THE PERUNDURAI PRIMARY AGRICULTURAL AND RURAL DEVELOPMENT BANK, ERODE V. DCIT,CPC, BENGALURU

ITA 179/CHNY/2023

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The case involves The Perundurai Primary Agricultural and Rural Development Bank Ltd, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The dispute centered on the disallowance of a deduction claim under section 80P of the Income Tax Act, 1961, for the assessment year 2018-19. The assessee had filed a nil income return claiming deductions, which were disallowed by the DCIT CPC, Bengaluru, due to the return not being filed by the due date. The CIT(A) upheld this decision. The assessee's appeal to the Tribunal argued that the CPC should have awaited the outcome of a condonation petition filed with the CBDT before processing the return.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135324 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 06-06-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 12-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 119(2)(b); 143(1); 80P; 139(1)

Judgement Text

आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ SMC BENCH, CHENNAI ŵी वी दुगाŊ राव Ɋाियक सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member आयकर अपील सं./I.T.A. No.179/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2018-19 The Perundurai Primary Agricultural and Rural Development Bank Ltd, 112, Agrahara Street, Perundurai, Tamil Nadu 638 052. [PAN:AAAAT7088E] Vs. The Deputy Commissioner of Income Tax, CPC, Bengaluru. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri S. Sridhar, Advocate (Erode) ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 07.06.2023 घोषणा की तारीख /Date of Pronouncement : 09.06.2023 आदेश /O R D E R This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi dated 27.12.2022 relevant to the assessment year 2018-19. 2. Brief facts of the case are that the assessee has filed the return of income for the assessment year 2018-19 on 28.12.2018 admitting Nil income after claiming deduction under section 80P of the Income Tax Act, 1961 [“Act” in short]. The DCIT CPC, Bengaluru, while processing the I.T.A. No. 179/Chny/23 2 return of income disallowed the claim of the assessee under section 80P of the Act and passed intimation under section 143(1) of the Act dated 01.10.2019. 3. The assessee carried the matter in appeal before the ld. CIT(A). Since the assessee has not filed the return of income within the due date of filing as specified under section 139(1) of the Act, the ld. CIT(A) confirmed the assessment and dismissed the ground raised by the assessee. 4. On being aggrieved, the assessee is in appeal before the Tribunal. By filing copy of the application under section 119(2) of the Act, the ld. Counsel for the assessee has submitted that the assessee has filed a condonation petition before the CBDT under section 119(2) of the Act to condone the delay in filing the return of income. It was further submission that despite having time to process the return of income under section 143(1) of the Act, the CPC, Bengaluru hurriedly processed the same by denying the claim of deduction under section 80P of the Act. 5. On the other hand, the ld. DR supported the orders of authorities below. 6. Heard both the sides, perused the materials available on record I.T.A. No. 179/Chny/23 3 and gone through the orders of authorities below. In this case, since the return of income was not filed within the due date of filing as specified under section 139(1) of the Act, the DCIT, CPC, Bengaluru disallowed the claim of deduction under section 80P of the Act and the ld. CIT(A) confirmed the assessment order. 6.1 Before the Tribunal, the ld. Counsel for the assessee has argued that despite having time to process the return of income under section 143(1) of the Act, DCIT-CPC, Bengaluru hurriedly processed the return of income under section 143(1) of the Act without waiting for the outcome of the condonation petition filed before the CBDT. In view of the fact that the assessee has filed an application for condonation of delay before the CBDT under section 119(2)(b) of the Act, it is opined that once the delay condonation is pending before the CBDT, the Department ought to have waited for the decision of the CBDT, for the reason that, if the CBDT condone the delay, the claim of the assessee has to be considered in accordance with law. Therefore, the appellate order passed by the ld. CIT(A) is set aside and remit the matter back to the file of the ld. CIT(A) to wait for the decision on the condonation petition filed by the assessee before the CBDT and thereafter pass order in accordance with law. 7. In the result, the appeal filed by the assessee is allowed for I.T.A. No. 179/Chny/23 4 statistical purposes. Order pronounced on 09 th June, 2023 at Chennai. Sd/- (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 09.06.2023 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3.आयकर आयुƅ/CIT, 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF.