K 1305 VELAPPANAICKANVALSU PRIMARY AGRICULTURAL CO-OP CREDIT SOCIETY LIMITED,TIRUPUR V. THE INCOME TAX OFFICER, WARD 1(4) TIRUPUR, TIRUPUR

ITA 1188/CHNY/2025

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The case involves the K 1305 Velappanaickanvalsu Primary Agricultural Co-operative Credit Society Ltd., which appealed against the order of the Learned Commissioner of Income Tax (Appeals), Delhi, confirming the disallowance of a deduction claimed under section 80P of the Income-tax Act, 1961. The disallowance was initially made by the Assessing Officer due to the late filing of the income tax return. The assessee argued that the delay was due to the late receipt of the mandatory co-operative audit report. The Tribunal decided to remit the matter back to the CIT(A) for re-adjudication after the decision on the condonation of delay petition pending before the CCIT, Coimbatore.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669487 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2019-2020
• Laws Referred To: Income-tax Act, 1961, Tamilnadu Co-operative Societies Act, 1983
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY KUMAR
• Assessee Lawyers: A. VIJAYALAKSHMI; C.A
• Keywords: Condonation of delay; Set aside; Co-operative Credit Society
• Section: 147; 148; 119(2)(b)

Judgement Text

" आयकर अपीलीय अिधकरण, ‘डी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0019ी यस यस िव ने रिव, \u0011ा ियक सद एवं \u0019ी जगदीश, लेखा सद क े सम( BEFORE SHRI SS VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1188/Chny/2025 िनधा 9रण वष9 /Assessment Year: 2019-20 K 1305 Velappanaickanvalsu Primary Agricultural Co-operative Credit Society Ltd., Velappanaickenvalasu, Vellkovil, Kangayam TK, Tiruppur – 638 111. [PAN: AABAK 4019K] Vs. The Income Tax Officer, Ward-1(4), Tirupur. (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीला थF की ओर से/ Appellant by : Shri A. Vijayalakshmi, C.A HIथF की ओर से /Respondent by : Shri Vijay Kumar, JCIT सुनवा ई की ता रीख/Date of Hearing : 17.06.2025 घोषणा की ता रीख /Date of Pronouncement : 26.06.2025 आदेश / O R D E R PER JAGADISH, A.M: Aforesaid appeal filed by the assessee for Assessment Year (A.Y) 2019-20 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 25.02.2025 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 28.02.2024. ITA No.1188/Chny/2025 K1305 Velappanaickanvalsu PACCS Ltd. :- 2 -: 2. The only effective ground of appeal in this appeal of assessee is against the order of Ld. CIT(A) in confirming the disallowance of Rs.16,80,575/- claimed u/s. 80P of the Act. 3. The assessee is a Primary Agricultural Co-operative Society, incorporated under the Tamilnadu Co-operative Societies Act, 1983. The assessee-society had deposited cash of Rs.1,41,94,250/- in its bank account maintained with the Erode Dist. Central Co-op. Bank, but did not file return of income within the prescribed time. Therefore, the A.O has reopened the assessment by issuing notice u/s. 148 of the Act. In response to notice, the assessee filed its return of income at Nil by claiming deduction u/s.80P of the Act of Rs.16,80,575/-. The A.O disallowed the claim u/s. 80P of the Act on the ground that the return was not filed within the due date prescribed u/s. 139(1) of the Act. Aggrieved by the disallowance, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) has confirmed the disallowance, observing that since the return was not filed within the due date u/s. 139(1) of the Act, the claim u/s. 80P of the Act could not be entertained. The Ld. CIT(A) also noted that condonation of delay is within the purview of the CCIT and once the delay is condoned by the CCIT, the A.O shall make necessary compliance. ITA No.1188/Chny/2025 K1305 Velappanaickanvalsu PACCS Ltd. :- 3 -: 4. Before us, the Learned Authorized Representative (AR) submitted that the assessee has already filed a petition u/s. 119(2)(b) of the Act before the CCIT, Coimbatore, seeking condonation of delay in filing the return of income. The said petition is currently pending. It was submitted that the Ld. CIT(A) proceeded to decide the matter without considering the pendency of the condonation petition. Accordingly, it was requested that the order of the Ld. CIT(A) be set aside and the matter be restored for fresh consideration after the decision of the CCIT. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions and perused the material available on record. The assessee has explained that the delay in filing the return was primarily due to the delayed receipt of the co-operative audit report, which is a mandatory requirement u/s. 80 of the Tamil Nadu Co-operative Societies Act, 1983. The assessee has also filed a petition before the CCIT, Coimbatore, seeking condonation of delay, which is still pending. The Ld. CIT(A) dismissed the appeal on the ITA No.1188/Chny/2025 K1305 Velappanaickanvalsu PACCS Ltd. :- 4 -: ground that the return was not filed within the prescribed due date, without considering the pendency of the condonation petition. In our considered opinion, the matter requires re-adjudication by the Ld. CIT(A) after the decision of the CCIT on the condonation petition. Accordingly, we deem it appropriate to remit the matter back to the file of the Ld. CIT(A) for denovo adjudication after the outcome of the condonation petition filed before the CCIT. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of June, 2025 at Chennai. Sd/- Sd/- (यस यस िव ने रिव) (SS Viswanethra Ravi) \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / Judicial Member (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 26th June, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "