THE CHENNAI CORPORATION OFFICIALS CO-OPERATIVE SOCIETY LIMITED , CHENNAI V. ADIT,CPC, BENGALURU

ITA 33/CHNY/2023

AI Insights

The case involves The Chennai Corporation Officials Co-operative Society Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The primary issue was the disallowance of deductions claimed under section 80P of the Income Tax Act, 1961, due to the belated filing of the income tax return for the assessment year 2018-19. The Assessing Officer and subsequently the CIT(A) dismissed the appeal on the grounds that the return was not filed within the due date as prescribed under section 139(1) of the Act, thus not fulfilling the criteria laid down under section 80AC. The Tribunal, however, directed the CIT-8, Chennai to refer the condonation of delay petition to the CBDT and restored the matter back to the Assessing Officer pending the decision on the condonation petition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127455 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Condonation of delay
• Section: 143(3); 139(1)

Judgement Text

आयकर अपील य अ धकरण, ‘सी’ यायपीठ, चे नई IN THE INCOME TAX APPELLATE TRIBUNAL , ‘C’ BENCH, CHENNAI ी महावीर संह, उपा य एवं ी जी. मंज ु नाथ, लेखा सद&य के सम BEFORE SHRI MAHAVIR SINGH, VICE-PRESIDENT AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER आयकरअपीलसं./I. T. A. No. 3 3/ Ch n y/ 2 02 3 ( नधा रणवष / A s s e s sm e nt Yea r : 2 0 1 8- 1 9 ) The Chennai Corporation Officials Co- operative Society Ltd. No.5125, 5125, Ripon Buildings, EVR Periyar Salai, Park Town, Chennai-600 003. V s The ADIT., Centralized Processing Center Bengaluru-560 500. P AN: A AA BT 2 6 8 8 P (अपीलाथ /Appellant) ( यथ /Respondent) अपीलाथ क ओरसे/ Appellant by : Mr. B.Suresh, C.A यथ क ओरसे/Respondent by : Mr. P.Sajit Kumar, JCIT स ु नवाईक तार ख/D a t e o f h e a r i n g : 29.03.2023 घोषणाक तार ख /D a t e o f P r o n o u n c e m e n t : 29.03.2023 आदेश / O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of order passed by the Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1047328409(1) dated 15.11.2022. The assessment was completed by the National Faceless Appeal Centre (NFAC), Delhi for relevant assessment year 2018-19 u/s. 143(3) r.w.s 143(3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter “the Act”) vide order dated 17.02.2021. 2 ITA No. 33/Chny/2023 2. At the outset, learned counsel for the assessee stated that the CIT(A) has simply dismissed appeal of the assessee without considering issues on merits and giving reason that return of income filed by the assessee is belated return. The learned counsel for the assessee stated that the assessee has filed petition u/s.119(2)(b) of the Act, before the Commissioner of Income Tax-8, Chennai for condonation of delay in filing of appeal. The learned counsel for the assessee particularly took us through relevant ground no.4, which reads as under:- “Ld.CIT(A) erred in denying the deduction claimed u/s.80P in spite of the fact of condonation petition was brought to his notice with a specific request to wait till the disposal by CIT(A).” 3. The learned counsel for the assessee stated that though petition for condonation of delay in filing of appeal is to be filed u/s.119(2)(b) of the Act is to be addressed to Central Board of Direct Taxes (CBDT) and not to CIT, but, in any case, the CIT can refer the matter or petition to CBDT, qua, this Bench can give direction. To this proposition, the Ld. Senior DR also supported that petition can be sent to CBDT by the Commissioner of Income Tax. 3 ITA No. 33/Chny/2023 4. After hearing both the sides and going through facts of the case, we noted that the assesseeis a co-operative society claiming deduction u/s.80P(2)(a)(i), 80P(2)(d) & 80P(2)(c) of the Act. The Assessing Officer disallowed claim of deduction and added to returned income an amount of Rs.5,17,66,960/- for the reason that return filed by the assessee is belated return and for this, he observed in para 6 of his order as under:- “6. After considering submissions made by the assessee and other supporting details the gross total deduction claimed by the assessee to the tune of Rs.5,17,66,960/- is income of the assessee for the year under consideration by the virtue of section 80AC(II) of the Income Tax Act, 1961. Accordingly, Rs.5,17,66,950/- is disallowed under chapter VIA of the Income Tax Act, 1961 as claimed by the assessee for late filing of ITR for the A.Y 2018-19. Since the assessee has under reported his income, therefore penalty u/s.270A of the Income Tax Act, 1961 is initiated separately.” Aggrieved, the assessee preferred appeal before the CIT(A). 5. The CIT(A) also confirmed action of the Assessing Officer by stating that there is statutory and mandatory requirement of filing of return of income before due date as prescribed u/s.139(1) of the Act for the purpose of claiming any deduction 4 ITA No. 33/Chny/2023 u/s.80P of the Act. Since, the assessee had not fulfilled criteria laid down u/s.80AC of the Act, the Assessing Officer has rightly disallowed claim of deduction and the CIT(A) accordingly, dismissed appeal of the assessee. Aggrieved, now the assessee is in appeal before the Tribunal. 6. The assessee now before us filed a copy of condonation of delay petition filed before Commissioner of Income Tax-8, Chennai dated 01.01.2021. The facts are that for the relevant assessment year 2018-19, the assessee filed return of income on 30.03.2019, whereas due date for filing of return u/s.139(1) was 31.10.2018. Admittedly, return of income was not filed by the assessee within due date as prescribed under the provisions of section 139(1) of the Act. The assessee moved petition before the Commissioner of Income Tax-8, Chennai for condonation of delay u/s.119(2)(b) of the Act, for condoning delay in filing of return of income. Now, as argued by the Ld.Sr. DR that condonation petition has to be filed before the CBDT and not before CIT. We think, let this condonation of delay petition be treated as condonation petition filed and the CIT-8, Chennai is directed to refer this petition to CBDT, who 5 ITA No. 33/Chny/2023 will consider the same as per law. The matter is being restored back to the file of the Assessing Officer, who will also pursue with CBDT and the assessee will also pursue for early disposal of condonation petition before the CBDT. 7. In term of above, the matter is restored back to the file of the Assessing Officer. In case, the CBDT condones delay, the Assessing Officer shall reconsider the issues on merits, after allowing reasonable opportunity of being heard to the assessee. In term of above, appeal of the assessee is allowed for statistical purposes. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 29 th March, 2023 Sd/- Sd/- (जी. मंज ु नाथ ) (महावीर संह) ( G.Manjunatha ) (Mahavir Singh) लेखा सद%य / Accountant Member उपा य / Vice-President चे(नई/Chennai, )दनांक/Date: 29.03.2023 DS आदेश क त+ल,प अ-े,षत/Copy to: 1. Appellant 2. Respondent 3. आयकर आय ु .त (अपील)/CIT(A) 4. आयकर आय ु .त/CIT 5. ,वभागीय त न2ध/DR 6. गाड फाईल/GF.