Chanra Vividoddesha Sahakara Sangha Niyamitha, Bangalore V. Income-Tax Officer, Ward-3(2)(1), Bangalore

ITA 672/BANG/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0349 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 30-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-09-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 143(3); 80P; 250; 139(1); 139(4)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC - C” BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT ITA No.672/Bang/2023 Assessment Year : 2018-19 M/s. Chandra Vividoddesha Sahakara Sangha Niyamitha, CA Site N.04, 2 nd Cross, 1 st Stage, 2 nd Phase, Chandra Layout, Bengaluru – 560 040. PAN : AAAC 7437 L Vs.ITO, Ward – 3(2)(1), Bengaluru. APPELLANTRESPONDENT Assessee by:Shri.Kashinath Kalmath, Advocate Revenue by :Shri.Ganesh R Ghale, Advocate, Standing Counsel for Revenue. Date of hearing:31.10.2023 Date of Pronouncement:31.10.2023 O R D E R This appeal at the instance of the assessee is directed against CIT(A)’s order dated 14.07.2023, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19. 2. The solitary issue raised is whether the claim of deduction under section 80P of the Act is to be disallowed on account of delay in filing the return of income under section 139(1) of the Act. 3. Brief facts of the case are as follows: Assessee is a co-operative society registered under the Karnataka Co- operative Societies Act, 1959. For the Assessment Year 2018-19, the return of ITA No.672/Bang/2023 Page 2 of 4 income was filed on 27.03.2019 declaring ‘Nil’ income, after claiming deduction under section 80P(2)(a)(i) of the Act, amounting to Rs.25,09,754/-. The assessment was selected for scrutiny and notice under section 143(3) of the Act, was issued on 22.09.2019. The assessment was completed under section 143(3) r.w.s. 143(3A) and 143(3B) of the Act vide order dated 04.03.2021. In the assessment completed, the assessee’s claim of deduction under section 80P(2)(a)(i) of the Act amounting to Rs.25,09,754/- was denied for the reason that the return of income was not filed within the time limit prescribed under section 139(1) of the Act. In holding so, the AO relied on the amended provisions of section 80AC of the Act, w.e.f. Assessment Year 2018-19. 4. Aggrieved by the Assessment Order denying claim of deduction under section 80P(2)(a)(i) of the Act, assessee preferred appeal before the First Appellate Authority (FAA). Before the FAA, there was no written submissions nor reply to the notices issued to the assessee. Consequently, the appeal of the assessee was dismissed in limine by holding that assessee has failed to substantiate its claim of deduction under section 80P(2)(a)(i) of the Act. 5. Aggrieved by the order of the CIT(A), assessee has preferred the present appeal before the Tribunal. The learned Counsel for the assessee relied on the order of the Delhi Bench of the Tribunal in the case of M/s. Fiberfill Engineers Vs. ACIT in ITA No.1853/Del/2015 (order dated 25.02.2016) and contended that section 80P of the Act, being an exemption provision, should be interpreted liberally and the claim should not be denied since assessee had filed the return of income within the due date prescribed under section 139(4) of the Act. 6. The learned Standing Counsel, on the other hand, submitted that section 80AC of the Act has been amended w.e.f. 01.04.2018 wherein it has been clearly mentioned deduction under section 80P of the Act is to be granted only if the ITA No.672/Bang/2023 Page 3 of 4 assessee has filed the return of income on or before the due date specified under section 139(1) of the Act. The learned Standing Counsel relied on CBDT’s Circular No.13/2023 dated 26.07.2023 and submitted that assessee is free to move a condonation petition before the jurisdictional CCIT for condoning the delay in filing the return of income. 7. In reply, the learned AR submitted that the assessee had already filed a delay condonation petition before the administrative CCIT in the month of September, 2023, and the same is pending before him. A copy of the same was placed on record (which was not legible). 8. I have heard the rival submissions and perused the material on record. By virtue of amended provision to section 80AC of the Act (for and from Assessment Year 2018-19), the assessee, if it does not file the return of income within the time prescribed under section 139(1) of the Act, the claim of deduction under section 80P cannot be granted unless the delay in filing the return of income is condoned by the concerned CCIT. In the instant case, the assessee has filed petition for condonation of delay and the same is pending. Therefore, in the interest of justice, the issue is restored to the files of the AO. The AO is directed to consider the claim of deduction under section 80P in the event the concerned authority has taken a decision with regard to the assessee’s petition for condonation of delay in filing the return of income under section 139(1) of the Act. It is ordered accordingly. ITA No.672/Bang/2023 Page 4 of 4 9. In the result, appeal filed by the assessee is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (LAXMI PRASAD SAHU) (GEORGE GEORGE K) Accountant Member Vice President Bangalore. Dated: 31.10.2023. /NS/* Copy to: 1.Appellants2.Respondent 3.DRP4.CIT 5.CIT(A)6.DR, ITAT, Bangalore. 7. Guard file By order Assistant Registrar, ITAT, Bangalore.