K1444 METTUPALAYAM CO-OP. BUILDING SOCIETY LIMITED, COIMBATORE V. DCIT CPC , BEGNALURU

ITA 46/CHNY/2023

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The case involves K1444 Mettupalayam Co-op. Building Society Limited, which appealed against the order of the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, Delhi. The appeal was related to the disallowance of a deduction claimed under section 80P of the Income Tax Act, 1961, for the assessment year 2018-19. The primary contention was the rejection of the deduction claim because the society did not file its return of income by the due date under section 139(1) of the Act. The society had filed a condonation petition under section 119(2)(b) of the Act, which was still pending with the CBDT at the time of the CIT(A)'s decision. The Tribunal found that the CIT(A) had erred in dismissing the appeal without awaiting the outcome of the condonation petition and thus remitted the matter back to the Assessing Officer.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 135420 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: C
• Next Hearing Date: 06-03-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 12-01-2023
• 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 जी. मंजुनाथा, लेखा सद˟ के समƗ Before Shri V. Durga Rao, Judicial Member & Shri G. Manjunatha, Accountant Member आयकर अपील सं./I.T.A. No.46/Chny/2023 िनधाŊरण वषŊ/Assessment Year: 2018-19 K1444 Mettupalayam Co-op. Building Society Limited, Co-operative Colony, Mettupalayam, Coimbatore 641 301. [PAN: AADAM3770D] 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 : 07.03.2023 घोषणा की तारीख /Date of Pronouncement : 29.03.2023 आदेश /O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: 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 26.12.2022 relevant to the assessment year 2018-19. 2. Brief facts of the case are that the assessee filed the return of income for the assessment year 2018-19 on 23.03.2019 declaring total income at ₹.6,64,021/- after claiming deduction under section 80P of I.T.A. No.46/Chny/23 2 the Income Tax Act, 1961 [“Act” in short]. While processing the return of income under section 143(1) of the Act dated 04.07.2019, the CPC disallowed the claim of deduction under section 80P of the Act on the ground that the society did not file the return of income before the due date under section 139(1) of the Act. Against the intimation under section 143(1) of the Act, the assessee filed a petition under section 154 of the Act requesting the Assessing Officer to wait for the outcome of the condonation petition filed before the CBDT under section 119(2)(b) of the Act. Since the outcome of the condonation petition filed before the CBDT was not brought on record, the Assessing Officer, CPC rejected the rectification petition filed by the assessee. 3. The assessee carried the matter in appeal before the ld. CIT(A) and submitted that the assessee has filed condonation petition under section 119(2)(b) of the Act before the CBDT requesting for condonation of delay in filing the return of income and the same is pending. Therefore, the assessee has requested the ld. CIT(A) to keep the appeal pending till the disposal of condonation petition by the CBDT. After considering the submissions of the assessee, and since the assessee could not file the approval of the CBDT towards condonation of delay in filing the appeal, the ld. CIT(A) decided the I.T.A. No.46/Chny/23 3 appeal on merits by dismissing the appeal of the assessee as the assessee did not file the return of income within the due date of filing under section 139(1) of the Act. 4. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the ld. CIT(A) has erroneously dismissed the appeal despite the assessee has filed an application for condonation of delay before the CBDT on 09.10.2019. 5. On the other hand, the ld. DR strongly supported the orders of authorities below. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The case of the assessee is that despite having time to process the return of income under section 143(1) of the Act, the CPC, Bengaluru hurriedly processed the same on 04.07.2019 by denying the claim of deduction under section 80P of the Act without waiting for the outcome of the condonation petition filed before the CBDT. By filing copy of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, the ld. Counsel for the assessee prayed for I.T.A. No.46/Chny/23 4 suitable directions. 6.1 We have gone through the copy of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act. In view of the petition for condonation of delay filed before the CBDT under section 119(2)(b) of the Act, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to decide the issue afresh after considering the decision of the CBDT on the petition for condonation of delay filed by the assessee under section 119(2)(b) of the Act. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29 th March, 2023 at Chennai. Sd/- Sd/- (G. MANJUNATHA) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER Chennai, Dated, 29.03.2023 Vm/- I.T.A. No.46/Chny/23 5 आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ (अपील)/CIT(A), 4. आयकर आयुƅ/CIT, 5. िवभागीय Ůितिनिध/DR & 6. गाडŊ फाईल/GF.