GEONKHALI CO-OPERATIVE AGRICULTURAL CREDIT SOCIETY LIMITED,PURBA MEDINIPUR V. I.T.O., WARD - 27(1), HALDIA

ITA 1958/KOL/2024

AI Insights

The case involves Geonkhali Co-Operative Agricultural Credit Society Limited, which appealed against the order of the Commissioner of Income-tax (Appeals) confirming the addition of \\u20b97,84,470 to the assessee's income. The primary issue was the denial of deduction under Section 80P of the Income Tax Act by the Assessing Officer, on the grounds that the assessee did not file a return of income for the Assessment Year 2017-18. The Tribunal examined the relevant sections of the Income Tax Act, particularly Section 80A(5) and Section 80AC, and concluded that the assessee was entitled to the deduction despite not filing a return for the said year.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126894 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MADHUMITA DAS
• Assessee Lawyers: S.M. SURANA
• Keywords: Set aside; Chapter VIA; Commissioner; Exempt; Affirmed
• Section: 80P; 10B; 10AA; IC

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM ITA No. 1958/KOL/2024 (Assessment Year:2017-18) Geonkhali Co-Operative Agricultural Credit Society Limited Geonkhali, Haldia, Purba Medinipur, West Bengal, 721603 Vs. I.T.O., Ward - 27(1) Income Tax Office, Basudebpur, Talpukur, Khanjan Chak, Haldia, Purba Medinipur, West Bengal, 721101 (Appellant) (Respondent) PAN No. AACAG3083E Assessee by : Shri S.M. Surana, AR Revenue by : Ms. Madhumita Das, DR Date of hearing: 16.04.2025 Date of pronouncement : 24.04.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals) Addl/ JCIT(A)-9, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 09.07.2024 for the AY 2017-18. 02. The only issue raised by the assessee is against the order of ld. CIT (A) confirming the order of ld. AO wherein the addition of ₹7,84,470/- was made. 03. The facts in brief are that the assessee did not file any return of income during the year whereas, according to the audited profit and loss account and balance sheet reported income of the assessee was ₹7,84,475/-. The assessee is a primarily agricultural credit cooperative society engaged in providing banking facilities to its member and Page | 2 ITA No.1958/KOL/2024 Geonkhali Co-Operative Agricultural Credit Society Limited; A.Y. 2017-18 therefore, the income is exempt u/s 80P of the Act. The ld. AO made an addition on the ground that since the assessee has not filed any return of income for the instant assessment year and therefore it is not entitled to deduction u/s 80P of the Act in terms of sub-section 80A of the Act under Chapter VIA. 04. In the appellate proceedings, the ld. CIT (A) simply affirmed the order of the ld. Assessing Officer. 05. After hearing the rival contentions and perusing the materials available on record, I find that the ld. AO has denied the deduction u/s 80P of the Act to the assessee on the ground that the assessee has not filed any return of income. I have perused the provisions of Section 80A(5) of the Act which provides that where the assessee fails to make a claim in his return of income for any deduction under section 10A or section 10AA or section 10B or section 10BA or under any provision of this Chapter under the heading \"C.—Deductions in respect of certain incomes\", no deduction shall be allowed to him thereunder. Therefore, I note that there is no whisper of deduction u/s 80P of the Act under sub section 5 of Section 80A of the Act. Besides, I have perused the provisions of Section 80AC of the Act which provide that while computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after (i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80- IC or section 80-ID or section 80-IE; (ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading \"C.—Deductions in respect of certain incomes\", no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified Page | 3 ITA No.1958/KOL/2024 Geonkhali Co-Operative Agricultural Credit Society Limited; A.Y. 2017-18 under sub-section (1) of section 139. Therefore, a perusal of the above provisions of section 80AC(ii) is clear that there is no requirement under the Act to file the return of income to claim deduction u/s 80P of the Act prior to A.Y. 201-19. The instant assessment year before us is A.Y. 2017-18 and accordingly, I am of the view that the assessee cannot be denied the deduction u/s 80P of the Act. Accordingly, I set aside the order of ld. CIT (A) and direct the ld. AO to allow the addition. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 24.04.2025. Sd/- (RAJESH KUMAR) (ACCOUNTANT MEMBER) Kolkata, Dated: 24.04.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "