ED281 KUTTAITHAYIRPALAYAM MILK PRODUCERS COOPERATIVE SOCIETY, ERODE V. ITO, WARD-1(1), , ERODE

ITA 429/CHNY/2023

AI Insights

The case involves the Kuttaithairpalayam Milk Producers Co-operative Society, which appealed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for the assessment years 2018-19 and 2019-20. The primary issue was the disallowance of deduction under section 80P of the Income Tax Act, 1961, due to the late filing of income tax returns. The assessee had filed a belated return and claimed a deduction, which was disallowed by the ADIT CPC, Bengaluru. The CIT(A) upheld this decision, leading to the current appeal. The Tribunal noted that the assessee had filed a condonation petition with the CBDT, and pending the decision on this petition, the matter was remitted back to the CIT(A).

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135146 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 28-05-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 02-04-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay; Set aside
• Section: 119(2)(b); 143(1); 80P; 139(1)

Judgement Text

आयकर अपीलीय अिधकरण, ‘सी’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI ŵी वी. दुगाŊ राव, Ɋाियक सद˟ एवं ŵी मनोज कु मार अŤवाल, लेखा सद˟ के समƗ । Before Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member आयकर अपील सं./I.T.A. Nos.429 & 430/Chny/2023 िनधाŊरण वषŊ/Assessment Years: 2018-19 & 2019-2020 ED281 Kuttaithairpalayam Milk Producers Co-operative Society, Vadakkuthairpalayam Post, Chithode via, Erode Taluk, Tamil Nadu 638 102. [PAN:AAAAE6749D] Vs. The Income Tax Officer, Ward 1(1), Erode. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : None ŮȑथŎ की ओर से/Respondent by : Shri P. Sajit Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 29.05.2023 घोषणा की तारीख /Date of Pronouncement : 29.05.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: Both the appeals filed by the assessee are directed against the different orders of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi both dated 03.02.2023 relevant to the assessment years 2018-19 and 2019-20. 2. Brief facts of the case are that the assessee has filed the return of income for the assessment year 2018-19 on 30.03.2019 admitting Nil income after claiming deduction under section 80P of the Income Tax Act, I.T.A. Nos. 429 & 430/Chny/23 2 1961 [“Act” in short] of ₹.5,89,693/-. The ADIT CPC, Bengaluru, while processing the 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 31.12.2020. Similarly, disallowance under section 80P of the Act was also made for the assessment year 2019-2020. 3. The assessee carried the matter in appeal before the ld. CIT(A) for both the assessment years under consideration. 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 and the assessee has not explained the reasons for the delay in filing the belated return, the ld. CIT(A) confirmed the assessment and dismissed the ground raised by the assessee for both the assessment years. 4. On being aggrieved, the assessee is in appeal before the Tribunal for both the assessment years. When the appeals were taken up for hearing, none appeared on behalf of the assessee, despite hearing notice has been issued. Hence, we proceed to decide the appeals on merits after hearing the ld. DR. 5. We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. In this case, I.T.A. Nos. 429 & 430/Chny/23 3 since the return of income for both the assessment years were not filed within the due date of filing as specified under section 139(1) of the Act, the ADIT, CPC disallowed the claim of deduction under section 80P of the Act. Since the assessee has not explained the reasons for the belated filing of return of income for both the assessment years, the ld. CIT(A) confirmed the disallowance made under section 80P(2) of the Act by the Assessing Officer. 6. Before the Tribunal, the assessee has raised a specific ground that the ld. CIT(A) erred in not considering the fact that ADIT-CPC, Bengaluru erred in hurriedly processing 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 petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, we are of the considered opinion 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, we set aside the order passed by the ld. CIT(A) 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 I.T.A. Nos. 429 & 430/Chny/23 4 thereafter pass order in accordance with law. Moreover, the assessee is also directed to furnish copy of the condonation petition filed before the CBDT. 7. In the result, both the appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open Court on 29 th May, 2023 at Chennai. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 29.05.2023 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.