primary Agricultural Coop Credit Society, which appealed against the order of the CIT(A), National Faceless Appeal Center, Delhi, concerning the assessment year 2019-20. The primary issue was the denial of deduction under section 80P of the Income Tax Act due to the filing of a belated return. The Central Processing Center (CPC) had made an adjustment under section 143(1)(a), which was sustained by the CIT(A). The assessee argued that the CPC's powers to make such adjustments were amended only from April 1, 2021, and cited a CBDT circular that empowered CCsIT to condone delays in filing returns for cooperative societies claiming deductions under section 80P. The Tribunal decided to set aside the lower authorities' order and await the CCIT's decision on the condonation petition filed by the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472484 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-07-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 12-12-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM
• Assessee Lawyers: I. DINESH
• Keywords: Condonation of delay; Set aside
• Section: 80P

Judgement Text

" आयकर अपीलीय अधिकरण, ‘‘ए’/ ‘बी’/ ’सी’/ ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI श्री मनु क ुमार गिरि, न्याययक सदस्य एवं श्री अममताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1462/Chny/2023 निर्धारण वर्ा /Assessment Year: 2019-20 GC2351 Manampathy Primary Agricultural Coop Credit Society, Manampathy Village & Post, Chengalpet Taluk, Kanchipuram, TN-603105. Vs. Income Tax Officer, Ward-1, Kanchipuram Chennai [PAN: AABAG2597A] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलधर्थी की ओर से/ Appellant by : Shri I.Dinesh, Advocate for B.Sakthivel, Advocate. प्रत्यर्थी की ओर से /Respondent by : Ms.Gouthami Manivasagam, JCIT सुिवधई की तधरीख/Date of Hearing : 29.07.2024 घोर्णध की तधरीख /Date of Pronouncement : 23.10.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/NFAC/S/250/2023-24/1053587740(1) dated 07.06.2023 of the Learned Commissioner of Income Tax [herein after “CIT(A), National Faceless Appeal Center[NFAC], Delhi, for the assessment years 2019- 20. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 07.06.2023 passed by NFAC, Delhi. ITA No. 1462 /Chny/2024 :- 2 -: 2.0 The Ld. Counsel for the assesse informed that the only issue in the present appeal, raised by the assesse being a primary agricultural cooperative credit society is regarding the action of CPC in making an adjustment u/s 143(1)(a) which has had the effect of denying the assesse the benefit of deduction u/s 80P. It was submitted that the assesse had filed belated return and the CPC had taken the same as ground to deny the assesse benefit of deduction u/s 80P. The Ld. CIT(A) concurred with the action of the CPC and sustained its adjustment. The Ld. Counsel for the assesse argued that CPC has acquired powers to make adjustment u/s 143(1)(a) only upon amendment to the finance act effective from 01.04.2021. The Ld. Counsel also informed that in the light of CBDT circular No.13 of 2023 empowering CC’sIT to condone delay, in filing of return by cooperative societies qua their claim of deduction u/s. 80P, it has also made a petition dated 18.04.2024 to the jurisdictional CCIT and that the same is pending conclusion. It was submitted that the assesse has fair chances of succeeding before the said authority qua condonation of delay in its filing of return. The Ld. DR relied upon the order of Ld. CIT(A) but acknowledged the CB DT circular supra. ITA No. 1462 /Chny/2024 :- 3 -: 3.0 We have heard rival submissions in the light of material available on records. The only controversy is regarding denial of deduction u/s 80P to the assesse on the premise of having filed a belated return. The CBDT has already acknowledged through its circular No.13 supra that there is a case of grievance from cooperative societies pertaining to assessment years 2018-19 to AY 2022-23 wherein deduction u/s 80P has been denied on account of belated returns. Accordingly, as per para-4 of the impugned circular in order to mitigate genuine hardships CCsIT / DGsIT have been empowered to condone delay in cases confirming to certain conditions. It is an admitted fact on record that the assesse has filed a petition for condonation of delay before the jurisdictional CCIT and the same was reported to be pending. Accordingly, we are of the view that in the interest of justice, the decision of jurisdictional CCIT should be considered while deciding upon the issue of availability of deduction u/s 80P to the assesse. Accordingly, we set aside the order of lower authorities and direct the assessing officer to await the decision of jurisdictional CCIT qua assesse’s petition for condonation of delay. In the event the assesse succeeds before the jurisdictional CCIT, the deduction u/s 80P would have to be allowed. In the result grounds of appeal raised by the assesse are allowed for statistical purposes. ITA No. 1462 /Chny/2024 :- 4 -: 4.0 In the result, the appeal raised by the assesse is allowed for statistical purposes. Order pronounced on 23rd, October, 2024. Sd/- Sd/- (मनु क ुमधर गिरि) (Manu Kumar Giri) न्याययक सदस्य / Judicial Member (अममताभ शुक्ला) (amitabh shukla) लेखा सदस्य /Accountant Member चेन्नई/Chennai, ददनाांक/Dated: 23rd , October, 2024. KB/- आदेश की प्रयिललपप अग्रेपिि/Copy to: 1. अपीलार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. विभागीय प्रविविवि/DR 5. गार्ड फाईल/GF "