Pasarlapudilanka Primary Agricultural Co Operative Credit Society, Pasarlapudilanka V. Income Tax Officer, Ward-2., Amalapuram

ITA 19/VIZ/2022

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 4140 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 24-01-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 26-01-2022
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: APARNA VILLURI
• Section: 143(3); 143(1); 80P; 80IA; 80IC; 80IC

Judgement Text

आयकरअपीलीयअधिकरण, धिशाखापटणम “SMC” पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM “SMC” BENCH, VISAKHAPATNAM श्री द ु व्वूरु आर एल रेड्डी, न्याधयक सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER आयकर अपील सं./I.T.A.No.19/Viz/2022 (ननधधारण वर्ा / Assessment Year : 2018-19) Pasarlapudilanka Primary Agricultural Co-operative Credit Society, No.3331, 3-216, Main Road Pasarlapudilanka, East Godavari Dist. [PAN : AAAAN9795N] Vs. Income Tax Officer Ward-2 Amalapuram (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A.No.132/Viz/2022 (ननधधारण वर्ा / Assessment Year : 2018-19) Kapileswarapuram Large Sized Cooperative Credit Society Ltd. Kapileswarapuram [PAN : AABAK1504B] Vs. Income Tax Officer Ward-1 Kakinada (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Dr.Aparna Villuri, DR सुनवधई की तधरीख / Date of Hearing : 25.01.2024 घोर्णध की तधरीख/Date of Pronouncement : 30.01.2024 आदेश /O R D E R Per Shri Duvvuru RL Reddy, Judicial Member : These appeals are filed by the assessees against the orders of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless 2 I.T.A. No.19/Viz/2022 and 132/Viz/2022, A.Y.2018-19 Pasarlapudilanka Primary Agricultural Coop Credit Society Kapileswarapuram Large Sized Co-op Credit Society Appeal Centre (NFAC), Delhi dated 27.11.2021 and 21.04.2022, arising out of orders passed u/s 143(1) dated 07.06.2019 and 143(3) dated 10.03.2021 respectively of the Income Tax Act, 1961 (in short ‘Act’) dated for the Assessment Year (A.Y.) 2018-19. Since the grounds raised in these appeals are identical, these appeals are clubbed, heard together and a common order is being passed for the sake of convenience as under. Facts are extracted from 132/Viz/2022. 2. Brief facts of the case are that the assessee society registered with the Registrar of Cooperative Societies on 19.09.1986 is established to assist it’s members, who are rural farmers in their agricultural operations. The society has 2141 members, who belong to traditional farming community, who draw loans against mortgage of their lands, immovable property, gold / jewellery for their livelihood. The assessee society borrows from District Central Cooperative Bank (DCCB) for purchase of fertilizers and seeds for the purpose of distributing to its needy members, earns commission by marketing crops grown by the members, by procuring and delivering at the spots as designated by Andhra Pradesh State Civil Supplies Corporation Ltd.(APSCSCL). The society has filed it’s income tax return for the A.Y.2018-19, declaring nil income after claiming deduction of Rs.45,27,210/- u/s 80P of the Act. The 3 I.T.A. No.19/Viz/2022 and 132/Viz/2022, A.Y.2018-19 Pasarlapudilanka Primary Agricultural Coop Credit Society Kapileswarapuram Large Sized Co-op Credit Society CPC sent proposed adjustment u/s 143(1)(a), which issued an intimation u/s 143(1) disallowing section 80P deduction and assessing a total taxable income of Rs.45,27,210/-. 3. Aggrieved, the assessee preferred an appeal before the CIT(A) and the Ld.CIT(A) dismissed the appeal of the assessee. 4. Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal. 1. Section 143(1)(a) suffers from legal infirmity : Notice for proposed adjustments was issued stating that 80P deductions were an ‘incorrect claim’. As per section 143(1)(a)(ii), 80P deductions claimed does not fall under any conditions that are construed as incorrect claim in the Act. 2. Section 143(1) does not contain section 80P disallowance : The benefit of 80P has not been denied u/s 143(1) and the denial of benefit is only in respect of those claims which falls under section 10AA or 80IA or 80IAB or 80 IB or 80IC or 80ID or 80IE, whereas our claim is u/s 80P which is not mentioned in section 143(1). 3. No mention of time limit for claiming deduction u/s 80P : There is no specific condition u/s 80P that the return should be filed within stipulated due date, to avail benefits there under. It only speaks about eligible incomes for which deduction u/s 80P can be claimed. Further, 80A(5) mandates the deductions to be claimed in the return to become eligible. 4. Improper updation of Income Tax (IT) portal for A.Y.2018-19. The IT system enabled the return to be uploaded with the relief available under section 80P for A.Y.2018-19. The system was disallowing 80P with effect from subsequent A.Y.2019-20 only, if return filed after the stipulated date. Hence the application of 80AC(ii) was amended in the software only from AY 2019-2020 and tolerated for A.Y.18-19. 4 I.T.A. No.19/Viz/2022 and 132/Viz/2022, A.Y.2018-19 Pasarlapudilanka Primary Agricultural Coop Credit Society Kapileswarapuram Large Sized Co-op Credit Society 5. PACS did not under report income : Relying on the above facts, the PACS has disclosed all its incomes and claimed deductions genuinely. Hence there is no under reporting of income. We pray to kindly take the cognizance of above grounds appealed before you and allow us the deductions that have been claimed by us in the filed income tax return. Disallowance of section 80P would be harsh for a society engaging primarily in agricultural activity, whose members are farmers. 5. None appeared on behalf of the assessee. The Ld,AR filed a letter before the Tribunal stating that, for personal reasons, the Ld.AR is withdrawing vakalat in this case. The Ld.AR also stated that the same was communicated to the assessee by addressing a letter to the assessee to make alternative arrangements for pursuing the case. 6. Ld.DR submitted that similar cases were adjudicated by the Tribunal in favour of the revenue and against the assessee. She, therefore pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee. 7. I have heard the Ld.DR and perused the material placed on record. The Ld.AR filed a letter before me, pleading for withdrawal of the vakalat due to personal reasons. On merits also, on similar set of facts and circumstances, the appeals were adjudicated against the assessee, relying on the decision of Hon’ble High Court of Madras in the case of 5 I.T.A. No.19/Viz/2022 and 132/Viz/2022, A.Y.2018-19 Pasarlapudilanka Primary Agricultural Coop Credit Society Kapileswarapuram Large Sized Co-op Credit Society AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd. Vs. Deputy Commissioner of Income Tax. [2022] 138 taxmann.com 571 (Madras) (07.04.2021). Similar issue was adjudicated by the Tribunal in the case of Unagatla Large Sized Co-operative Credit Society Ltd., Chagallu Mandal vide I.T.A.No. 255/Viz/2021, dated 08.03.2023 against the assessee, relying on the decision of the Hon’ble High Court of Madras in the case of AA520 Veerappampalayam Primary Agricultural Cooperative Credit Society Ltd.(supra). For the sake of clarity and convenience, I extract relevant part of the order of the Hon’ble High Court of Madras as follows : “8. The provisions of section 80AC(ii) make it clear that any deduction that is claimed under Part C of Chapter VIA would be admissible only if the return of income in that case were filed within the prescribed due date. Thus no claim under any of the provisions of Part C of Chapter VIA would be admissible in the case of belated return. There is no dispute on this position. The date of filing of a return of income would be apparent on the face of return and upon a perusal thereof, it would be clear as to whether the return is a valid return, having been filed within the statutory time limit, or a belated one. This is mechanical exercise and one that can be carried out by the CPC, very much within the scope of section 143(1)(a)(ii) of the Act. Hence, I am of the view that the disallowance u/s 80P of the Act has been rightly made by the CPC and upheld by the Ld.CIT(A). Therefore, the grounds raised by the assessee are liable to be dismissed. In the result, the grounds raised by the assessee are dismissed. 6 I.T.A. No.19/Viz/2022 and 132/Viz/2022, A.Y.2018-19 Pasarlapudilanka Primary Agricultural Coop Credit Society Kapileswarapuram Large Sized Co-op Credit Society 8. In the result, appeals of the assessee are dismissed. Order pronounced in the open court on 30 th January, 2024. Sd/- (द ु व्वूरु आर.एल रेड्डी) (DUVVURU RL REDDY) न्याधयक सदस्य/JUDICIAL MEMBER Dated : 30.01.2024 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाऩरती/ The Assessee– Pasarlapudilanka Primary Agricultural Co- operative Credit Society, No.3331, 3-216, Main Road, Pasarlapudilanka, East Godavari Dist. (ii) Kapileswarapuram Large Sized Cooperative Credit Society Ltd. 1-21 Kapileswarapuram, Konaseema Dist. 2. रधजस्व/The Revenue – The Income Tax Officer, Ward-1, Kakinada 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनननध, आयकर अपीलीय अनधकरण, नवशधखधपटणम / DR,ITAT, Visakhapatnam 5..गधर्ा फ़धईल / Guard file आदेशधनुसधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam