JJ105 PERAMBAKKAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY,TIRUVALLUR V. ITO WARD 1, TIRUVALLUR

ITA 1498/CHNY/2024

AI Insights

The case involves the JJ105 Perambakkam Primary Agricultural Co-op. Credit Society, which appealed against the order of the Learned Commissioner of Income Tax (Appeals) that upheld the Assessing Officer's decision denying deduction under section 80P of the Income Tax Act due to late filing of the return. The Tribunal considered the circumstances of the delayed filing, which was attributed to the statutory audit requirements under the Tamil Nadu Co-op. Societies Act and the impact of the COVID-19 pandemic. The Tribunal noted a relevant CBDT circular that acknowledged the difficulties faced by cooperative societies in meeting tax return deadlines due to statutory audit delays and directed the Assessing Officer to reassess the case after the Chief Commissioner of Income Tax decides on the condonation of delay application.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 106942 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 14-08-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 20-05-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMUEL PITTA
• Assessee Lawyers: B.SURESH
• Keywords: Condonation of delay; Set aside

Judgement Text

"आयकर अपीलीय अिधकरण, ‘ए’ \u0001यायपीठ, चे\tई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI \u0001ी एबी टी. वक , \u000bाियक सद\u0011 एवं एवं एवं एवं \u0001ी अिमताभ शु\u0018ा, लेखा सद\t क े सम\u001b BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1498/Chny/2024 िनधा\u000eरण वष\u000e/Assessment Year: 2020-21 JJ105 Perambakkam Primary Agricultural Co-op. Credit Society, No.252, Nallathamman Koil Street, Perambakkam, Tiruvallur – 631 402. v. The ITO, Ward-1, Tiruvallur. [PAN: AABAJ 1902 E] (अपीलाथ\u0016/Appellant) (\u0017\u0018यथ\u0016/Respondent) अपीलाथ\u0016 क\u001a ओर से/ Appellant by : Mr.B. Suresh, CA \u0017\u0018यथ\u0016 क\u001a ओर से /Respondent by : Dr.Samuel Pitta, JCIT सुनवाईक\u001aतारीख/Date of Hearing : 14.08.2024 घोषणाक\u001aतारीख /Date of Pronouncement : 09.10.2024 आदेश / O R D E R PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee JJ105 Perambakkam Primary Agricultural Co-op. Credit Society against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter in short \"the Ld.CIT(A)”), Delhi, dated 12.04.2024 for the Assessment Year (hereinafter in short \"AY”) 2020-21. ITA No.1498/Chny/2024 (AY 2020-21) JJ105 Perambakkam Primary – Agricultural Co-op. Credit Society :: 2 :: 2. The brief facts are that the assessee is a Primary Agricultural Co-op. Credit Society and had filed its return of income (RoI) for AY 2020-21 on 20.04.2021 declaring gross total income of ₹40,71,382/-; and after claiming deduction of ₹40,71,382/- u/s.80P of the Income Tax Act, 1961 (hereinafter in short \"the Act”), total income was computed at Rs.NIL. The AO acknowledged that the assessee is a Primary Agricultural Co-op. Credit Society registered under the Co-op. Act & Co-op. Society Act. The AO also noted that Society is engaged in providing credit facilities to its members and that RoI of the assessee was selected for limited scrutiny; and the AO also noted that the assessee has filed ITR u/s.139(4) of the Act i.e. belatedly and has claimed deduction u/s.80P of the Act, which according to him is not allowable in view of the provisions of Sec.80AC of the Act. And since, the assessee didn’t file the return of income (RoI) before the due date specified u/s.139(1) of the Act, he denied deduction u/s.80P of the Act and determined total income at ₹40,71,382/- by assessment order dated 24.09.2022. 3. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A) who reiterated the action of the AO and dismissed the appeal. 4. Aggrieved, the assessee is in appeal before this Tribunal. 5. We have heard both the parties and perused the material available on record. We note that the aforesaid facts stated therein are not ITA No.1498/Chny/2024 (AY 2020-21) JJ105 Perambakkam Primary – Agricultural Co-op. Credit Society :: 3 :: disputed and therefore, it is not repeated for the sake of brevity. Before us, the Ld.AR of the assessee brought to our notice that for condoning the delay in filing of the return of income, the assessee has preferred application for condonation of delay vide letter dated 13.05.2024 before the Ld. Commissioner, Chennai. The Ld.AR explained the reason for delay in filing of the RoI, which according to him was that the assessee being registered under the Co-op. Societies Act, its accounts need to be audited by the Audit Department of the Government of Tamil Nadu (refer sec.80 of the Tamil Nadu Co-op. Societies Act). And since it is a statutory requirement i.e., the assessee had to undergo the audit-by-Audit Team of Government of Tamil Nadu; and the audit for AY 2020-21 was completed only on 07.06.2021 and immediately thereafter, the financials were signed on the same day (i.e.07.06.2021). It is noted that the due-date for filing of the return u/s.139(1) of the Act was 31.03.2021. (due-date for filing of return was extended up to 31.03.2021 due to Covid-19) and the assessee filed the return of income (RoI) on 20.04.2021 (delay of ‘20’ days) and one of the main reasons for belated completion of the statutory audit due to pandemic Covid-19 and therefore, couldn’t file the return in time. The Ld.AR drew our attention to the CBDT Circular No.13/2023 dated 26.07.2023, wherein, the CBDT after receiving several representations from several Co-op. Societies, has taken note of the difficulties faced by them [Co-op. Societies] while claiming deduction ITA No.1498/Chny/2024 (AY 2020-21) JJ105 Perambakkam Primary – Agricultural Co-op. Credit Society :: 4 :: u/s.80P of the Act for various AYs 2019-20 to AY 2022-23 and their prayer that delayed furnishing of return of income (RoI) be condoned and treat such returns as “returns furnished within due-date under sub- sec.(1) of sec.139 of the Act” because the delay in furnishing return of income (RoI) was caused due to delay in getting the accounts audited under the respective State Laws. Taking note of their plea, the CBDT in order to mitigate the hardships, in exercise of its powers u/s.119 of the Act has delegated the power to the Chief Commissioner of Income Tax (hereinafter in short ‘CCIT’)/Directorate General of Income Tax Investigation (hereinafter in short ‘DGIT’) to deal with such application for condonation of delay pending before the CBDT and upon transfer of such application by the Board to the delegated authorities (supra) to decide such application on merits. Thus, it is noted that CBDT has directed the CCIT/DGIT to admit the pending/new application for condonation of delay in furnishing of return of income (RoI) claiming deduction u/s.80P of the Act for AYs 2018-19 to 2022-23 and decide such applications. Pursuant to the ibid CBDT Circular, we note that the assessee has filed application dated 13.05.2024 for condonation of delay before the Chief Commissioner of Income Tax-1, Chennai, which is pending before the Ld CCIT. In such a scenario, for the ends of justice and fair play, we set aside the impugned order of the Ld.CIT(A) and restore the assessment back to the file of the AO with a direction to assess the claim of the assessee u/s.80P ITA No.1498/Chny/2024 (AY 2020-21) JJ105 Perambakkam Primary – Agricultural Co-op. Credit Society :: 5 :: of the Act on merits, after receipt of the decision of the Ld CCIT/delegated authority on the application for condoning delay in filing of the return u/s.139 of the Act; and thereafter, to frame the assessment after hearing the assessee in accordance to law. The assessee is at liberty to file written submissions/relevant documents to substantiate its case. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 09th day of October, 2024, in Chennai. Sd/- (अिमताभ शु\u0018ा) (AMITABH SHUKLA) लेखा सद\u0003य/ACCOUNTANT MEMBER Sd/- (एबी टी. वक ) (ABY T. VARKEY) \u0005याियक सद\u0003य/JUDICIAL MEMBER चे\tई/Chennai, !दनांक/Dated: 09th October, 2024. TLN, Sr.PS आदेश क\u001a \u0017ितिलिप अ$ेिषत/Copy to: 1. अपीलाथ\r/Appellant 2. \u000e\u000fथ\r/Respondent 3. आयकरआयु\u0015/CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u000eितिनिध/DR 5. गाड\u001eफाईल/GF "